Cybersecurity provider Check Point Software Technologies (NASDAQ:CHKP) reported fiscal fourth-quarter revenue growth of 6% year-on-year to $703.70 million, topping the analyst consensus estimate of $698.82 million.
The American Israeli enterprise security solution provider's adjusted EPS of $2.70 beat the analyst consensus estimate of $2.66.
Revenue from Products and licenses grew by 7.8% to $170.6 million, Security subscriptions increased 9.9% year over year to $292.2 million, and Software updates and maintenance rose 0.6% year over year to $240.9 million.
Also Read: DeepSeek Sell-off Offers Opportunities On Semicaps, Analyst Bumps Up Price Forecasts For KLA, Nova And Camtek
Margin: Adjusted operating margin declined to 43.5% from 46.5% the prior year. The operating margin declined to 36.1% from 38.0% a year ago as operating expenses surged by 9.2% Y/Y.
The company generated $249.0 million in operating cash flow, compared to $235.8 million a year ago, and held $2.78 billion in cash and equivalents as of December-end.
The fourth quarter results reflect strong 8% revenue growth in its core Quantum Force appliance business, Harmony E-mail solution, and expanded adoption of the Infinity platform, Founder and Chairman Gil Shwed said.
Check Point Software Technologies surged over 27% in the last 12 months.
Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.
Shares of Check Point Software have an average 1-year price target of $202.75, representing an expected downside of 6.49%.
Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Check Point Software, while 2 analysts have bullish ratings. The street high price target from Jefferies is $225.0, while the street low from Citigroup is $190.0.
Price Action: CHKP stock is up 5.76% at $215.64 at the last check Thursday.
Also Read:AMD Gets A Downgrade And It’s Not DeepSeek Related
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.