Check Point (CHKP)
NASDAQ:CHKP
Top Page
Check Point
(NASDAQ:CHKP)
Select Model
Select Model
Rating:69Neutral
Price Target:
$148.00
▲(9.45% Upside)
Action:DowngradedDate:02/18/26
The score is driven primarily by strong financial quality (high margins and robust free cash flow), tempered by increased leverage in 2025. Technicals are a meaningful drag given the price trading below key moving averages with negative MACD. Valuation is reasonable at ~17.8x earnings, while the latest earnings call points to steady (not accelerating) topline growth with strong subscription momentum but several near-term margin and product headwinds.
Positive Factors
High and Stable Margins
Consistently very high gross and net margins reflect durable software-led economics and pricing power across products and services. This structural profitability supports reinvestment, buffers cyclical hardware pressures, and sustains long-term free cash flow and shareholder returns.
Negative Factors
Material Increase in Leverage
A sudden ~$2B rise in leverage materially reduces prior balance-sheet conservatism and financial flexibility. Higher debt increases refinancing and covenant risk, constrains M&A/ buyback optionality, and raises sensitivity to adverse cash-flow swings over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High and Stable Margins
Consistently very high gross and net margins reflect durable software-led economics and pricing power across products and services. This structural profitability supports reinvestment, buffers cyclical hardware pressures, and sustains long-term free cash flow and shareholder returns.
Read all positive factors
Check Point (CHKP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.09B
Dividend YieldN/A
Average Volume (3M)927.80K
Price to Earnings (P/E)18.8
Beta (1Y)0.49
Revenue Growth6.31%
EPS Growth25.27%
CountryUS
Employees6,669
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)3.40
Shares Outstanding104,232,796
10 Day Avg. Volume904,123
30 Day Avg. Volume927,796
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 Cap1.09
Enterprise Value/Revenue5.66
Enterprise Value/Gross Profit6.63
Enterprise Value/Ebitda15.72
Forecast
1Y Price Target
$194.39Price Target Upside43.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering27
EPS Forecast (FY)10.43
Revenue Forecast (FY)$2.89B
Check Point Business Overview & Revenue Model
Company Description
Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a portfolio of network security, endpoint security, data security, and management solutions. It p...
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 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.
Data provided by:
The Fly
The FlyCheck Point Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
Balanced results: the company reported solid revenue and subscription momentum, strong profitability, robust cash generation and strategic M&A to build AI and exposure-management capabilities. Offsetting these positives are short-term headwinds to product revenue recognition, margin pressure from memory price increases and FX, elevated operating expenses and acquisition-related dilution, and guidance that implies modest overall revenue growth. Management emphasizes execution and longer-term acceleration tied to go-to-market and successful integration of new capabilities.Positive Updates
Solid Quarterly and Full-Year Revenues
Q4 revenue $745M, up 6% year-over-year; FY2025 revenue $2.725B, up 6% YoY; both above the midpoint of guidance (Q4 $1M above midpoint; FY $5M above midpoint).
Negative Updates
Product Revenue Reallocation Headwind
Subscription price increases shifted bundled deals allocation away from product, creating a $6M headwind to product revenues in Q4 and an expected $4M–$5M headwind in Q1 2026 (short-term impact on product revenue recognition).
Read all updates
Q4-2025 Updates
Positive
Negative
Solid Quarterly and Full-Year Revenues
Q4 revenue $745M, up 6% year-over-year; FY2025 revenue $2.725B, up 6% YoY; both above the midpoint of guidance (Q4 $1M above midpoint; FY $5M above midpoint).
