Check Point Software Technologies (CHKP) Q4 2025 earnings summary

Executive summary

• Q4 and FY2025 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 targeted acquisitions including Rotate, Cyclops, Cyata, and Lakera.

• Enhanced financial flexibility via a $2 billion zero coupon convertible notes offering and strong operating cash flow.

• Focused on strategic customers, new logo acquisition, and deeper enterprise penetration.

Financial highlights

• Q4 2025 revenues grew 6% year-over-year to $745 million, driven by 11% growth in subscription revenues; non-GAAP EPS was $3.40, up 26%, including a $0.52 tax benefit.

• Full-year 2025 revenues reached $2.725 billion, up 6% year-over-year; non-GAAP EPS was $11.89, up 30%, including a $1.90 tax benefit.

• Deferred revenues grew 9% to $2.18 billion; calculated billings for the year grew 8%; RPO grew 8% to $2.7 billion.

• Gross margin for Q4 was 89%; non-GAAP operating income was $302 million (41% margin); operating cash flow in Q4 was $310 million, up 24% year-over-year.

• Ended FY2025 with $4.3 billion in cash, marketable securities, and short-term deposits.

Outlook and guidance

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

• Non-GAAP EPS for 2026 projected at $10.05–$10.85; GAAP EPS expected to be $2.58 lower.

• Adjusted free cash flow for 2026 expected at $1.15–$1.25 billion.

• Operating margin guidance for 2026 is 39–40%, factoring in memory price increases and government grants.

• Q1 2026 revenue guidance: $655M–$685M; non-GAAP EPS: $2.35–$2.45.