Check Point Software lifts profit outlook as AI-driven cyber threats surge

By Steven Scheer

JERUSALEM, Feb 12 (Reuters) - ‌Check Point ​Software Technologies ​beat fourth-quarter profit expectations on Thursday and said surging demand for protection against AI-driven cyber threats would help lift its 2026 ‌revenue close to $3 billion.

Companies are expected to spend more on cybersecurity ⁠due to concerns that AI will equip hackers with new and more sophisticated ways to ‌attack networks and disrupt businesses.

CEO ‌Nadav Zafrir told reporters: "We're seeing new attack vectors and new capabilities every day ... creating vulnerabilities and threats that are really unprecedented."

"Corporate infrastructure is now vulnerable ​because the very nature of attacks is changing. AI is embedded everywhere."

The Israeli-based network security company reported $3.40 per diluted share, excluding one-off items, for ⁠the October-December quarter, up 26% from $2.70 a year earlier. Revenue grew 6% to $745 million. The results reflect ​a charge of $8 million from foreign exchange effects.

Analysts were expecting $2.77 a share on revenue of $746 million, according to LSEG data.

On Wednesday, ​rival Palo Alto Networks completed its $25 billion ‌purchase of CyberArk to bolster its business in the AI era and said it would dual-list in Tel Aviv.

CHECK POINT ⁠TO SOLELY TRADE ON NASDAQ, CEO SAYS

Asked whether Check Point would follow suit, Zafrir suggested the firm would continue to solely trade on Nasdaq.

"We have our IP here, we ⁠have our R&D here, we have our management here, and we pay taxes here" in ​Israel, he said.

In 2025, revenue grew 6% to $2.73 billion - in line with expectations - while adjusted earnings per share rose 30% to $11.89, above the consensus estimate of $11.28.

For 2026, Check Point ‌sees revenue of $2.83-$2.95 billion and adjusted earnings per share of $10.05-$10.85, compared with expectations of $2.89 billion in revenue and $10.46 of EPS ‌in an LSEG poll of analysts. In the first quarter, it projects revenue ⁠of $655-$685 million and adjusted EPS of $2.35-$2.45.

Check ‌Point said it bought ​back about 2.2 million of its shares for $425 million in the fourth quarter.

(Reporting by Steven Scheer; Editing by Anil D'Silva and ‌Bernadette Baum)

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