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

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

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 Stock Performance

NASDAQ:CHKP traded down $13.39 during mid-day trading on Thursday, reaching $163.08. The stock had a trading volume of 2,845,803 shares, compared to its average volume of 1,338,413. The firm has a market capitalization of $17.94 billion, a price-to-earnings ratio of 17.89, a PEG ratio of 2.91 and a beta of 0.58. The business has a 50 day simple moving average of $185.72 and a 200 day simple moving average of $191.15. Check Point Software Technologies has a twelve month low of $161.00 and a twelve month high of $234.35.

Analyst Ratings Changes

Several analysts have issued reports on CHKP shares. Scotiabank reissued a “sector perform” rating and issued a $195.00 price objective on shares of Check Point Software Technologies in a research note on Wednesday, January 21st. Piper Sandler decreased their price target on shares of Check Point Software Technologies from $260.00 to $240.00 and set an “overweight” rating for the company in a report on Monday, January 5th. Stifel Nicolaus set a $211.00 target price on shares of Check Point Software Technologies in a research note on Tuesday, October 28th. Mizuho set a $225.00 price target on Check Point Software Technologies in a research note on Wednesday, October 29th. Finally, Weiss Ratings raised shares of Check Point Software Technologies from a “hold (c)” rating to a “buy (b-)” rating in a research report on Thursday, October 30th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $226.62.

Trending Headlines about Check Point Software Technologies

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

• Positive Sentiment: Q4 beat on the bottom line — non?GAAP EPS of $3.40 topped consensus and GAAP/non?GAAP EPS were materially higher year-over-year; security subscription revenue grew double digits (about +11%), and calculated billings and RPO also increased, supporting recurring revenue momentum. Cyber security firm Check Point Software Q4 profit tops estimates
• Positive Sentiment: Management is prioritizing AI security and announced three acqui sitions (Cyata, Cyclops, Rotate) to expand AI agent discovery, exposure management and MSP offerings — a strategic move that could boost long?term product differentiation as enterprises adopt AI. Check Point Software Reports Fourth Quarter and 2025 Full Year Results
• Neutral Sentiment: Balance-sheet / capital actions: the company raised cash via convertible notes (about $1.8B net), increased cash reserves to ~$4.34B and executed large share repurchases (~$1.4B in 2025). These moves provide flexibility but add financing complexity (convertible notes/capped calls). Check Point Software Reports Fourth Quarter and 2025 Full Year Results
• Negative Sentiment: Revenue essentially flat to expectations — Q4 revenue was ~$745M versus analysts’ ~$746M, which may have cooled enthusiasm since the EPS beat was partly driven by one?time tax benefits. Investors often discount beats that include tax?settlement gains. Check Point (CHKP) Reports Q4 Earnings: What Key Metrics Have to Say
• Negative Sentiment: Profit quality and margins: GAAP operating income declined vs. prior quarter and the company disclosed about $0.52 of EPS benefit in Q4 (and larger year benefit) from tax settlements and provisioning — raising questions about underlying operational leverage as R&D and S&M spend stepped up and acquisition-related costs mount. Check Point Software Technologies Ltd. Reports Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Technicals and sentiment: the stock is trading below its 50- and 200?day moving averages and is near its 52?week low, which can amplify downside on a mixed print as momentum/technicals trigger selling. (See the company release and market coverage above for full figures.)

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ameriprise Financial Inc. raised its position in shares of Check Point Software Technologies by 9.3% in the 2nd quarter. Ameriprise Financial Inc. now owns 2,001,247 shares of the technology company’s stock worth $442,733,000 after buying an additional 170,373 shares during the period. Deutsche Bank AG boosted its stake in shares of Check Point Software Technologies by 6.3% in the fourth quarter. Deutsche Bank AG now owns 1,155,064 shares of the technology company’s stock valued at $214,334,000 after purchasing an additional 68,128 shares during the period. Northern Trust Corp increased its position in shares of Check Point Software Technologies by 7.2% during the third quarter. Northern Trust Corp now owns 795,442 shares of the technology company’s stock worth $164,585,000 after acquiring an additional 53,320 shares during the last quarter. Earnest Partners LLC boosted its stake in shares of Check Point Software Technologies by 9.2% during the 4th quarter. Earnest Partners LLC now owns 767,486 shares of the technology company’s stock valued at $142,415,000 after buying an additional 64,440 shares during the last quarter. Finally, Lazard Asset Management LLC raised its stake in shares of Check Point Software Technologies by 24.2% in the 3rd quarter. Lazard Asset Management LLC now owns 681,488 shares of the technology company’s stock valued at $141,007,000 after purchasing an additional 132,783 shares in the last quarter. 98.51% of the stock is currently owned by hedge funds and other institutional investors.

Check Point Software Technologies Company Profile

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).