Latest news with #CheckPointSoftware
Globe and Mail
a day ago
- Business
- Globe and Mail
Palo Alto vs. Check Point: Which Cybersecurity Stock Has an Edge?
Palo Alto Networks PANW and Check Point Software CHKP are both at the forefront of the cybersecurity space, playing key roles in guarding organizations from extensive cyberattacks. Both players are taking active roles in enabling enterprises against cloud and endpoint security. Palo Alto Networks and Check Point Software are riding the key industry trends, driven by the mounting incidents of credential theft, remote desktop protocol breaches and social engineering-based strikes by the malicious actors. Per a Mordor Intelligence report, the cybersecurity space is expected to witness a CAGR of 12.63% from 2025 to 2030. With this strong growth forecast for the cybersecurity market, the question remains: Which stock has more upside potential? Let's break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case. The Case for Palo Alto Networks Palo Alto Networks remains a cybersecurity leader, offering solutions for network security, cloud security and endpoint solutions for customers who need full enterprise security support. Its next-generation firewalls and advanced threat detection technologies are widely recognized and adopted globally. Palo Alto Networks' wide range of innovative products, strong customer base and growing opportunities in areas like Zero Trust, Secure Access Service Edge (SASE) and private 5G security continue to support its long-term growth potential. Palo Alto Networks' ongoing technology advancements make it a compelling long-term investment. For example, in the third quarter of fiscal 2025, SASE was Palo Alto Networks' fastest-growing segment, with SASE Annual recurring revenues increasing 36% year over year. Moreover, PANW has upgraded its Prisma Cloud platform by adding Prisma Cloud Copilot, a generative AI-powered assistant. This enables security teams to understand and respond to user queries in plain natural language more effectively. Additionally, Prisma Cloud's recent FedRAMP authorization is expected to help contract wins from federal agencies. However, Palo Alto Networks is encountering some near-term challenges. The company is experiencing shortened contract durations and a slowdown in the transition to PANW's cloud-based AI-powered platforms from its legacy platforms. Moreover, Palo Alto Networks' $1 million-plus deals are shifting from multi-year payments to annual payments, causing the shortening of the sales cycle and affecting top-line stability. This can cause a deceleration in Palo Alto Networks' top-line growth. Notably, the company's revenue growth rate has been in the mid-teen percentage range over the past year, a sharp contrast from the mid-20s percentage in fiscal 2023. In the financial results for the third quarter of fiscal 2025, its sales and non-GAAP EPS grew 15.7% and 21.2%, respectively, year over year. The Case of Check Point Software Check Point Software provides several software and combined hardware solutions focused on safeguarding information technology infrastructure. The company's solutions can either be combined with the operating system, a computer device, a server or a virtual desktop to employ network and gateway security and end-to-end data security. Check Point Software is experiencing growth in its revenues from the continuous adoption of its cloud solutions and a robust demand for Quantum Force firewalls, up 12% year over year, in the second quarter of 2025, as well as strong momentum in Harmony Email, SASE, and Infinity platforms, each growing above 40% year over year. Rising demand for network security gateways to ensure greater capacities is aiding strong adoption of Check Point Software's remote access VPN solutions. Check Point Software is investing heavily in AI-first security, integrating automation and real-time threat prevention across its portfolio. Recent M&A, including Veriti, bolsters Check Point's proactive threat exposure management. Additionally, Check Point Software has doubled its SASE R&D team and aims to further differentiate through a hybrid architecture that delivers a better user experience and lower cloud costs. Check Point Software is also increasing its revenues by implementing subscription-based solutions and services. The subscription-based model ensures stable recurring revenues with a high gross margin. However, in the second quarter, subscription growth faced a temporary headwind due to higher discounting from bundled product-refresh deals. Management expects long-term benefits from expanded customer relationships and future upsell opportunities to drive higher subscription growth in the coming quarters. In the financial results for the second quarter of 2025, Check Point Software's sales and non-GAAP EPS grew 6% and 9%, respectively, year over year. The Zacks Consensus Estimate for 2025 revenues and EPS indicates a year-over-year increase of 5.9% and 8.2%, respectively. PANW vs. CHKP: Which Has a Better Growth Profile Though both