Check Point Software Technologies (NASDAQ:CHKP) Posts Quarterly Earnings Results, Beats Expectations By $0.63 EPS

12 Feb 2026, 18:00 by Sarita Garza · The Markets Daily

Check Point Software Technologies (NASDAQ:CHKP – Get Free Report) issued its quarterly earnings results on Thursday. The technology company reported $3.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.77 by $0.63, Briefing.com reports. Check Point Software Technologies had a net margin of 37.62% and a return on equity of 37.91%. The firm had revenue of $744.90 million for the quarter, compared to the consensus estimate of $746.40 million. During the same quarter in the previous year, the company earned $2.70 EPS. The company’s revenue for the quarter was up 5.9% on a year-over-year basis.

Here are the key takeaways from Check Point Software Technologies’ conference call:

Check Point is repositioning to lead the AI-era of cybersecurity via four strategic pillars — hybrid mesh, workspace, exposure management, and AI security — and announced targeted acquisitions (Cyclops, Cyada, Lakera) plus the Rotate team to accelerate those capabilities.
Solid Q4 and FY results: Q4 revenue of $745M (+6% YoY), FY revenue $2.725B, subscription revenue up 11%, non‑GAAP EPS of $3.40 beat guidance, and a strong balance sheet (~$4.3B cash plus ~$1.8B net from a $2B convertible offering) alongside $425M of buybacks.
2026 guidance implies modest top‑line momentum (revenues guided to $2.83B–$2.95B, midpoint ~6% growth) — management highlighted subscription acceleration but total revenue guidance shows no immediate acceleration, which could disappoint investors.
Reported EPS outperformance was meaningfully helped by one‑time tax items (~$0.52 in Q4 and ~$1.90 for the year); excluding those benefits, EPS beats were modest (~$0.08–$0.09).
Near‑term margin headwinds: management expects ~1 point gross‑margin pressure from higher memory costs in 2026, a potential ~1–1.5 point operating‑margin FX headwind if current rates persist, plus ~0.5 point margin dilution from recent acquisitions.

Check Point Software Technologies Stock Down 7.6%

Shares of CHKP stock traded down $13.39 during trading on Thursday, hitting $163.08. The company had a trading volume of 2,845,803 shares, compared to its average volume of 1,338,413. The stock has a market capitalization of $17.94 billion, a price-to-earnings ratio of 17.89, a price-to-earnings-growth ratio of 2.91 and a beta of 0.58. The stock’s 50-day moving average is $185.72 and its two-hundred day moving average is $191.15. Check Point Software Technologies has a 52 week low of $161.00 and a 52 week high of $234.35.

Trending Headlines about Check Point Software Technologies

Here are the key news stories impacting Check Point Software Technologies this week:

Positive Sentiment: Q4 beat on the bottom line — non‑GAAP EPS of $3.40 topped consensus and GAAP/non‑GAAP EPS were materially higher year-over-year; security subscription revenue grew double digits (about +11%), and calculated billings and RPO also increased, supporting recurring revenue momentum. Cyber security firm Check Point Software Q4 profit tops estimates
Positive Sentiment: Management is prioritizing AI security and announced three acqui sitions (Cyata, Cyclops, Rotate) to expand AI agent discovery, exposure management and MSP offerings — a strategic move that could boost long‑term product differentiation as enterprises adopt AI. Check Point Software Reports Fourth Quarter and 2025 Full Year Results
Neutral Sentiment: Balance-sheet / capital actions: the company raised cash via convertible notes (about $1.8B net), increased cash reserves to ~$4.34B and executed large share repurchases (~$1.4B in 2025). These moves provide flexibility but add financing complexity (convertible notes/capped calls). Check Point Software Reports Fourth Quarter and 2025 Full Year Results
Negative Sentiment: Revenue essentially flat to expectations — Q4 revenue was ~$745M versus analysts’ ~$746M, which may have cooled enthusiasm since the EPS beat was partly driven by one‑time tax benefits. Investors often discount beats that include tax‑settlement gains. Check Point (CHKP) Reports Q4 Earnings: What Key Metrics Have to Say
Negative Sentiment: Profit quality and margins: GAAP operating income declined vs. prior quarter and the company disclosed about $0.52 of EPS benefit in Q4 (and larger year benefit) from tax settlements and provisioning — raising questions about underlying operational leverage as R&D and S&M spend stepped up and acquisition-related costs mount. Check Point Software Technologies Ltd. Reports Fourth Quarter and Full Year 2025 Financial Results
Negative Sentiment: Technicals and sentiment: the stock is trading below its 50- and 200‑day moving averages and is near its 52‑week low, which can amplify downside on a mixed print as momentum/technicals trigger selling. (See the company release and market coverage above for full figures.)

Hedge Funds Weigh In On Check Point Software Technologies

Several institutional investors and hedge funds have recently bought and sold shares of the stock. CIBC Private Wealth Group LLC boosted its holdings in Check Point Software Technologies by 1.6% in the fourth quarter. CIBC Private Wealth Group LLC now owns 555,741 shares of the technology company’s stock valued at $103,123,000 after acquiring an additional 8,933 shares in the last quarter. Earnest Partners LLC lifted its holdings in shares of Check Point Software Technologies by 9.2% during the fourth quarter. Earnest Partners LLC now owns 767,486 shares of the technology company’s stock valued at $142,415,000 after purchasing an additional 64,440 shares in the last quarter. Loomis Sayles & Co. L P grew its stake in shares of Check Point Software Technologies by 4.6% in the fourth quarter. Loomis Sayles & Co. L P now owns 63,849 shares of the technology company’s stock worth $11,848,000 after acquiring an additional 2,787 shares during the period. Brown Brothers Harriman & Co. lifted its holdings in shares of Check Point Software Technologies by 28.6% during the 4th quarter. Brown Brothers Harriman & Co. now owns 423 shares of the technology company’s stock valued at $78,000 after buying an additional 94 shares during the period. Finally, Raiffeisen Bank International AG increased its position in shares of Check Point Software Technologies by 12.4% during the 4th quarter. Raiffeisen Bank International AG now owns 986 shares of the technology company’s stock valued at $185,000 after purchasing an additional 109 shares during the last quarter. 98.51% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Morgan Stanley set a $197.00 target price on Check Point Software Technologies in a research note on Wednesday, January 28th. Citigroup reduced their price objective on shares of Check Point Software Technologies from $210.00 to $200.00 and set a “neutral” rating for the company in a research report on Tuesday, January 13th. Truist Financial set a $225.00 target price on shares of Check Point Software Technologies in a research report on Tuesday, January 20th. Cantor Fitzgerald reissued a “neutral” rating and set a $220.00 target price on shares of Check Point Software Technologies in a research note on Wednesday, October 22nd. Finally, Stifel Nicolaus set a $211.00 target price on Check Point Software Technologies in a research report on Tuesday, October 28th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat.com, Check Point Software Technologies presently has a consensus rating of “Moderate Buy” and a consensus target price of $226.62.

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About Check Point Software Technologies

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Check Point Software Technologies Ltd. is an Israeli-founded cybersecurity company that develops, markets and supports a broad portfolio of network, cloud and endpoint security products. Founded in 1993, the company was an early pioneer of stateful inspection firewall technology and later developed a modular “software blade” approach that allowed customers to combine protection capabilities. Check Point’s product set spans physical and virtual security appliances, software and cloud-native services designed to prevent cyberattacks, protect data and simplify security management for enterprises and service providers.