Quarterly earnings rise as firms spend more on cybersecurity
AI-led attacks spur demand for advanced network protection
Company expects 2026 revenue growth amid escalating threats
Adds bullet points, changes headline, adds 2026 outlook details in paragraphs 1 and 12
By Steven Scheer
JERUSALEM, Feb 12 (Reuters) - Check Point Software Technologies CHKP.O beat fourth-quarter profit expectations on Thursday and said surging demand for protection against AI-driven cyber threats would help lift its 2026 revenue close to $3 billion.
Companies are expected to spend more on cybersecurity due to concerns that AI will equip hackers with new and more sophisticated ways to attack networks and disrupt businesses.
CEO Nadav Zafrir told reporters: "We're seeing new attack vectors and new capabilities every day ... creating vulnerabilities and threats that are really unprecedented."
"Corporate infrastructure is now vulnerable because the very nature of attacks is changing. AI is embedded everywhere."
The Israeli-based network security company reported $3.40 per diluted share, excluding one-off items, for the October-December quarter, up 26% from $2.70 a year earlier. Revenue grew 6% to $745 million. The results reflect a charge of $8 million from foreign exchange effects.
Analysts were expecting $2.77 a share on revenue of $746 million, according to LSEG data.
On Wednesday, rival Palo Alto Networks PANW.O completed its $25 billion purchase of CyberArk to bolster its business in the AI era and said it would dual-list in Tel Aviv.
CHECK POINT TO SOLELY TRADE ON NASDAQ, CEO SAYS
Asked whether Check Point would follow suit, Zafrir suggested the firm would continue to solely trade on Nasdaq.
"We have our IP here, we have our R&D here, we have our management here, and we pay taxes here" in Israel, he said.
In 2025, revenue grew 6% to $2.73 billion - in line with expectations - while adjusted earnings per share rose 30% to $11.89, above the consensus estimate of $11.28.
For 2026, Check Point sees revenue of $2.83-$2.95 billion and adjusted earnings per share of $10.05-$10.85, compared with expectations of $2.89 billion in revenue and $10.46 of EPS in an LSEG poll of analysts. In the first quarter, it projects revenue of $655-$685 million and adjusted EPS of $2.35-$2.45.
Check Point said it bought back about 2.2 million of its shares for $425 million in the fourth quarter.
(Reporting by Steven Scheer; Editing by Anil D'Silva and Bernadette Baum)
((steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters Messaging: X: @StevenMScheer))
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