Check Point Software Q4 Earnings Top Estimates, Revenues Increase Y/Y

Check Point Software Technologies Ltd. CHKP reported fourth-quarter 2025 non-GAAP earnings per share (EPS) of $3.40, which beat the Zacks Consensus Estimate by 22.74%. The figure exceeded the company’s prior projection of $2.70-$2.80. The bottom line increased 25.9% year over year.

CHKP’s fourth-quarter revenues of $744.9 million missed the consensus mark by 0.15% and came around $1 million above the midpoint of the previously guided range of $724-$764 million. The top line increased 5.9% year over year.

Check Point Software’s Q4 Details

Security subscription revenues were $325.1 million, up 11.3% year over year and beat the consensus mark by 0.75%. Products and licenses revenues rose a modest 0.7% year over year to $171.8 million, falling short of the consensus estimate by 4.33%.

Total revenues from product and security subscriptions were $496.9 million, up 7.4% year over year. The figure missed the consensus mark for the segment sales by 0.99%.

Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise

Check Point Software Technologies Ltd. price-consensus-eps-surprise-chart | Check Point Software Technologies Ltd. Quote

Software updates and maintenance revenues increased 2.9% year over year to $248 million and surpassed the consensus mark by 1.73%.

As of Dec. 31, 2025, deferred revenues totaled $2.18 billion, up 9% year over year.

Non-GAAP gross profit increased 5.9% year over year to $660 million, and gross margin expanded 10 basis points (bps) to 88.6% from the year-ago quarter.

Non-GAAP operating expenses grew 12.9% to $358 million. As a percentage of revenues, operating expenses expanded 300 bps to 48.1% from the year-ago quarter.

Non-GAAP operating income for the third quarter of 2025 totaled $302.3 million, down 1.3% year over year. The non-GAAP operating margin contracted 300 bps from the year-ago quarter to 40.6% due to higher operating expenses.

CHKP’s Q4 Key Metrics

Calculated billings climbed to $1.04 billion, marking solid 8% growth compared with the prior-year period.

Remaining Performance Obligation (RPO) increased 8% year over year to $2.73 billion, reflecting healthy backlog growth.

CHKP’s Balance Sheet & Cash Flow

Check Point Software exited the fourth quarter with cash and cash equivalents, marketable securities and short-term deposits of $4.3 billion compared with the previous quarter’s $2.8 billion.

The company generated cash worth $310 million from operational activities in the fourth quarter compared with the previous quarter’s $241 million. During the fourth quarter of 2025, the company repurchased approximately 2.2 million shares worth approximately $425 million.

Check Point Software’s Q1 & 2026 Guidance

For the first quarter, Check Point Software projects revenues between $655 million and $685 million and non-GAAP EPS in the range of $2.35-$2.45. The Zacks Consensus Estimate for the first quarter’s top line and EPS is currently pegged at $677.29 million and $2.38, respectively. The company expects adjusted free cash flow to be between $420 million and $460 million.

For 2026, Check Point Software expects revenues in the range of $2.83-$2.95 billion and non-GAAP EPS in the band of $10.05-$10.85. The consensus mark for 2026 revenues and EPS is pinned at $2.89 billion and $10.44, respectively. Adjusted free cash flow is expected to be between $1.15 billion and $1.25 billion.

CHKP’s Zacks Rank & Stocks to Consider

Currently, Check Point Software carries a Zacks Rank #3 (Hold).

MKS Inc. MKSI, Analog Devices ADI and Salesforce CRM are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, MKS sports a Zacks Rank #1 (Strong Buy), while Analog Devices and Salesforce carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

MKS shares have soared 143.6% over the past year. MKSI is scheduled to report its fourth-quarter 2025 results on Feb. 17.

Analog Devices' shares have gained 58.2% over the past year. ADI is scheduled to report its first-quarter fiscal 2026 results on Feb. 18.

Salesforce shares have declined 43.7% over the past year. CRM is scheduled to report its fourth-quarter fiscal 2026 results on Feb. 25.

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