Check Point Software Technologies Ltd
NASDAQ:CHKP
Check Point Software Technologies Ltd
Check Point Software Technologies Ltd., a stalwart in the realm of cybersecurity, was founded in 1993 in Ramat Gan, Israel. It emerged during a pivotal moment when the internet was evolving from a novel curiosity into a critical infrastructure for business and society. Stepping beyond the embryonic stages of the internet, Check Point was at the vanguard, crafting solutions to protect the nascent digital landscape against evolving threats. The company's inception was marked by its pioneering "Stateful Inspection" technology, which revolutionized network security by efficiently inspecting data packets traversing digital boundaries. This innovation laid the groundwork for what would become a comprehensive suite of cybersecurity solutions.
Check Point's core business model centers around providing robust cybersecurity defenses through its integrated, multi-layered approach—often conceptualized as building an impregnable digital fortress. Its primary revenue streams come from selling software and hardware products like firewalls and threat prevention suites and from offering subscription-based services such as security updates and critical threat intelligence. With a solid global presence and a client portfolio ranging from small businesses to massive multinational enterprises, Check Point generates a steady, recurring flow of income through licensing agreements and customer renewals. The company remains agile, constantly advancing its research and development to anticipate future threats, ensuring its place as a leader in the cybersecurity sector while relentlessly defending the digital infrastructures of its clients.
Check Point Software Technologies Ltd., a stalwart in the realm of cybersecurity, was founded in 1993 in Ramat Gan, Israel. It emerged during a pivotal moment when the internet was evolving from a novel curiosity into a critical infrastructure for business and society. Stepping beyond the embryonic stages of the internet, Check Point was at the vanguard, crafting solutions to protect the nascent digital landscape against evolving threats. The company's inception was marked by its pioneering "Stateful Inspection" technology, which revolutionized network security by efficiently inspecting data packets traversing digital boundaries. This innovation laid the groundwork for what would become a comprehensive suite of cybersecurity solutions.
Check Point's core business model centers around providing robust cybersecurity defenses through its integrated, multi-layered approach—often conceptualized as building an impregnable digital fortress. Its primary revenue streams come from selling software and hardware products like firewalls and threat prevention suites and from offering subscription-based services such as security updates and critical threat intelligence. With a solid global presence and a client portfolio ranging from small businesses to massive multinational enterprises, Check Point generates a steady, recurring flow of income through licensing agreements and customer renewals. The company remains agile, constantly advancing its research and development to anticipate future threats, ensuring its place as a leader in the cybersecurity sector while relentlessly defending the digital infrastructures of its clients.
Revenue: Q4 revenue was $745 million, up 6% year-over-year and $1 million above the midpoint of projections. Full-year revenue reached $2.725 billion, $5 million above the original midpoint.
Subscription Growth: Subscription revenue grew 11% in Q4, with emerging product areas like email security, SASE, and ERM achieving over 40% ARR growth.
EPS: Q4 GAAP EPS was $2.81 (up 22% YoY); full-year GAAP EPS was $11.89, exceeding guidance, with notable one-time tax benefits included.
Operating Margins: Operating margin guidance for 2026 is 39–40%, accounting for cost headwinds from memory prices and currency effects.
Price Increases: Recent price hikes in both subscription and hardware will benefit revenue primarily from Q2 2026 onward; initial Q1 headwinds expected for product revenue.
Cash Position & Buybacks: Ended the year with $4.3 billion in cash and completed a $2 billion convertible notes offering; repurchased $425 million in shares.
M&A Strategy: Continued acquisitions, especially in AI security and exposure management, with minimal near-term revenue but some margin dilution.
2026 Guidance: Full-year revenue projected at $2.83–2.95 billion (midpoint 6% growth); subscription revenues expected to grow 10–14%, and adjusted free cash flow guidance of $1.15–1.25 billion.
