Check Point Software (CHKP)
NASDAQ:CHKP
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Check Point
(NASDAQ:CHKP)
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Rating:70Outperform
Price Target:
$142.00
▲(4.08% Upside)
Action:Upgraded
Date:05/02/26
CHKP scores well on financial quality, driven by strong margins and cash generation, and the earnings call reinforced solid execution despite a near-term product headwind and reduced revenue outlook. The main drag on the overall score is weak technicals, with the stock in a pronounced downtrend below major moving averages.
Positive Factors
High margins & cash conversion
Sustained very high gross and net margins with nearly one-for-one free cash flow conversion indicate durable earnings quality and cash generation. This supports reinvestment in R&D, acquisitions, and shareholder returns while providing a buffer against revenue cyclicality.
Negative Factors
Rising leverage
Material increase in debt from near-zero to ~$2B reduces financial cushion and raises refinancing and interest risks. Coverage metrics remain below 1, meaning cash flow currently does not fully offset the debt burden, constraining flexibility for large investments or downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & cash conversion
Sustained very high gross and net margins with nearly one-for-one free cash flow conversion indicate durable earnings quality and cash generation. This supports reinvestment in R&D, acquisitions, and shareholder returns while providing a buffer against revenue cyclicality.
Read all positive factors
Check Point Key Performance Indicators (KPIs)
Any
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.
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.
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The Fly
The FlyCheck Point (CHKP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.75B
Dividend YieldN/A
Average Volume (3M)1.58M
Price to Earnings (P/E)12.1
Beta (1Y)0.46
Revenue Growth5.84%
EPS Growth27.53%
CountryUS
Employees6,669
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)9.91
Shares Outstanding104,232,796
10 Day Avg. Volume1,322,113
30 Day Avg. Volume1,581,240
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)6.91
Price to Sales (P/S)7.31
P/FCF Ratio16.49
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue4.94
Enterprise Value/Gross Profit5.72
Enterprise Value/Ebitda13.13
Forecast
1Y Price Target
$143.71Price Target Upside5.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering31
EPS Forecast (FY)10.42
Revenue Forecast (FY)$2.81B
Check Point Business Overview & Revenue Model
Company Description
Check Point Software Technologies Ltd. is a global provider specializing in the development, marketing, and support of comprehensive information technology security solutions. Their extensive portfolio addresses critical areas such as network, end...
How the Company Makes Money
Check Point primarily makes money by selling cybersecurity products and services under a mix of recurring and non-recurring revenue streams. A major component is recurring revenue from software subscriptions, cloud-delivered security services, and...
Check Point Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented a mix of solid financial execution—strong profitability, free cash flow, subscription growth and emerging-product momentum—counterbalanced by a near-term top-line headwind from go-to-market changes that disrupted appliance/firewall sales and prompted a modest downward revenue update. Management emphasized these headwinds are transitory, expect appliance recovery in H2, and highlighted strategic investments in AI security and leadership to drive longer-term growth.Positive Updates
Strong profitability and margins
Non-GAAP operating income of $265M representing a 40% operating margin; non-GAAP net income of $265M; GAAP net income $192M. Non-GAAP EPS grew 13% year-over-year to $2.50 and GAAP EPS rose ~5% to $1.81.
Negative Updates
Product (appliance/firewall) revenue weakness
Lower-than-expected product revenues—primarily firewall appliances—driven by short-term disruption from the go-to-market transition; total revenue was $2M below the midpoint of guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong profitability and margins
Non-GAAP operating income of $265M representing a 40% operating margin; non-GAAP net income of $265M; GAAP net income $192M. Non-GAAP EPS grew 13% year-over-year to $2.50 and GAAP EPS rose ~5% to $1.81.
