Results: Check Point Software Technologies Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

Check Point Software Technologies Ltd. (NASDAQ:CHKP) shareholders are probably feeling a little disappointed, since its shares fell 2.6% to US$127 in the week after its latest quarterly results. Check Point Software Technologies reported US$674m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.87 beat expectations, being 5.6% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, Check Point Software Technologies' 35 analysts currently expect revenues in 2026 to be US$2.80b, approximately in line with the last 12 months. Statutory earnings per share are expected to dive 25% to US$7.71 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.81b and earnings per share (EPS) of US$7.78 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Check Point Software Technologies

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$147. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Check Point Software Technologies at US$201 per share, while the most bearish prices it at US$105. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Check Point Software Technologies' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 5.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 16% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Check Point Software Technologies.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Check Point Software Technologies' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$147, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Check Point Software Technologies analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Check Point Software Technologies (1 is a bit concerning!) that you should be aware of.

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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.