| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 63 | 13.3x | 17.8x | Around median | |
Growth | 46 | 9.2% | 7.1% | Around median | |
Quality | 95 | 27.8% | 4.5% | Top tier | |
Safety | 70 | 1.5x | 2.6x | Top tier | |
Capital Return | 14 | — | 2.12% | Bottom tier | |
Momentum | 16 | -33.8% | 2.9% | Bottom tier | |
Sentiment | 44 | 23 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Check Point Software Technologies provides cybersecurity solutions focused on proactive prevention and the protection of networks, cloud environments, workspaces, and environments that use artificial intelligence. Its revenue model combines sales of firewall appliances, security subscriptions, and deal-related support services; its emerging portfolio drivers include email security, CTEM, SASE, the AI Defense platform, and AI Network Firewall. Its prevention technologies also rely on Threat Cloud AI, more than 100 artificial intelligence agents, and telemetry data from millions of enforcement points.
In fiscal Q2 2026, revenue reached $674 million, representing 1% year-over-year growth, while gross profit rose from $585 million to $588 million, with a gross margin of 87%. Operating income was $260 million, equivalent to an operating margin of 39%, while GAAP net income was $194 million, down 4% year over year. Non-GAAP net income was $264 million, and adjusted earnings per share reached $2.55, exceeding the analysts' estimate of $2.45 and rising 8% year over year.
Subscription revenue represented $333 million, or about 49% of fiscal Q2 2026 revenue, and grew 12% year over year, while product revenue declined 14% due to weak demand for firewall appliances and execution disruption following changes to the sales organization. Geographically, Europe, the Middle East, and Africa contributed 44% of revenue, the Americas contributed 44%, and Asia-Pacific contributed 12%. On an annual basis, revenue increased from $2.6 billion in fiscal 2024 to $2.7 billion in fiscal 2025, while net income rose from $845.7 million to $1.1 billion and earnings per share increased from $7.46 to $9.62.
The average analyst price target is $146.3, within a wide range of $105 to $188, and the average remains approximately 31% below the 52-week range high of $210.66, reflecting a reassessment tied to appliance weakness and commercial execution disruption. The neutral consensus and the absence of an available price-to-earnings multiple in the provided data indicate that the valuation case depends on a fiscal Q4 2026 recovery and growth in emerging products, while the $105 low-end target remains evidence of execution risk.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Check Point's revenue in fiscal Q2 2026 was approximately $674 million, representing 1% year-over-year growth. The company recorded gross profit of $588 million at an 87% margin and operating income of $260 million at a 39% margin. GAAP net income was $194 million, while non-GAAP net income reached $264 million. Adjusted earnings per share were $2.55 versus analysts' expectations of $2.45.
Subscriptions were the primary growth driver in fiscal Q2 2026, with revenue increasing 12% to $333 million. Combined annual recurring revenue growth for email security, CTEM, and AI security exceeded 40% year over year. Calculated billings for these products also increased 35%, showing that the emerging portfolio is growing far faster than total revenue, which grew 1%. These products support a platform that includes AI Defense and AI Network Firewall.
Product revenue declined 14% in fiscal Q2 2026 due to lower demand for firewall appliances and execution disruption caused by changes to the go-to-market organization. Management said on July 30, 2026, that fiscal Q3 2026 would see a similar trend, with some large deals shifting to Q4. The chief financial officer emphasized that the cause appears to be more internal than a fundamental change in customer behavior, based on improvement in the qualified pipeline and stabilization of the sales team. The company expects product revenue to return to growth in fiscal Q4 2026, but this expectation makes results highly dependent on execution in that quarter.
Automated analysis for informational purposes only — not investment advice.
Check Point announced the launch of AI Network Firewall on July 30, 2026, as part of the AI Defense platform. The product is intended to monitor, control, and protect prompts, agent actions, and model interactions across networks, cloud environments, and SASE. The company connects it to the Threat Cloud AI ecosystem, which uses more than 100 artificial intelligence agents and data from millions of enforcement points. However, the product's standalone financial impact was not specified, so the available quantitative evidence comes from combined annual recurring revenue growth of more than 40% for email security, CTEM, and AI security.
On July 30, 2026, the company maintained its fiscal 2026 guidance unchanged and projected fiscal Q3 2026 revenue of $665 million to $685 million. It also projected subscription revenue of $332 million to $343 million and adjusted earnings per share of $2.43 to $2.53 for that quarter. Management explained that achieving the midpoint of its fiscal-year guidance requires approximately 6.5% growth in fiscal Q4 2026 and revenue of approximately $800 million. The shift in product revenue from an expected decline in Q3 to growth in Q4, along with the closure of deferred deals, will be the most important test of this guidance.
Cash, marketable securities, and deposits totaled $4.2 billion at the end of fiscal Q2 2026. Adjusted free cash flow was $161 million, equivalent to 24% of revenue. During the same quarter, the company repurchased approximately 2.5 million shares for $325 million at an average of $131 per share. It also announced a $2 billion expansion of its share repurchase program and expects to reduce its diluted share count in fiscal Q3 2026 by approximately 1.5 million shares.
