Why Is Check Point Stock Gaining Thursday?
Cybersecurity provider Check Point Software Technologies Ltd. (NASDAQ:CHKP) stock gained on Thursday after it reported fiscal fourth-quarter results.
The Tel Aviv-based company reported quarterly revenue growth of 6% year over year to $744.90 million, missing the analyst consensus estimate of $746.21 million.
EPS Beats Expectations Strongly
Adjusted EPS of $3.40 beat the analyst consensus estimate of $2.77.
Revenue from Products and licenses grew by 0.70% Y/Y to $171.8 million.
Security subscriptions increased 11.26% Y/Y to $325.1 million.
Software updates and maintenance rose 2.95% Y/Y to $248.0 million.
Margins Contract on Pricing Pressure
Adjusted operating margin declined to 40.6% from 43.5% the prior year, signifying pricing pressures.
The operating margin declined to 31.3% from 36.1%.
The company generated $310 million in operating cash flow, compared to $249 million a year ago, and held $4.34 billion in cash and equivalents as of December 31, 2025.
During the fourth quarter of 2025, the company repurchased 2.2 million shares for a total of $425 million, which includes $100 million of share repurchases executed in connection with the convertible notes offering.
CEO Highlights Platform Adoption Trends
CEO Nadav Zafrir attributed the company's resilient performance throughout the year to sustained customer adoption across its Hybrid Mesh Network and Workspace platforms.
He emphasized execution across the company's four strategic pillars—Hybrid Mesh, Workspace, and Exposure Management—while integrating AI-driven security throughout the portfolio.
He added that the announced acquisition of Cyata strengthens the company's AI security capabilities by expanding its stack to deliver comprehensive discovery, governance, and control of AI agents as organizations accelerate their AI adoption.
CHKP Price Action: Check Point Software shares were up 1.71% at $179.49 during premarket trading on Thursday.
Photo via Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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