companies are encountering certain challenges, Palo Alto Networks has a better growth profile than Check Point Software. The Zacks Consensus Estimate for PANW's fiscal 2026 revenues and EPS indicates a year-over-year increase of 13.7% and 11.6%, respectively. The consensus mark for Palo Alto Networks' fiscal 2026 EPS has been revised a penny upward to $3.65 over the past seven days. PANW Growth Estimates The Zacks Consensus Estimate for Check Point Software's 2025 revenues and EPS indicates a year-over-year increase of 6% and 8.3%, respectively. The consensus mark for CHKP's 2025 EPS has remained unchanged at $9.91 over the past 60 days. CHKP Growth Estimates Image Source: Zacks Investment Research PANW vs. CHKP: Price Performance & Valuation Year to date, Check Point shares have gained 3.3% against the 5.8% decline in Palo Alto Networks shares. YTD Price Performance Palo Alto Networks is trading at a forward sales multiple of 11.02X, higher than Check Point Software's 7.38X. PANW's higher premium seems justified given its earnings are projected to grow at a higher rate than CHKP. PANW's valuations also reflect its high growth expectations and robust profitability. Forward 12 Month P/S Valuation Conclusion: PANW Has an Edge Over CHKP Palo Alto Networks' leadership in the cybersecurity space provides strong revenue visibility for years to come. While the stock trades at a higher valuation than Check Point Software, its explosive growth prospects and strong financial execution more than justify the price. While Check Point Software's execution risks and a slower growth trajectory suggest that investors should consider holding existing positions or waiting for more attractive entry points. Currently, Palo Alto Networks carries a Zacks Rank #3 (Hold), making the stock a stronger pick compared with Check Point Software, which has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report
Yahoo
6 days ago
- Business
- Yahoo
Why Check Point Software Stock Dived by Almost 15% Today
Key Points The cybersecurity company posted growth on both the top and bottom lines in its second quarter. It also notched a double beat on analyst estimates, but investors were focused on other, less happy news. 10 stocks we like better than Check Point Software Technologies › Wednesday was an eventful day for Check Point Software Technologies (NASDAQ: CHKP). The company published its latest quarterly earnings report, but this was overshadowed by a big-ticket buyout of a peer company in its native Israel. The latter was dismaying for Check Point investors, and many sold out of the stock. It ended up closing nearly 15% lower in price, for a much steeper tumble than the S&P 500 index's 0.1% slip. Growth where it counted In a way, the market's punishment of Check Point was undeserved, because that report wasn't bad at all. The veteran cybersecurity company's second quarter saw it increase total revenue by 6% year-over-year to $665 million, accompanied by a 4% advance in "calculated" billings -- total revenue plus the change in deferred revenue -- to $642 million. Profitability improved too, with non-GAAP (adjusted) net income rising to slightly over $261 million ($2.37 per share) from the year-ago figure of $246 million. Both headline results beat the average analyst's estimates, although not spectacularly. Collectively, those prognosticators were anticipating Check Point would book slightly less than $662 million in revenue, and net an adjusted profit of $2.36 per share. In the earnings release, Check Point attributed its growth to success in its emerging technologies offerings, a slate of products that includes enterprise risk tools among other offerings. A big suitor is acquiring a rival Management also reiterated its guidance for full-year 2025, which calls for revenue of $2.66 billion to $2.76 billion; this would mean growth of at least 4% over the previous year. Adjusted per-share earnings are forecast at $9.60 to $10.20, for an improvement ranging from 5% to 11%. Again, none of these numbers is particularly discouraging. What investors were reacting more to was U.S. cybersecurity company Palo Alto Networks' news that it is acquiring Israeli peer CyberArk Software for roughly $25 billion. That's a big chunk of change, and some investors were surely unhappy that Palo Alto chose CyberArk to be its bride instead of Check Point. Should you buy stock in Check Point Software Technologies right now? Before you buy stock in Check Point Software Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Check Point Software Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,075,791!* Now, it's worth noting Stock Advisor's total average return is 1,039% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Check Point Software Technologies. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy. Why Check Point Software Stock Dived by Almost 15% Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
Seeking Clues to Check Point (CHKP) Q2 Earnings? A Peek Into Wall Street Projections for Key Metrics