Read all positive updates
Company Guidance
Management guided Q2 revenue of $660–690 million, Q2 subscription revenue of $328–338 million, Q2 non‑GAAP EPS of $2.40–2.50 (with GAAP roughly $0.70 lower) and Q2 adjusted free cash flow of $145–175 million. For fiscal 2026 they narrowed total revenue to $2.770–2.850 billion (citing near‑term appliance/firewall headwinds) while keeping subscription guidance and full‑year non‑GAAP EPS unchanged at $10.05–10.85 and leaving adjusted free cash flow guidance intact. Management framed this guidance against Q1 results of $668M revenue (+5% YoY), $323M subscription revenue (+11% YoY), non‑GAAP EPS $2.50 (+13% YoY), adjusted FCF $457M (+11% and $70M above midpoint), deferred revenue of $2.06B (+8%), calculated billings of $548M (‑1% YoY; current calculated billings +2%) and remaining performance obligation of $2.592B (+7%). They attributed the revenue reset to short‑term disruption from go‑to‑market changes affecting appliance sales but pointed to strong momentum in emerging products (CTEM ARR growth ~96% YoY; emerging product calculated billings ~+45%) and said they expect improvement in the back half of the year.Check Point Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
68
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.76B | 2.73B | 2.56B | 2.41B | 2.33B | 2.17B |
| Gross Profit | 2.38B | 2.36B | 2.25B | 2.13B | 2.03B | 1.91B |
| EBITDA | 1.04B | 1.04B | 1.06B | 1.02B | 966.30M | 984.90M |
| Net Income | 1.06B | 1.06B | 845.70M | 840.30M | 796.90M | 815.60M |
Balance Sheet | ||||||
| Total Assets | 7.61B | 7.81B | 5.75B | 5.70B | 5.72B | 5.90B |
| Cash, Cash Equivalents and Short-Term Investments | 2.77B | 3.01B | 1.37B | 1.53B | 1.64B | 1.69B |
| Total Debt | 1.97B | 1.97B | 29.80M | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 4.80B | 4.92B | 2.97B | 2.87B | 2.80B | 2.64B |
| Stockholders Equity | 2.81B | 2.88B | 2.79B | 2.82B | 2.93B | 3.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.31B | 1.21B | 1.03B | 1.02B | 1.08B | 1.19B |
| Operating Cash Flow | 1.34B | 1.23B | 1.05B | 1.04B | 1.10B | 1.20B |
| Investing Cash Flow | -704.46M | -459.60M | -24.00M | 468.70M | -6.40M | -75.30M |
| Financing Cash Flow | 788.88M | 752.00M | -1.06B | -1.16B | -1.17B | -1.11B |
Check Point Technical Analysis
Negative
136.43
Price Trends
128.91
Negative
144.34
Negative
168.69
Negative
Market Momentum
-2.01
Positive
39.92
Neutral
16.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHKP, the sentiment is Negative. The current price of 136.43 is above the 20-day moving average (MA) of 129.89, above the 50-day MA of 128.91, and below the 200-day MA of 168.69, indicating a bearish trend. The MACD of -2.01 indicates Positive momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 16.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $234.54B | 248.92 | 6.30% | ― | 19.51% | -33.05% | |
79 Outperform | $106.04B | 54.71 | 155.65% | ― | 15.75% | 6.24% | |
76 Outperform | $174.34B | -7,086.62 | -0.58% | ― | 23.17% | 73.54% | |
70 Outperform | $12.75B | 12.11 | 36.43% | ― | 5.84% | 27.53% | |
69 Neutral | $79.57B | -911.08 | -6.23% | ― | 31.55% | -4.50% | |
68 Neutral | $20.19B | -259.32 | -3.71% | ― | 24.61% | -91.58% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CHKP
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Check Point Corporate Events
Check Point Discloses VPN Vulnerability and Issues Software Fix
Jun 8, 2026
Check Point disclosed on June 8, 2026 that it had identified a security vulnerability affecting Remote Access VPN and Mobile Access functions in certain configurations of its security gateway products. The company said it became aware of the issue...
Check Point Software Expands Share Repurchase Authorization by $2 Billion
May 11, 2026
On May 11, 2026, Check Point Software Technologies announced that its board approved a $2.0 billion expansion of the company’s ongoing share repurchase authorization. The move extends a program under which the firm has already bought back ab...
Check Point Posts Solid Q1 2026 Growth and Names New Chief Revenue Officer
Apr 30, 2026
On April 30, 2026, Check Point reported first-quarter 2026 results showing total revenue of $668 million, up 5% year on year, with security subscription revenue rising 11% to $323 million. GAAP operating income reached $185 million and non-GAAP op...
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.