Check Point Software Technologies (CHKP) Q4 2025 earnings summary

Executive summary

• Q4 and FY2025 revenues and EPS exceeded projections, driven by strong demand for emerging technologies, robust global growth, and consistent execution.

• Expanded platform with new pillars in AI security and exposure management, supported by organic growth and targeted acquisitions including Rotate, Cyclops, Cyata, and Lakera.

• Enhanced financial flexibility via a $2 billion zero coupon convertible notes offering, with net proceeds of $1.8 billion.

• Focused on strategic customers, new logo acquisition, and deeper enterprise penetration, positioning to lead in AI-driven cybersecurity.

• Share repurchases totaled $1.4 billion in 2025, including 2.2 million shares for $425 million in Q4.

Financial highlights

• Q4 2025 revenues: $745 million, up 6% year-over-year, exceeding midpoint projections by $1 million.

• Q4 non-GAAP EPS: $3.40, up 26%, including a $0.52 tax benefit; GAAP EPS: $2.81, up 22%.

• Full-year 2025 revenues: $2.725 billion, up 6% year-over-year, $15 million above projections.

• Full-year non-GAAP EPS: $11.89, up 30%, including a $1.90 tax benefit; GAAP EPS: $9.62, up 29%.

• Operating cash flow for FY2025: $1.234 billion, up 17% year-over-year.

Outlook and guidance

• FY2026 revenue guidance: $2.83–$2.95 billion (4–8% growth); Q1 2026 revenue: $655–$685 million.

• Subscription revenue projected to grow 10–14% in 2026, with a midpoint of 12%.

• Non-GAAP EPS for 2026 expected between $10.05–$10.85; GAAP EPS $2.58 lower.

• Adjusted free cash flow for 2026 expected at $1.15–$1.25 billion.

• Operating margin guidance for 2026 is 39–40%, factoring in memory cost headwinds and government grants.

• Tax rate for 2026 estimated at 16–17% due to new OECD rules; potential $50 million benefit from Israeli R&D incentive program.