Check Point (CHKP) AI Stock Analysis

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Check Point

(NASDAQ:CHKP)

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Outperform 76 (OpenAI - 4o)

Rating:76Outperform

Price Target:

$211.00

▲(10.03% Upside)

Check Point's strong financial performance and positive earnings call sentiment are key strengths, contributing significantly to the score. However, bearish technical indicators and valuation concerns slightly offset the overall positive outlook.

Positive Factors

Strong Financial Health

Check Point's robust financial health, characterized by strong profit margins and efficient cash flow, ensures long-term stability and resilience against market fluctuations.

AI-Powered Product Growth

The growth in AI-powered firewalls highlights Check Point's innovation and strengthens its competitive position in the cybersecurity market.

Strategic Market Recognition

Recognition in industry reports enhances Check Point's credibility and market positioning, potentially driving future customer acquisition and retention.

Negative Factors

Decline in Support Revenues

A decline in support revenues due to discounting could impact long-term revenue stability and suggests potential pricing pressure in the market.

Foreign Exchange Impacts

Foreign exchange impacts can affect profitability and operational costs, posing a risk to margin sustainability in the long term.

Deal Closure Timing Issues

Timing issues with deal closures can lead to revenue recognition delays, affecting short-term financial performance and forecasting accuracy.

Check Point (CHKP) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$20.78B

Dividend YieldN/A

Average Volume (3M)863.36K

Price to Earnings (P/E)21.0

Beta (1Y)0.48

Revenue Growth6.31%

EPS Growth25.27%

CountryUS

Employees6,669

SectorTechnology

Sector Strength88

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)3.94

Shares Outstanding108,368,520

10 Day Avg. Volume1,085,671

30 Day Avg. Volume863,361

Financial Highlights & Ratios

PEG Ratio3.82

Price to Book (P/B)7.40

Price to Sales (P/S)8.05

P/FCF Ratio20.08

Enterprise Value/Market Cap1.02

Enterprise Value/Revenue8.02

Enterprise Value/Gross Profit9.27

Enterprise Value/Ebitda21.48

Forecast

1Y Price Target

$231.35

Price Target Upside20.65% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering25

EPS Forecast (FY)11.23

Revenue Forecast (FY)$2.73B

Check Point Business Overview & Revenue Model

Company DescriptionCheck Point Software Technologies Ltd. (CHKP) is a leading global provider of cybersecurity solutions, headquartered in Tel Aviv, Israel. The company specializes in network security, endpoint protection, cloud security, mobile security, data security, and security management. Known for its innovative approach, Check Point offers a comprehensive portfolio of products and services designed to protect businesses from cyber threats, including firewalls, VPNs, intrusion prevention systems, and advanced threat prevention solutions.

How the Company Makes MoneyCheck Point makes money primarily through the sale of its cybersecurity products and services. The company's revenue model includes software and hardware sales, subscription-based services, and support and maintenance contracts. Key revenue streams include product licenses, which provide businesses with access to Check Point's security software, and security subscriptions that offer ongoing protection and updates. Additionally, the company generates income from professional services, such as consulting and training. Strategic partnerships with technology vendors and channel partners also play a significant role in expanding Check Point's market reach and enhancing its distribution capabilities, contributing to its earnings.

Check Point Key Performance Indicators (KPIs)

Any

Revenue by Geography

Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.

Chart InsightsCheck Point's revenue growth in the Americas and EMEA regions is steady, with EMEA leading at 5% growth, while the Americas follow closely at 6%. The standout is the Asia-Pacific region, which achieved a 12% growth, driven by strong demand for Quantum Force appliances. Despite increased operating expenses and macroeconomic uncertainties, the company's strategic focus on product innovation and regional expansion is paying off, as reflected in the robust financial performance and positive revenue outlook for the next quarter.

Data provided by:

Main Street Data

Check Point Earnings Call Summary

Earnings Call Date:Oct 28, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Jan 29, 2026

Earnings Call Sentiment Positive

The earnings call reflected strong growth and strategic advancements, particularly in AI and cybersecurity, with significant revenue and billing increases. However, challenges such as foreign exchange impacts and rising operating expenses pose concerns for future profitability.

Q3-2025 Updates

Positive Updates

Strong Revenue Growth

Revenue grew by 7% to $678 million, exceeding the midpoint of projections by $6 million. Non-GAAP EPS reached $3.94 per diluted share, surpassing guidance.

Record Calculated Billings

Calculated billings totaled $672 million, reflecting a robust 20% year-over-year growth driven by strong demand across the portfolio.

Strategic Acquisitions

Acquisition of Veriti and Lakera to enhance AI and cybersecurity capabilities, with Lakera offering unique solutions for AI security.

Global Revenue Distribution

Double-digit growth in Americas (10%) and APAC (8%) regions, with EMEA growing by 3%.

Emerging Technology Success

ARR for Harmony SASE, Harmony e-mail, and collaboration solutions grew organically by over 40% year-over-year.

Negative Updates

Impact of Foreign Exchange Rates

Weakening of the US dollar against the Israeli shekel negatively impacted margins by approximately 1 point, equivalent to $0.06.

Operational Expense Increase

Operating expenses increased by 11% due to continued investment and acquisitions, affecting overall profitability.

Q4 Margin Headwinds

Expected margin headwinds in Q4 due to FX rates and recent acquisition of Lakera, potentially affecting profitability.

