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Check Point
(NASDAQ:CHKP)
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Rating:72Outperform
Price Target:
$159.00
▲(23.21% Upside)
Action:Reiterated
Date:08/03/26
CHKP scores well on financial quality and valuation: strong profitability and cash generation support the story, and the P/E is relatively modest. The score is held back by weak technicals (trading below major moving averages) and a mixed near-term outlook from the earnings call, where subscription momentum and buybacks are positives but product weakness, GTM disruption, and reliance on a stronger Q4 increase execution risk.
Positive Factors
Recurring Subscription Growth
Subscription-led growth strengthens revenue durability because customers typically renew security capabilities and support over time. The 12% increase, alongside subscription-based monetization, indicates Check Point is shifting toward a more recurring and predictable earnings base.
Negative Factors
Firewall Product Weakness
A sharp decline in appliance revenue exposes weakness in an established part of Check Point’s portfolio and can affect the attached software and support opportunity. Continued weakness in Q3 places greater importance on successful product transition and recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Subscription Growth
Subscription-led growth strengthens revenue durability because customers typically renew security capabilities and support over time. The 12% increase, alongside subscription-based monetization, indicates Check Point is shifting toward a more recurring and predictable earnings base.
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
$14.64B
Dividend YieldN/A
Average Volume (3M)1.09M
Price to Earnings (P/E)14.5
Beta (1Y)0.41
Revenue Growth4.64%
EPS Growth25.51%
CountryUS
Employees6,825
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)9.90
Shares Outstanding102,100,630
10 Day Avg. Volume944,963
30 Day Avg. Volume1,087,505
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)6.91
Price to Sales (P/S)7.31
P/FCF Ratio16.98
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue4.81
Enterprise Value/Gross Profit5.59
Enterprise Value/Ebitda13.53
Forecast
1Y Price Target
$143.68Price Target Upside11.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering25
EPS Forecast (FY)10.44
Revenue Forecast (FY)$2.80B
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 associated support/services to businesses and public-sector organizations. Its revenue model is largely built on: (1) Software subscriptions and licenses: customers pay for ti...
Check Point Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call presents a generally positive outlook driven by accelerating subscription growth, strong ARR/RPO trends, product innovation (AI Network Firewall and AI Defense plane), solid non-GAAP EPS and free cash flow, and a healthy balance sheet with an expanded buyback. Offsetting these positives are meaningful near-term challenges: a 14% decline in product revenues (firewall appliances), go-to-market disruptions that pushed deals from Q3 into Q4, rising operating costs for planned investments, and some billing timing noise. Management is maintaining full-year guidance, views Q3 as the trough, and is making significant sales investments that are expected to benefit 2027—overall the positives appear to outweigh the near-term headwinds.Positive Updates
Revenue and Subscription Growth
Total revenues of $674 million, up 1% year-over-year; subscription revenue grew 12% YoY to $333 million and is the primary driver of growth.
Negative Updates
Product Revenue Weakness
Product revenues declined 14% in Q2, driven by lower demand for firewall appliances; company expects similar weakness in Q3 with the view that Q4 will return to growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Subscription Growth
Total revenues of $674 million, up 1% year-over-year; subscription revenue grew 12% YoY to $333 million and is the primary driver of growth.
Read all positive updates
Company Guidance
Check Point reiterated its full‑year 2026 guidance and said Q3 should mark a trough ahead of a stronger, back‑end‑loaded Q4; Q3 outlook is $665–$685M total revenue, $332–$343M subscription revenue, non‑GAAP EPS $2.43–$2.53 (GAAP ~ $0.70 lower), and adjusted free cash flow $235–$265M. For context, Q2 results were: $674M total revenue (1% YoY), $333M subscription revenue (12% YoY), product revenue down 14%, non‑GAAP EPS $2.55 (+8% YoY), adjusted FCF $161M (24% of revenues), deferred revenue $2.025B (+7%), RPO $2.55B (+7%) with current RPO $1.6B (+4%), calculated billing ~$639M (current $641M, +2%), cash & securities $4.2B, and ~103.5M diluted shares (buybacks of ~2.5M shares for $325M this quarter and a $2B repurchase program expansion); management expects product revenue to return to growth in Q4 and noted planned go‑to‑market expansion of roughly 300 sales hires whose ramp benefits are expected in 2027.Check Point Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
72
Positive
Cash Flow
83
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 | 983.20M | 1.04B | 1.06B | 1.02B | 966.30M | 984.90M |
| Net Income | 1.05B | 1.06B | 845.70M | 840.30M | 796.90M | 815.60M |
Balance Sheet | ||||||
| Total Assets | 7.51B | 7.81B | 5.75B | 5.70B | 5.72B | 5.90B |
| Cash, Cash Equivalents and Short-Term Investments | 2.28B | 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 | 4.78B | 4.92B | 2.97B | 2.87B | 2.80B | 2.64B |
| Stockholders Equity | 2.74B | 2.88B | 2.79B | 2.82B | 2.93B | 3.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 1.17B | 1.03B | 1.02B | 1.08B | 1.19B |
| Operating Cash Flow | 1.17B | 1.20B | 1.05B | 1.04B | 1.10B | 1.20B |
| Investing Cash Flow | -701.28M | -680.40M | -24.00M | 468.70M | -6.40M | -75.30M |
| Financing Cash Flow | 587.21M | 752.00M | -1.06B | -1.16B | -1.17B | -1.11B |
Check Point Technical Analysis
Positive
129.05
Price Trends
133.86
Positive
132.16
Positive
142.19
Positive
Market Momentum
1.93
Negative
64.39
Neutral
91.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHKP, the sentiment is Positive. The current price of 129.05 is below the 20-day moving average (MA) of 133.98, below the 50-day MA of 133.86, and below the 200-day MA of 142.19, indicating a bullish trend. The MACD of 1.93 indicates Negative momentum. The RSI at 64.39 is Neutral, neither overbought nor oversold. The STOCH value of 91.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $232.81B | 6,799.43 | 1.29% | ― | 24.30% | ― | |
78 Outperform | $125.41B | 60.86 | 187.95% | ― | 18.77% | 12.93% | |
72 Outperform | $14.64B | 14.49 | 36.43% | ― | 4.64% | 25.51% | |
70 Outperform | $278.35B | 754.89 | 1.68% | ― | 24.49% | -68.55% | |
65 Neutral | $34.98B | -593.15 | -2.76% | ― | 25.42% | -47.39% | |
62 Neutral | $8.91B | -11.54 | -434.99% | ― | 30.40% | -124.09% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Check Point Corporate Events
Check Point Adds Veteran Tech Adviser Yoram Tietz to Board Amid AI-Focused Cyber Strategy
Sep 14, 2026
Check Point Software Technologies Ltd., the NASDAQ-listed cyber security company headquartered in Tel Aviv, continued to bolster its governance structure in September 2026 as it filed a Form 6-K with the U.S. Securities and Exchange Commission. Th...
Check Point Shareholders Back All Proposals at 2026 Annual Meeting
Sep 2, 2026
Check Point Software Technologies Ltd., a major provider of cyber security solutions globally, protects more than 100,000 organizations with a prevention-first strategy. Its platform spans hybrid networks, multi-cloud infrastructures, digital work...
Check Point Software Delivers Solid Q2 2026 Results and Boosts Share Buybacks
Jul 30, 2026
On July 30, 2026, Check Point Software Technologies reported second-quarter 2026 results showing modest top-line growth and stronger performance in key subscription metrics. Total revenue for the quarter ended June 30, 2026 rose 1% year-on-year to...
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.