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1. Company Snapshot

1.a. 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 provides Check Point Infinity Architecture, a cyber security architecture that protects against 5th and 6th generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile.The company also offers security gateways and software platforms that support small and medium sized business (SMB) to large enterprise data center and telco-grade environments; and threat prevention technologies and zero-day protections.In addition, the company provides cloud network security, security and posture management, cloud workload protection, and cloud web application protection for web applications and APIs; and Check Point Harmony that delivers endpoint and secure connectivity for remote user access.


Further, the company provides technical customer support programs and plans; professional services in implementing, upgrading, and optimizing Check Point products comprising design planning and security implementation; and certification and educational training services on Check Point products.It sells its products through multiple distribution channels, including distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers.Check Point Software Technologies Ltd.


was incorporated in 1993 and is headquartered in Tel Aviv, Israel.

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1.b. Last Insights on CHKP

Check Point Software Technologies Ltd.'s recent performance was driven by its impressive Q3 earnings, with revenue and EPS beating expectations. The company's AI-first security platform, strengthened by recent acquisitions of Veriti and Lakera, positions it for leadership in next-gen enterprise security. Its focus on AI-first security and Zero Trust platform leadership is expected to drive growth as enterprise AI adoption accelerates. With sector-leading profitability, robust cash flow, and zero debt, the company is well-positioned for long-term success, with improved operating leverage and billings growth anticipated.

1.c. Company Highlights

2. Check Point's Strong Q3 Earnings Beat Expectations

Check Point Software Technologies Ltd. (CHKP) reported a robust third quarter, with revenue growing 7% to $678 million, exceeding the midpoint guidance by $6 million. Non-GAAP EPS reached $3.94 per diluted share, significantly beating estimates of $2.45, driven by a one-time tax benefit of $1.47. Calculated billings grew 20% year-over-year to $672 million, driven by demand across its portfolio, with services billing up 21%. The company's SASE product saw ARR growth of over 40% in Q3, driven by its hybrid mesh approach and AI capabilities.

Publication Date: Oct -29

📋 Highlights
  • Calculated Billings Growth:: 20% YoY to $672M, driven by portfolio demand.
  • Non-GAAP EPS Exceeds Guidance:: $3.94/share, boosted by $1.47/share one-time tax benefit.
  • 2025 Revenue Guidance Raised:: Midpoint increased, reflecting confidence in 6% YoY growth trajectory.
  • SASE ARR Expansion:: Over 40% Q3 growth, fueled by hybrid mesh strategy and AI capabilities.
  • 2026 Margin Headwinds:: $50–60M FX expenses and 0.5-point margin impact from Lakera/Cyberint acquisitions.

Revenue Growth and Guidance

The company raised its midpoint for 2025 revenue guidance, expecting revenue between $2.705 billion and $2.745 billion, representing 6% growth year-over-year. For Q4, it expects revenue between $724 million to $764 million, representing 6% growth at the midpoint. The guidance suggests a steady growth trajectory, driven by the company's diversified portfolio and investments in SASE and AI security.

Operational Highlights and Investments

Check Point has made significant investments in its AI security platform, including the acquisition of Lakera, an AI-native security leader. The company is also investing in its SASE product, with plans to upscale and deploy in larger enterprises in 2026. The company has made leadership changes, including appointing new presidents for Americas Sales and Technical Sales, and a Chief Marketing Officer, which are expected to take effect in Q1 2026.

Valuation and Growth Prospects

With a P/E Ratio of 25.41 and an EV/EBITDA of 21.78, the stock appears to be fairly valued, considering its growth prospects. Analysts estimate next year's revenue growth at 5.5%, which is slightly lower than the current year's growth rate. The company's strong ROIC of 19.49% and ROE of 30.64% indicate a strong return on investments. The stock's Free Cash Flow Yield of 5.2% is also attractive, suggesting a healthy cash generation profile.

Margins and Expenses

The company expects a headwind of $50-60 million from FX rates in 2026, and the Lakera acquisition will also have an impact on margins. However, the company remains confident in its trajectory and growth prospects, driven by its diversified portfolio and investments in SASE and AI security. The price increase for subscription firewalls, effective July 1, is expected to contribute to growth.

