Check Point Software Technologies (NASDAQ:CHKP) Issues Earnings Results, Beats Estimates By $0.63 EPS

Check Point Software Technologies (NASDAQ:CHKP) announced its quarterly earnings data on Thursday. The technology company reported $3.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.77 by $0.63, Briefing.com reports. Check Point Software Technologies had a return on equity of 37.91% and a net margin of 37.62%.The business had revenue of $744.90 million during the quarter, compared to analysts’ expectations of $746.40 million. During the same quarter in the previous year, the business earned $2.70 earnings per share. The firm’s quarterly revenue was up 5.9% compared to the same quarter last year.

Here are the key takeaways from Check Point Software Technologies’ conference call:

• Check Point is repositioning to lead the AI-era of cybersecurity via four strategic pillars — hybrid mesh, workspace, exposure management, and AI security — and announced targeted acquisitions (Cyclops, Cyada, Lakera) plus the Rotate team to accelerate those capabilities.
• Solid Q4 and FY results: Q4 revenue of $745M (+6% YoY), FY revenue $2.725B, subscription revenue up 11%, non‑GAAP EPS of $3.40 beat guidance, and a strong balance sheet (~$4.3B cash plus ~$1.8B net from a $2B convertible offering) alongside $425M of buybacks.
• 2026 guidance implies modest top‑line momentum (revenues guided to $2.83B–$2.95B, midpoint ~6% growth) — management highlighted subscription acceleration but total revenue guidance shows no immediate acceleration, which could disappoint investors.
• Reported EPS outperformance was meaningfully helped by one‑time tax items (~$0.52 in Q4 and ~$1.90 for the year); excluding those benefits, EPS beats were modest (~$0.08–$0.09).
• Near‑term margin headwinds: management expects ~1 point gross‑margin pressure from higher memory costs in 2026, a potential ~1–1.5 point operating‑margin FX headwind if current rates persist, plus ~0.5 point margin dilution from recent acquisitions.

Check Point Software Technologies Price Performance

Shares of NASDAQ:CHKP traded down $10.12 during mid-day trading on Thursday, reaching $166.35. 3,244,174 shares of the company traded hands, compared to its average volume of 1,352,017. The company’s 50 day moving average price is $185.72 and its 200-day moving average price is $191.15. The firm has a market cap of $18.30 billion, a PE ratio of 18.26, a PEG ratio of 2.91 and a beta of 0.58. Check Point Software Technologies has a 52 week low of $161.00 and a 52 week high of $234.35.

Key Stories Impacting Check Point Software Technologies

Here are the key news stories impacting Check Point Software Technologies this week:

• Positive Sentiment: Q4 earnings beat and strong profitability — non‑GAAP EPS of $3.40 topped the consensus (~$2.77) and margins/ROE remain high, driven by subscription strength. This supports near‑term earnings stability. Read More.
• Positive Sentiment: Product momentum and subscription growth — total revenue rose ~6% Y/Y and security subscription revenue grew ~11% Y/Y, indicating recurring revenue expansion and customer adoption of Check Point’s platforms. Read More.
• Positive Sentiment: Strategic AI push via acquisitions — Check Point announced acquisitions (Cyata, Cyclops, Rotate and earlier Lakera AI) to bolster AI security, positioning the company to capture enterprise AI‑security demand. Management stressed AI as a 2026 priority. Read More.
• Neutral Sentiment: Strong cash position and buybacks — cash & equivalents + marketable securities rose to ~$4.34B (proceeds from convertible notes) and the company repurchased ~$1.4B of stock in 2025; that supports capital return but also reflects active balance‑sheet management. Read More.
• Neutral Sentiment: Calculated billings and RPO up ~8% — forward‑looking contract metrics improved, which signals revenue visibility but their timing/recognition can mute near‑term impact. Read More.
• Negative Sentiment: Revenue slightly missed expectations — Q4 revenue $744.9M vs ~ $746.4M consensus (a small miss) which may have disappointed investors who focus on top‑line momentum. Read More.
• Negative Sentiment: One‑time tax/tax‑settlement benefit boosted EPS — management disclosed ~ $0.52 benefit to Q4 EPS from tax rate changes and a settlement, suggesting some of the beat is transitory and could temper forward EPS expectations. Read More.
• Negative Sentiment: Financing and M&A add complexity — issuance of nearly $2B of convertible notes boosted cash but increased long‑term liabilities; multiple small acquisitions and higher operating expenses raise integration and margin risks. Some investors may be selling into the mixed print. Read More.

Institutional Trading of Check Point Software Technologies

Hedge funds and other institutional investors have recently modified their holdings of the company. Marex Group plc purchased a new position in shares of Check Point Software Technologies during the 4th quarter valued at $265,000. IQ EQ FUND MANAGEMENT IRELAND Ltd raised its holdings in Check Point Software Technologies by 7.8% during the fourth quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 20,096 shares of the technology company’s stock valued at $3,729,000 after acquiring an additional 1,462 shares during the period. M&G PLC lifted its position in shares of Check Point Software Technologies by 11.4% in the fourth quarter. M&G PLC now owns 133,535 shares of the technology company’s stock valued at $24,838,000 after acquiring an additional 13,701 shares in the last quarter. Hardworking Capital Advisors LLC purchased a new position in shares of Check Point Software Technologies in the fourth quarter valued at about $243,000. Finally, Steward Partners Investment Advisory LLC boosted its stake in shares of Check Point Software Technologies by 52.9% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 22,535 shares of the technology company’s stock worth $4,182,000 after acquiring an additional 7,798 shares during the period. 98.51% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on CHKP shares. Morgan Stanley set a $197.00 price target on Check Point Software Technologies in a report on Wednesday, January 28th. Barclays lowered their target price on shares of Check Point Software Technologies from $235.00 to $220.00 and set an “equal weight” rating on the stock in a research note on Monday, January 5th. Scotiabank reiterated a “sector perform” rating and issued a $195.00 price target on shares of Check Point Software Technologies in a research note on Wednesday, January 21st. Cantor Fitzgerald restated a “neutral” rating and set a $220.00 price objective on shares of Check Point Software Technologies in a research report on Wednesday, October 22nd. Finally, Royal Bank Of Canada cut their target price on shares of Check Point Software Technologies from $215.00 to $195.00 and set a “sector perform” rating for the company in a research report on Monday, January 5th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $226.62.

About Check Point Software Technologies

Check Point Software Technologies Ltd. is an Israeli-founded cybersecurity company that develops, markets and supports a broad portfolio of network, cloud and endpoint security products. Founded in 1993, the company was an early pioneer of stateful inspection firewall technology and later developed a modular “software blade” approach that allowed customers to combine protection capabilities. Check Point’s product set spans physical and virtual security appliances, software and cloud-native services designed to prevent cyberattacks, protect data and simplify security management for enterprises and service providers.

Key product families include Quantum Security Gateways (on-premises and hybrid appliances), CloudGuard (cloud security posture and workload protection), Harmony (endpoint, remote access and unified endpoint security), and SandBlast (advanced threat prevention and sandboxing).