Check Point Q4 Earnings: Revenue And EPS Beat, Security Subscriptions Surge, Expands Cybersecurity Offerings Despite Margin Pressure

Cybersecurity provider Check Point Software Technologies CHKP reported fiscal fourth-quarter revenue growth of 6% year-on-year to $703.70 million, topping the analyst consensus estimate of $698.82 million. 

The American Israeli enterprise security solution provider's adjusted EPS of $2.70 beat the analyst consensus estimate of $2.66.

Revenue from Products and licenses grew by 7.8% to $170.6 million, Security subscriptions increased 9.9% year over year to $292.2 million, and Software updates and maintenance rose 0.6% year over year to $240.9 million.

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Margin: Adjusted operating margin declined to 43.5% from 46.5% the prior year. The operating margin declined to 36.1% from 38.0% a year ago as operating expenses surged by 9.2% Y/Y.

The company generated $249.0 million in operating cash flow, compared to $235.8 million a year ago, and held $2.78 billion in cash and equivalents as of December-end.

The fourth quarter results reflect strong 8% revenue growth in its core Quantum Force appliance business, Harmony E-mail solution, and expanded adoption of the Infinity platform, Founder and Chairman Gil Shwed said.

Check Point Software Technologies surged over 27% in the last 12 months.

CHKP Stock Prediction For 2025

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Check Point Software have an average 1-year price target of $202.75, representing an expected downside of 6.49%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Check Point Software, while 2 analysts have bullish ratings. The street high price target from Jefferies is $225.0, while the street low from Citigroup is $190.0.

Price Action: CHKP stock is up 5.76% at $215.64 at the last check Thursday.

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