CHKP changes
Pick any two versions below to diff them.
- Price
- $142.28 → $146.58(+3.0%)
- Risks
- Product sales fall. Product revenue fell 14% in Q2 2026 and 19% in Q3 2026 after changes to the sales model. Partners reported lower bookings and some customer losses in July 2026. If firewall sales do not recover, future subscription and maintenance revenue also grows more slowly. The sales reorganization and a new Chief Revenue Officer from May 2026 add execution risk. The about 300 new sellers add cost in 2026, and management expects their benefit only in the first half of 2027. Operating expenses rose 13% in Q2 2026. In Q3 2026, non-GAAP operating expenses rose 4%, after a $25 million benefit from Israeli research grants. Competition is strong. Platform companies such as Palo Alto Networks, Fortinet and CrowdStrike compete for firewall, cloud and AI security budgets. removed: Several analysts prefer these rivals for AI security. Check Point has its main offices and much of its research staff in Israel. A war in the region can disrupt operations, and it can make some customers less willing to buy. Security flaws in its own products, such as the VPN flaw disclosed in June 2026 and the two gateway and management flaws of September 2026 that attackers used, can hurt customer trust. Higher memory prices also lower the gross margin on appliances.
- Recent events
- Nov 2, 2026: Check Point reported Q3 2026 results. Revenue was $670 million, down 1%. Security subscription revenue was $339 million, up 11%, and product and license revenue fell 19% to $106 million. Non-GAAP EPS was $2.49, up 1% without a one-time tax benefit in Q3 2025, and adjusted free cash flow was $258 million. Check Point bought back about 2.5 million shares for about $325 million. It cut its 2026 revenue outlook to $2,732 million to $2,782 million from $2,770 million to $2,850 million and narrowed its non-GAAP EPS outlook to $10.25 to $10.37. For Q4 2026, it expects revenue of $720 million to $770 million. Oct 1, 2026: Check Point said that it will report Q3 2026 results on November 2, 2026. Sep 22, 2026: Check Point said that attackers used two flaws in its Security Gateway and Security Management products. It had released a fix for the first flaw on September 9, 2026, and it released a fix for the second flaw, a new zero-day flaw in Security Management, with the advisory. Sep 14, 2026: Check Point appointed Yoram Tietz, a Senior Advisor at General Atlantic and the former Managing Partner of EY Israel, to its Board of Directors. removed: Sep 11, 2026: Wedbush downgraded Check Point, together with Fortinet, Varonis and Telos, and named CrowdStrike and Palo Alto Networks as its preferred AI cybersecurity stocks. Jul 30, 2026: Check Point reported Q2 2026 results. Revenue was $674 million, up 1%. Security subscription revenue was $333 million, up 12%, and product revenue fell 14%. Non-GAAP EPS was $2.55, up 8%. Check Point bought back about 2.5 million shares for about $325 million. Management kept its full-year guidance and said it will hire about 300 more sellers, with the benefit expected in the first half of 2027. It also launched an AI network firewall. Jul 15, 2026: Raymond James removed: downgraded Check Point to Market Perform from Outperform. It said that partner checks showed lower bookings, a weak second-half pipeline and some customer losses, and that management changes disrupted sales. Jun 8, 2026: Check Point disclosed a security flaw in the Remote Access VPN and Mobile Access functions of some gateway configurations. It released a software update and said that attackers used the flaw to get into some customer environments. May 11, 2026: Check Point's board added $2.0 billion to the share buyback program. Apr 30, 2026: Check Point reported Q1 2026 results. Revenue was $668 million, up 5%, and non-GAAP EPS was $2.50, up 13%. It cut its 2026 revenue outlook to $2.77 billion to $2.85 billion from $2.83 billion to $2.95 billion because firewall appliance sales fell after changes to its sales model. It kept its non-GAAP EPS outlook of $10.05 to $10.85. Sherif Seddik became Chief Revenue Officer. The stock fell about 14% in early trading.