Check Point Software Technologies (CHKP) Q4 2025 earnings summary

Executive summary

• Achieved solid Q4 and full-year 2025 results, with 6% revenue growth and EPS exceeding projections, driven by strong demand for emerging technologies and global growth.

• 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 go-to-market strategy, focusing on strategic customers, new logo acquisition, and deeper enterprise penetration.

• Strengthened financial flexibility with a $2 billion zero coupon convertible notes offering and robust cash position.

• Positioned to lead in AI-driven cybersecurity, with a proactive prevention-first approach and four strategic solution pillars.

Financial highlights

• Q4 2025 revenues grew 6% year-over-year to $745 million; full-year revenues reached $2.725 billion, both exceeding midpoint projections.

• Q4 non-GAAP EPS was $3.40, up 26% year-over-year, including a $0.52 tax benefit; full-year non-GAAP EPS was $11.89, up 30%, including a $1.90 tax benefit.

• Deferred revenues grew 9% to $2.18 billion; calculated billings for Q4 totaled $1.039 billion, up 8% year-over-year.

• Operating cash flow in Q4 was $310 million, up 24% year-over-year; annual operating cash flow grew 17% to $1.234 billion.

• Ended 2025 with $4.3 billion in cash, marketable securities, and short-term deposits.

Outlook and guidance

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

• Subscription revenue for 2026 expected to grow 10%-14%, with a midpoint of 12%.

• Non-GAAP EPS guidance for 2026 is $10.05-$10.85; operating margin expected between 39%-40%.

• Adjusted free cash flow for 2026 projected at $1.15 billion-$1.25 billion.

• Anticipates a 1-point gross margin impact from memory price increases, mainly in H2 2026.