Analysts on Wall Street project that Check Point Software (CHKP) will announce quarterly earnings of $2.36 per share in its forthcoming report, representing an increase of 8.8% year over year. Revenues are projected to reach $660.83 million, increasing 5.3% from the same quarter last year. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock. While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights. With that in mind, let's delve into the average projections of some Check Point metrics that are commonly tracked and projected by analysts on Wall Street. The consensus among analysts is that 'Revenues- Total revenues from products and security subscriptions' will reach $423.58 million. The estimate suggests a change of +8.7% year over year. It is projected by analysts that the 'Revenues- Software updates and maintenance' will reach $237.06 million. The estimate points to a change of -0.2% from the year-ago quarter. The consensus estimate for 'Revenues- Products and licenses' stands at $123.35 million. The estimate indicates a change of +4.5% from the prior-year quarter. The average prediction of analysts places 'Revenues- Security Subscriptions' at $300.62 million. The estimate suggests a change of +10.6% year over year. View all Key Company Metrics for Check Point here>>> Shares of Check Point have experienced a change of -1.3% in the past month compared to the +3.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), CHKP is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Check Point Software Technologies Ltd. (CHKP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Techday NZ
21-07-2025
- Business
- Techday NZ
Check Point appoints Jonathan Zanger to lead global AI strategy
Check Point Software has appointed Jonathan Zanger as Chief Technology Officer with a remit to advance its global AI strategy and cyber security innovation. The company stated that Zanger will oversee Check Point's cyber security and AI strategy as well as its AI centres worldwide, shaping the direction of its efforts in automation and machine learning across the organisation's platforms. Leadership experience Jonathan Zanger joins the company with more than 15 years of experience in developing and scaling cyber security and AI-based platforms. His previous position was as Chief Technology Officer at Trigo, where he led projects focused on advanced AI and computer vision systems for use in autonomous retail environments. Zanger also holds advanced degrees in Electrical Engineering and Computer Science, in addition to an MBA from the Massachusetts Institute of Technology. "AI is fundamentally reshaping both how cyber threats emerge and how we defend against them. Jonathan's deep technical expertise and leadership in cyber security and applied AI, will accelerate our mission to deliver prevention-first security for a hyperconnected world. His appointment reinforces our commitment to shaping the future of cyber defense through bold innovation," said Nadav Zafrir, CEO at Check Point Software Technologies. Focus on AI and prevention-first security As Chief Technology Officer, Zanger's key responsibility will be directing the evolution of the company's AI initiatives, integrating advanced automation and machine learning throughout its Infinity Platform. Check Point said this approach is intended to enhance its prevention-first model for cyber security. According to Check Point, recent developments have reinforced its direction, including its recognition as a Leader in the Forrester Wave: Zero Trust Platform, Q3 2025 report. The report specifically cited the company's "plan to deliver AI-driven capabilities to automate network security functions." The company was also validated by Miercom as one of the top-performing AI-powered security platforms in the industry. Both distinctions have, according to the company, supported its strategy to provide integrated and intelligent cyber security solutions suitable for hybrid IT ecosystems. "I'm thrilled to join Check Point at such a pivotal moment. Cyber security must evolve faster than the threats it's designed to stop. By embedding AI across every layer of our architecture, from gateways to the cloud, we're not just keeping pace, we're setting the pace," said Jonathan Zanger, Chief Technology Officer at Check Point. Supporting digital transformation Zanger's appointment coincides with ongoing moves by Check Point to build out its capabilities in AI and cyber security, including investments in talent and technology. The company says it maintains a prevention-first approach and an open garden ecosystem as part of its strategy to offer cyber security to enterprises engaged in digital transformation. Check Point believes these actions position it to provide businesses with the tools needed for resilience and confidence in complex IT environments, emphasising the growing significance of AI-driven technologies in both detecting and responding to cyber threats. Follow us on: Share on:
Yahoo
08-07-2025
- Business
- Yahoo
CrowdStrike Stock Rises 11% in a Month: Time to Hold or Book Profits?