3. NewsRoom

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Check Point Software Announces Pricing of Upsized Private Offering of $1.75 Billion of 0.00% Convertible Senior Notes due 2030

Dec -04

Source: globenewswire.com

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Check Point Software Announces Proposed Private Offering of $1.5 Billion of 0.00% Convertible Senior Notes due 2030

Dec -02

Source: globenewswire.com

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The AI Transformation Has Arrived. Now Comes the Hard Part: Securing It

Dec -02

Source: globenewswire.com

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Bank Julius Baer & Co. Ltd Zurich Sells 354 Shares of Check Point Software Technologies Ltd. $CHKP

Nov -23

Source: defenseworld.net

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Check Point Software Collaborates with Microsoft to Deliver Enterprise-Grade AI Security for Microsoft Copilot Studio

Nov -18

Source: globenewswire.com

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Check Point Software Technologies Ltd. $CHKP Shares Sold by AE Wealth Management LLC

Nov -17

Source: defenseworld.net

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Kranot Hishtalmut Loads Up on CheckPoint Software Technologies Stock With Nearly 87,000 Shares

Nov -14

Source: fool.com

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ABN Amro Investment Solutions Makes New $3.98 Million Investment in Check Point Software Technologies Ltd. $CHKP

Nov -14

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Network and Data Security Products

Expected Growth: 5.0%

Check Point's network and data security products growth is driven by increasing cyber threats, rising demand for cloud security, and expanding customer base. The company's strong brand, innovative solutions, and strategic acquisitions, such as Infinity, contribute to its 5.0% growth. Its diversified product portfolio and growing demand for consolidated security solutions also fuel growth.

7. Detailed Products

Next-Generation Firewalls (NGFW)

Check Point's NGFW provides advanced threat prevention, including intrusion prevention, anti-malware, and sandboxing, to protect against sophisticated cyber threats.

Threat Emulation

Check Point's Threat Emulation solution provides sandboxing and threat analysis to detect and prevent unknown threats, including zero-day attacks and advanced persistent threats (APTs).

Data Loss Prevention (DLP)

Check Point's DLP solution helps organizations prevent sensitive data from being leaked or stolen, by monitoring and controlling data in use, in motion, and at rest.

Cloud Security

Check Point's Cloud Security solution provides a range of security capabilities, including network security, threat prevention, and compliance, to protect cloud-based infrastructure and applications.

Security Management

Check Point's Security Management solution provides a centralized management platform for security administrators to manage and monitor their security infrastructure, including firewalls, intrusion prevention systems, and threat prevention solutions.

Endpoint Security

Check Point's Endpoint Security solution provides advanced threat prevention and protection for endpoints, including laptops, desktops, and mobile devices.

Remote Access

Check Point's Remote Access solution provides secure remote access to enterprise networks and applications, for remote users and branch offices.

8. Check Point Software Technologies Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Check Point Software Technologies Ltd. offers a unique and comprehensive cybersecurity solution that integrates multiple products and services, making it difficult for customers to switch to substitute products. The company's solutions are highly customized to meet specific customer needs, reducing the threat of substitutes.

Bargaining Power Of Customers

Check Point's customers are primarily large enterprises and organizations, which have some bargaining power due to their size and purchasing volume. However, the company's solutions are highly regarded for their quality and effectiveness, which limits the customers' ability to negotiate prices and terms.

Bargaining Power Of Suppliers

Check Point has a diverse and global supply chain, which reduces its dependence on any single supplier. The company also has a strong brand and market position, which gives it negotiating power with suppliers.

Threat Of New Entrants

The cybersecurity industry is highly competitive and requires significant investment in research and development, sales and marketing, and customer support. New entrants face significant barriers to entry, including the need for a strong brand, extensive distribution networks, and a comprehensive product portfolio.

Intensity Of Rivalry

The cybersecurity industry is highly competitive, with many established players, including Palo Alto Networks, Cisco Systems, and Fortinet. Check Point competes with these companies on price, product features, and customer support, which drives intense rivalry and innovation in the industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 1.14%
Debt Cost 4.28%
Equity Weight 98.86%
Equity Cost 7.69%
WACC 7.65%
Leverage 1.16%

11. Quality Control: Check Point Software Technologies Ltd. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
IONOS

A-Score: 4.9/10

Value: 3.5

Growth: 7.8

Quality: 6.6

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Check Point

A-Score: 4.5/10

Value: 1.9

Growth: 6.1

Quality: 8.8

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Wix

A-Score: 4.0/10

Value: 3.6

Growth: 9.0

Quality: 6.4

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
CyberArk

A-Score: 4.0/10

Value: 2.0

Growth: 6.0

Quality: 3.1

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Cellebrite DI

A-Score: 3.5/10

Value: 2.2

Growth: 5.2

Quality: 5.2

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Darktrace

A-Score: 2.7/10

Value: 0.0

Growth: 3.8

Quality: 7.4

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

193.06$

Current Price

193.06$

Potential

-0.00%

Expected Cash-Flows