Check Point Software Technologies (CHKP) Q4 2025 earnings summary

Executive summary

• Q4 and full-year 2025 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 acquisitions including Cyclops, Lakera, Rotate, and Cyata.

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

• Focused on strategic customers, new logo acquisition, and deeper enterprise penetration, with strengthened leadership and go-to-market execution.

• Security subscription revenues rose 11% in Q4 and 10% for the full year, reflecting strong customer adoption.

Financial highlights

• Q4 2025 revenues: $745M (+6% YoY); full-year 2025 revenues: $2,725M (+6% YoY).

• Q4 non-GAAP EPS: $3.40 (+26% YoY), including a $0.52 one-time tax benefit; full-year non-GAAP EPS: $11.89 (+30% YoY), including a $1.90 tax benefit.

• Q4 non-GAAP operating income: $302M (41% margin); Q4 GAAP operating income: $233M (31% margin).

• Operating cash flow: $310M in Q4 (+24% YoY); $1,234M for the year (+17% YoY), including a $66M one-time tax payment.

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

Outlook and guidance

• FY2026 revenue guidance: $2.83B–$2.95B (4–8% growth); subscription revenue expected to grow 10–14%.

• Non-GAAP EPS guidance for 2026: $10.05–$10.85; operating margin expected at 39–40%.

• Adjusted free cash flow for 2026 projected at $1.15B–$1.25B.

• Gross margin expected to decline by ~1 point in 2026 due to memory price increases, mainly in H2.

• 2026 tax rate estimated at 16–17% due to new global minimum tax; potential $50M benefit from Israeli R&D incentive program.