Earnings Beat: Check Point Software Technologies Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Investors in Check Point Software Technologies Ltd. (NASDAQ:CHKP) had a good week, as its shares rose 3.1% to close at US$199 following the release of its quarterly results. Revenues were US$678m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$3.28, an impressive 76% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Check Point Software Technologies after the latest results.

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After the latest results, the 35 analysts covering Check Point Software Technologies are now predicting revenues of US$2.89b in 2026. If met, this would reflect a satisfactory 7.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to descend 13% to US$8.23 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.87b and earnings per share (EPS) of US$8.38 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Check Point Software Technologies

There were no changes to revenue or earnings estimates or the price target of US$229, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Check Point Software Technologies, with the most bullish analyst valuing it at US$285 and the most bearish at US$200 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Check Point Software Technologies'historical trends, as the 6.1% annualised revenue growth to the end of 2026 is roughly in line with the 5.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 15% annually. So it's pretty clear that Check Point Software Technologies is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$229, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Check Point Software Technologies going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Check Point Software Technologies .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.