Company Reports

Check Point's second-quarter numbers were in line with FactSet consensus; however, third-quarter guidance was below. Shares fell 8% on July 30.

Check Point Software Technologies is a leading vendor in the cybersecurity market. It generates revenue from selling products, licenses, and subscriptions to protect networks, cloud environments, endpoints, and mobile users. Check Point has transformed from its roots as a firewall pioneer into an enterprisewide security provider.

Check Point Software Technologies' first-quarter earnings release was disappointing, as second-quarter guidance missed FactSet consensus and 2026 revenue guidance was cut. Shares fell 16% on April 30.

Check Point's fourth quarter was mixed, with 2026 guidance indicating another year of 6% growth at the midpoint. Shares fell 7% on Feb. 12.

Check Point's third-quarter calculated billings grew an impressive 20% while fourth-quarter guidance was a little light versus FactSet consensus. Shares were up 8% intraday.

Check Point Software Technologies is a leading vendor in the cybersecurity market. It generates revenue from selling products, licenses, and subscriptions to protect networks, cloud environments, endpoints, and mobile users. Check Point has transformed from its roots as a firewall pioneer into an enterprisewide security provider.

Check Point's second-quarter headline numbers and third-quarter guidance were in line with FactSet consensus. However, shares fell 15% on stagnant subscriptions, billings, and remaining performance obligation growth.

Check Point's first-quarter 2025 results were slightly better than FactSet consensus and 2025 guidance was confirmed. Nevertheless, shares fell 4%.

Check Point Software Technologies is a leading vendor in the cybersecurity market. It generates revenue from selling products, licenses, and subscriptions to protect networks, cloud environments, endpoints, and mobile users. Check Point has transformed from its roots as a firewall pioneer into an enterprisewide security provider.

Check Point shares rose 7% as fourth-quarter EPS slightly beat FactSet consensus. We think the market was reacting primarily to strong bookings growth, evidence of recovery in the firewall appliance business, and new management now prioritizing the go-to-market strategy.

Check Point Software Technologies is a leading vendor in the cybersecurity market. It generates revenue from selling products, licenses, and subscriptions to protect networks, cloud environments, endpoints, and mobile users. Check Point has transformed from its roots as a firewall pioneer into an enterprisewide security provider.

Check Point shares plunged nearly 15% despite posting third-quarter revenue and EPS in line with FactSet consensus and guidance. We think the market was reacting to softer growth in billings and security subscription revenue.

Narrow-moat Check Point Software Technologies reported second-quarter numbers that were broadly in line with FactSet consensus. However, future business indicators are improving with 10% growth in billings, three large deals signed in the quarter totaling $130 million in bookings, and a return to growth in the product line with good demand for the new Quantum Force gateways. Shares were up around 6% intraday in response. We don’t expect to make a material change to our $155 per share fair value estimate. At current levels, the shares look fairly valued.

Check Point Software Technologies is a leading vendor in the cybersecurity market. It generates revenue from selling products, licenses, and subscriptions to protect networks, cloud environments, endpoints, and mobile users. Check Point has transformed from its roots as a firewall pioneer into an enterprisewide security provider.

Narrow-moat Check Point Software Technologies reported first-quarter numbers that were slightly above FactSet consensus and the midpoints of guidance on revenue and EPS. However, on the call management indicated customers are still hesitant and it was not yet seeing budgets being opened for major purchases. This is leading to a more competitive environment with at least one major competitor announcing an aggressive pricing strategy. Consequently, an uptick in sales growth is more likely to be seen in the second half of fiscal 2024. Shares declined around 4% intraday in a down day for most of the sector. We don’t expect to make a material change to our $150 fair value estimate. At current levels, the shares look fairly valued.

Narrow-moat Check Point Software Technologies reported fourth-quarter 2023 numbers that were above FactSet consensus and slightly above the EPS guidance range. Overall, total revenue growth remained modest at 4% as 15% growth in subscriptions was dampened by declining product sales (firewalls). However, positive momentum was evident this quarter as product orders increased by double digits, which should return product revenue growth to positive levels in the second half of 2024. Furthermore, new business growth for the group was in double digits following three to four quarters of declines. Shares finished up 1% intraday. We don’t expect to make a material change to our $150 fair value estimate. Shares have rallied in recent months and now look fairly valued.

Narrow-moat Check Point Software Technologies reported third-quarter numbers that were slightly above the FactSet consensus and company guidance. Revenue was above the midpoint and earnings per share came in at the very top end of the guidance ranges. Overall, total revenue growth remained modest at 3% as customers continued to delay refreshing their firewall appliances, which resulted in product and license revenue declining 14%. We are updating our model for the latest developments but do not anticipate a material change to our $150 fair value estimate. At current levels, the shares look undervalued.

Narrow-moat Check Point Software Technologies reported second-quarter numbers that were slightly above FactSet consensus and guidance. Second-quarter revenue of $589 million was up 3% versus 2022 with security subscriptions up 14%, and software updates/maintenance up 2%, but products and licenses were down 12%. Guidance for 2023 was confirmed for revenue of $2.34 billion-$2.51 billion and non-GAAP EPS of $7.70-$8.30 (GAAP EPS $6.48-$$7.08). Third-quarter guidance is revenue of $570 million-$605 million with non-GAAP EPS of $1.97-$2.07 (GAAP EPS $1.62-$1.72). Shares closed up 2.6% on the day. We don’t expect to make a material change to our forecast or $150 fair value estimate. At current levels, shares look moderately undervalued.

We are initiating coverage on Check Point Software Technologies with a narrow moat rating and $150 fair value estimate. Our fair value estimate is equivalent to a P/E multiple of 19 times, slightly above its historical average. We are slightly below FactSet consensus on our near-term estimates, yet our fair value estimate is higher than the stock price and consensus sell-side target price. We surmise that we are more optimistic than the market on the success of Check Point’s Infinity cybersecurity platform. Consequently, at current levels the shares look undervalued with a 4-star rating.

Check Point Software Technologies is a leading vendor in the cybersecurity market. It generates revenue from selling products, licenses, and subscriptions to protect networks, cloud environments, endpoints, and mobile users. Check Point has transformed from its roots as a firewall pioneer into an enterprisewide security provider.