Read all positive updates
Company Guidance
Check Point guided Q1 2026 revenue of $655–$685M and full‑year revenue of $2.83–$2.95B (growth 4–8%, midpoint 6%); Q1 subscription revenue is expected at $318–$328M and full‑year subscription growth of 10–14% (midpoint 12%). Non‑GAAP EPS is guided to $2.35–$2.45 for Q1 and $10.05–$10.85 for the year (GAAP EPS lower by ~$0.64 in Q1 and ~$2.58 for FY). Adjusted free cash flow is guided to $420–$460M in Q1 (~66% of Q1 midpoint revenue) and $1.15–$1.25B for the year (~42% of revenue at midpoint). Management expects non‑GAAP operating margin around 39–40% (including an estimated ~0.5 ppt drag from recent acquisitions), a ~1 ppt gross‑margin headwind in 2026 from memory price increases (mostly in H2), and a potential 1–1.5 ppt operating‑margin FX headwind if current exchange levels persist. They estimate a 2026 tax rate of 16–17%, highlighted a possible ~$50M operating‑income benefit from the Israeli R&D incentive program pending Q1 certification, expect roughly $40M of financial income per quarter related to the $2B convertible issuance, and reiterated a short‑term product revenue headwind of ~$4–$5M in Q1 (after a $6M reallocation effect in Q4) with a 5% product price increase effective 1/1/2026 expected to support product growth from Q2.Check Point Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
62
Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.73B | 2.56B | 2.41B | 2.33B | 2.17B |
| Gross Profit | 2.33B | 2.25B | 2.13B | 2.03B | 1.91B |
| EBITDA | 924.00M | 1.06B | 1.02B | 920.50M | 938.20M |
| Net Income | 1.06B | 845.70M | 840.30M | 796.90M | 815.60M |
Balance Sheet | |||||
| Total Assets | 7.81B | 5.75B | 5.70B | 5.72B | 5.90B |
| Cash, Cash Equivalents and Short-Term Investments | 3.01B | 1.37B | 1.53B | 1.64B | 1.69B |
| Total Debt | 1.97B | 29.80M | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 4.92B | 2.97B | 2.87B | 2.80B | 2.64B |
| Stockholders Equity | 2.88B | 2.79B | 2.82B | 2.93B | 3.26B |
Cash Flow | |||||
| Free Cash Flow | 1.21B | 1.03B | 1.02B | 1.08B | 1.19B |
| Operating Cash Flow | 1.23B | 1.05B | 1.04B | 1.10B | 1.20B |
| Investing Cash Flow | -459.60M | -24.00M | 468.70M | -6.40M | -75.30M |
| Financing Cash Flow | 752.00M | -1.06B | -1.16B | -1.17B | -1.11B |
Check Point Technical Analysis
Negative
135.22
Price Trends
158.05
Negative
172.92
Negative
186.87
Negative
Market Momentum
-4.70
Negative
29.32
Positive
35.04
Neutral
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 135.22 is below the 20-day moving average (MA) of 146.91, below the 50-day MA of 158.05, and below the 200-day MA of 186.87, indicating a bearish trend. The MACD of -4.70 indicates Negative momentum. The RSI at 29.32 is Positive, neither overbought nor oversold. The STOCH value of 35.04 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $127.08B | 71.18 | 15.49% | ― | 15.30% | -60.71% | |
72 Outperform | $56.75B | 31.84 | 123.64% | ― | 14.78% | 22.52% | |
70 Outperform | $96.12B | -686.05 | -4.68% | ― | 22.05% | -341.24% | |
69 Neutral | $14.09B | 18.84 | 36.62% | ― | 6.31% | 25.27% | |
67 Neutral | $18.98B | -232.70 | -3.48% | ― | 23.24% | -8.83% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $58.78B | -671.68 | -7.48% | ― | 28.06% | -7.44% |
* Technology Sector Average
CHKP
Check Point
135.22
-89.25
-39.76%
FTNT
Fortinet
76.70
-22.50
-22.68%
PANW
Palo Alto Networks
155.73
-17.82
-10.27%
ZS
Zscaler
118.05
-86.59
-42.31%
CRWD
CrowdStrike Holdings
379.02
-13.78
-3.51%
NET
Cloudflare
166.99
57.85
53.01%
Check Point Corporate Events
Check Point Posts Strong 2025 Results and Accelerates AI Security Push With New Acquisitions
Feb 12, 2026
On February 12, 2026, Check Point Software Technologies reported solid fourth-quarter and full-year 2025 results, with Q4 revenue rising 6% year on year to $745 million and calculated billings up 8% to $1.04 billion. Security subscription revenue ...
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.