CrowdStrike Holdings CRWD shares have soared 10.7% over the past month, outperforming the Zacks Security industry's 4.6% growth. The stock has also exceeded the returns of other industry peers, including CyberArk Software CYBR, Palo Alto Networks PANW and Check Point Software CHKP. In the past month, shares of CyberArk and Palo Alto Networks have gained 0.2% and 2.8%, respectively, while Check Point Software shares have lost 1.8%.CrowdStrike has been riding on strong enterprise demand for artificial intelligence (AI)-native cybersecurity solutions. But with the stock surging over the past month, the question arises: Does it still have room to run, or is it time for investors to consider taking profits? Let's find out. Image Source: Zacks Investment Research A key driver of CrowdStrike's customer growth is its Falcon Flex subscription model, which streamlines security adoption with modular and scalable solutions. This flexibility fosters long-term customer commitments, fueling steady revenue growth and deeper platform company ended the first quarter with $4.44 billion in ARR, up 22% on a year-over-year basis. The robust growth in Falcon Flex's customer adoption and deal value is driving CrowdStrike's total ARR. During the first quarter of fiscal 2026, CrowdStrike added $774 million of total Falcon Flex account value, bringing the total deal value of accounts that have adopted Falcon Flex to $3.2 billion. At the end of the first quarter, more than 820 customer accounts have adopted the Falcon Flex model. CrowdStrike achieved the $3.2 billion deal value milestone within two years since its launch, and represents robust growth of 31% sequentially and more than six times year over addition to strong module adoption rates, CrowdStrike is securing major platform expansion deals through Falcon Flex. A Fortune 100 technology company expanded its relationship with CrowdStrike from a $12 million endpoint detection and response deal into a $100 million-plus, five-year Falcon Flex agreement, covering cloud, identity, Next-Gen SIEM, and endpoint protection. Also, GuidePoint Security became CrowdStrike's fifth partner to surpass $1 billion in total deal value mark, joining AWS, Optiv, CDW, and SHI, reinforcing the strength of its ecosystem-driven growth.A large healthcare provider signed an 8-figure Falcon Flex expansion centered on Charlotte AI and CrowdStrike's Next-Gen SIEM, supporting the customer's full transformation to an AI-native SOC. As Flex gains further traction, CrowdStrike appears well-positioned to achieve its longer-term goal of $10 billion in ARR. If current trends hold, Falcon Flex may well be the game-changer that redefines the company's revenue growth trajectory CrowdStrike's subscription business model is driving its overall top-line performance. The company's quarterly revenues crossed the $1 billion mark for the third consecutive time during the first quarter of fiscal 2026 and marked a year-over-year improvement of nearly 21%. This was partly achieved due to the Falcon Flex Subscription Model, which allows customers to commit upfront and later choose modules, eliminating procurement subscription customers, who adopted six or more cloud modules, represented 48% of the total subscription customers at the end of the first quarter. Those with seven or more cloud modules accounted for 32%, and those with eight or more cloud modules represented 22% as of April 30, Falcon platform is gaining popularity as an 'AI-native SOC,' with strong adoption in Charlotte AI Agentic Detection Triage, Workflows and Response. CrowdStrike is partnering with other AI companies to expand its integrated its Falcon cybersecurity platform into NVIDIA's Enterprise AI Factory to enable enterprises to secure their AI systems, covering data ingestion, model training, and deployment. The company also collaborated with Microsoft to standardize cyber threat attribution across vendors. New introductions, including AI Model Scanning and AI Security Dashboard by CRWD, along with its strong partnerships, will likely help the company gain more customers. To survive in the highly competitive cybersecurity market, each player is continuously investing to broaden their capabilities. Investment in research & development (R&D) is a top priority for CrowdStrike. Over the last six fiscals, the company has increased its R&D expenses 12-fold to improve the design, architecture, operation and quality of its cloud over the past few years, CrowdStrike has invested heavily to enhance its sales and marketing (S&M) capabilities, particularly by increasing the sales force. As a result, its sales and marketing expenses flared up nearly ninefold to $1.52 billion in fiscal 2025 from $173 million in fiscal the first quarter of fiscal 2026, S&M and R&D expenses soared 25.5% and 34.7%, respectively, year over year. Though the firm foresees these investments to garner benefits over the long run, higher expenses are weighing on the company's bottom-line results. First-quarter non-GAAP earnings declined 7.6% year over year to 73 cents per costs are likely to continue impacting CrowdStrike's bottom-line performance in the near term, as reflected in the Zacks Consensus Estimate. Image Source: Zacks Investment Research CrowdStrike is currently trading at a high price-to-sales (P/S) multiple, far above the Zacks Security industry. CrowdStrike's forward 12-month P/S ratio sits at 24.55X, significantly higher than the Zacks Security industry's forward 12-month P/S ratio of 15.07X. Image Source: Zacks Investment Research CRWD stock also trades at a higher P/S multiple compared with other industry peers, including CyberArk, Palo Alto Networks and Check Point Software. At present, CyberArk, Palo Alto Networks and Check Point Software have P/S multiples of 13.6X, 12.97X and 8.81X, respectively. As businesses continue prioritizing AI-driven cybersecurity solutions, CrowdStrike's leadership in threat prevention, response and recovery will only strengthen. However, shrinking profits and premium valuation warrant a cautious approach to the stock. So, it is prudent for existing investors to remain invested, while new investors should wait for a better entry currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Check Point Software Technologies Ltd. (CHKP) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