Company Guidance

During the call, Check Point's leadership highlighted several key metrics and strategic developments for the third quarter of fiscal year 2025. Revenue grew by 7% to $678 million, surpassing the midpoint of guidance by $6 million. Non-GAAP EPS was reported at $3.94 per diluted share, exceeding projections and including a onetime tax benefit of $1.47. Calculated billings saw a robust 20% year-over-year growth, amounting to $672 million. The company's deferred revenues increased by 8% to $1.887 billion, while current calculated billings rose by 14% to $642 million. Additionally, remaining performance obligations grew by 9% to $2.4 billion. In terms of geographic revenue distribution, America saw a 10% increase, EMEA grew by 3%, and APAC by 8%. Looking ahead, Check Point raised its midpoint for 2025 revenue guidance, indicating continued confidence in its trajectory. The company also highlighted its strategic focus on AI security, with recent acquisitions like Lakera and Veriti enhancing its capabilities in this domain. Check Point's operating cash flow was strong at $241 million, despite a $66 million onetime tax payment, and the company ended the quarter with $2.8 billion in total cash and marketable securities. Guidance for Q4 anticipates revenue between $724 million and $764 million, with non-GAAP EPS projected between $2.70 and $2.80. The call emphasized strategic hires in the go-to-market organization and continued investments in AI and cybersecurity innovation.

Check Point Financial Statement Overview

Summary

Check Point demonstrates strong financial health with robust profit margins, efficient cash flow management, and a solid balance sheet. The company exhibits stable growth and profitability, with low financial risk due to minimal leverage.

Income Statement

Very Positive

Check Point has shown consistent revenue growth, with a revenue growth rate of 6.23% in 2024 compared to 2023. The gross profit margin remains strong at approximately 88.51%, indicating efficient cost management. However, the slight decline in EBIT and EBITDA compared to 2023 suggests a need for monitoring operational efficiencies.

Balance Sheet

Very Positive

The company maintains a strong balance sheet with a very low debt-to-equity ratio, reflecting minimal leverage risk. The equity ratio stands at 48.55%, indicating a solid equity position. Return on Equity remains robust at around 30.31%, showcasing effective use of shareholder funds.

Cash Flow

Very Positive

Operating cash flow is robust, reflecting strong cash generation capabilities. The free cash flow to net income ratio is impressive, indicating efficient capital allocation. Although free cash flow growth has slowed compared to prior years, the overall cash position remains strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.64B	2.56B	2.41B	2.33B	2.17B	2.06B
Gross Profit	2.28B	2.25B	2.13B	2.03B	1.91B	1.84B
EBITDA	986.60M	1.06B	1.02B	920.50M	938.20M	931.30M
Net Income	858.10M	845.70M	840.30M	796.90M	815.60M	846.60M
Balance Sheet
Total Assets	5.69B	5.75B	5.70B	5.72B	5.90B	5.84B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.37B	1.53B	1.64B	1.69B	1.69B
Total Debt	0.00	29.80M	0.00	0.00	0.00	0.00
Total Liabilities	2.85B	2.97B	2.87B	2.80B	2.64B	2.37B
Stockholders Equity	2.83B	2.79B	2.82B	2.93B	3.26B	3.47B
Cash Flow
Free Cash Flow	1.15B	1.03B	1.02B	1.08B	1.19B	1.14B
Operating Cash Flow	1.17B	1.05B	1.04B	1.10B	1.20B	1.16B
Investing Cash Flow	-108.30M	-24.00M	468.70M	-6.40M	-75.30M	-98.20M
Financing Cash Flow	-1.08B	-1.06B	-1.16B	-1.17B	-1.11B	-1.09B

Check Point Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price191.76

Price Trends

50DMA

196.77

Negative

100DMA

201.97

Negative

200DMA

210.74

Negative

Market Momentum

MACD

-0.65

Negative

RSI

49.14

Neutral

STOCH

17.94

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHKP, the sentiment is Neutral. The current price of 191.76 is below the 20-day moving average (MA) of 194.58, below the 50-day MA of 196.77, and below the 200-day MA of 210.74, indicating a neutral trend. The MACD of -0.65 indicates Negative momentum. The RSI at 49.14 is Neutral, neither overbought nor oversold. The STOCH value of 17.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHKP.

Check Point Risk Analysis

Check Point disclosed 36 risk factors in its most recent earnings report. Check Point reported the most risks in the "Tech & Innovation" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Check Point Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTNT	78 Outperform	$65.30B	34.01	165.17%	―	14.46%	48.06%
PANW	78 Outperform	$145.20B	133.23	17.45%	―	14.87%	-57.43%
CHKP	76 Outperform	$20.78B	21.02	34.19%	―	6.31%	25.27%
ZS	71 Outperform	$51.97B	―	-2.70%	―	23.31%	31.04%
NET	67 Neutral	$81.59B	―	-8.88%	―	28.06%	-7.44%
CRWD	66 Neutral	$133.99B	―	-8.99%	―	23.46%	-270.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

CHKP

Check Point

195.41

21.40

12.30%

FTNT

Fortinet

85.99

5.12

6.33%

PANW

Palo Alto Networks

213.18

20.59

10.69%

Zscaler

323.90

130.87

67.80%

CRWD

CrowdStrike Holdings

534.14

214.14

66.92%

NET

Cloudflare

228.51

136.00

147.01%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2025