Check Point Stock Surges After Earnings Beat – AI & Partnerships Fuel Rally!

Stock Jump: CHKP shares popped about 3% premarket on Oct 28 after the company reported blowout Q3 results ^[1]. At the Oct 27 close, the stock was around $191.72 ^[2] (near its 52-week range high of $234 ^[3]).
Q3 Beat: Check Point reported Q3 2025 revenue of $678M (+7% YoY) and non-GAAP EPS $3.94 (+75% YoY) ^[4], well ahead of Wall Street forecasts. Calculated billings jumped 20% YoY to $672M ^[5]. CEO Nadav Zafrir said “Check Point delivered strong third quarter results, driven by increased demand for our portfolio…” ^[6].
AI Security Acquisition: The company closed its purchase of Lakera (an AI-native security platform) on Oct 22, bolstering its AI-driven security offerings ^[7]. Zafrir noted the Lakera deal “strengthen[s] our position to deliver a comprehensive, full-stack AI-powered security platform” (see earnings release) ^[8].
New Partnerships: Check Point announced several strategic tie-ups. In late Sept 2025 it integrated its cloud security platform with Wiz to offer a unified Cloud Security solution ^[9]. On Oct 27 it unveiled a multi-year sports franchise security deal (76ers, Devils, Washington Commanders) to deliver “AI-powered, prevention-first cybersecurity solutions” to those organizations ^[10]. Paul Barbosa, Check Point’s Cloud Security VP, hailed the Wiz collaboration as “the epitome of Check Point’s open-garden approach” and “a new benchmark for unified cloud security” ^[11].
Government & Innovation: In Sept, Check Point earned FedRAMP authority for its Infinity platform (allowing use by U.S. federal agencies) ^[12]. Bill Diaz, VP of Vertical Solutions, said this “validates our rigorous approach to security and positions Check Point as a trusted partner for the most demanding federal environments” ^[13]. The company was also recognized by Fast Company on its “Next Big Things in Tech 2025” list for its blockchain-security solution ^[14], highlighting its innovation in securing public blockchains.
Analyst Buzz: Sentiment is bullish. No analysts have “sell” ratings; the median price target is ~$215 (well above today’s price) ^[15]. StockAnalysis reports a consensus “Buy” rating (average 12-month target ~$227) ^[16]. For example, Finimize notes analysts are “firmly positive” on CHKP and point out its “AI-powered” security focus (median target $215) ^[17] ^[18]. Validea’s models (via ts2.tech) even flag Check Point as a top tech pick, calling it a “leading name in cybersecurity, offering AI-powered, cloud-delivered security via the Check Point Infinity Architecture” ^[19].

Stock Performance & Recent Moves

Check Point’s stock has traded in the $170–195 range recently. It closed at about $191.72 on Oct 27 ^[20], up modestly for the month but off its June 2025 peak near $234. The premarket jump on Oct 28 reflects investor enthusiasm for the Q3 beat and the company’s AI/security push ^[21] ^[22]. Over the past year CHKP is up roughly mid-single-digits, outperforming laggards like Fortinet (down ~9% YTD) but trailing high-flyers like Palo Alto Networks. (For context, Fortinet was noted as a top Validea pick by one model ^[23].) Check Point’s trailing P/E is around 25×, and forward P/E ~18× ^[24], lower than premium cyber peers. Volume was ~1.34M shares on Oct 27 ^[25], above its average, reflecting active trading into earnings.

Q3 Earnings Overview

Check Point reported strong Q3 financials on Oct 28 (for the quarter ended Sept 30). Revenue of $678M (+7% YoY) topped guidance, driven by higher security renewals and new customer wins ^[26]. Non-GAAP EPS was $3.94, a 75% jump from last year ^[27], boosted in part by a one-time tax benefit. Management highlighted broad demand for its Infinity portfolio (cloud and network firewalls, Workspace, external risk management, etc.). As CEO Nadav Zafrir explained, “Check Point delivered strong third quarter results, driven by increased demand for our portfolio including Hybrid-Mesh-Network, Workspace and External Risk Management (ERM),” ^[28]. He also stressed the Lakera acquisition, noting that it advanced Check Point’s “AI First strategy” and will strengthen its full-stack AI security platform ^[29] ^[30]. Cash flow remains robust, and the company repurchased 1.6M shares in Q3 at ~$325M ^[31].

Expert Take on Q3

Market analysts and commentators praised the results. Finimize reported that Check Point “outpaces expectations” thanks to its AI-powered cybersecurity tools ^[32]. The Lakera deal (closed Oct 22) was specifically mentioned as boosting automation capabilities on the platform ^[33]. Wall Street had forecast about $673M revenue, so the beat was well-received. According to one write-up, this sustained momentum is putting CHKP “on investors’ radar” as a high-growth tech stock ^[34]. Notably, Finimize found that all analysts covering CHKP have Buy or Hold ratings – none a Sell – and the median price target is ~$215 ^[35], implying upside. Similarly, StockAnalysis notes 25 analysts rate CHKP a “Buy” with an average 12-month target around $227 ^[36].

Partnerships, Products & Innovation

Check Point has been aggressive on partnerships and new product fronts. Cloud Security with Wiz: In late Sept the company launched an integrated solution with cloud-security vendor Wiz. This lets customers combine Wiz’s CNAPP (cloud-native app protection) with Check Point’s CloudGuard network security. Check Point’s Paul Barbosa called it “the epitome of Check Point’s open-garden approach” and “a new benchmark for unified cloud security” ^[37]. This follows earlier tie-ups (e.g. with Palo Alto in AI threat intel) and underscores a trend of collaboration.

Sports & Entertainment: On Oct 27 Check Point inked a multi-year deal to secure the digital operations of Harris Blitzer Sports & Entertainment (owner of the NBA’s 76ers and NHL’s Devils) and the Washington NFL team (Commanders) ^[38]. The company will deploy its Infinity portfolio to protect ticketing, payroll, and other systems. “Sports organizations are becoming digital enterprises,” explained Bill Diaz, Check Point’s VP of Vertical Solutions. “We’re proud to partner with HBSE & Washington Commanders to protect these iconic franchises with our AI-powered, prevention-first cybersecurity solutions,” he said ^[39].

Government/Compliance: In September Check Point achieved full FedRAMP authorization for its Infinity Platform at the Moderate level ^[40]. This means U.S. federal agencies can now deploy Check Point’s cloud and network security with confidence. As Diaz noted, FedRAMP “validates our rigorous approach to security and positions Check Point as a trusted partner for the most demanding federal environments” ^[41]. (Check Point also continues to pursue other government certifications and has been named a leader in multiple analyst reports.)

Innovations: The company is also innovating in emerging areas. In October it was featured on Fast Company’s “Next Big Things in Tech 2025” list for its real-time blockchain threat prevention ^[42]. Check Point’s blockchain solution (now live on Cardano’s mainnet) “protects the decentralized future, offering enterprise-grade, compliance-ready security for a safer blockchain ecosystem,” said CSO Roi Karo ^[43]. This highlights Check Point’s push into securing new tech platforms (AI agents, IoT, blockchain, etc.) with its Infinity architecture.

Analyst Commentary

Industry analysts are broadly upbeat on Check Point’s strategy. Validea (via ts2.tech) ranks CHKP highly on its value/growth screens. One model notes “Check Point … emerges as a leading name in cybersecurity, offering AI-powered, cloud-delivered security via the Check Point Infinity Architecture.” ^[44] (That screen gave CHKP a 79% score on a Buffett-style quality metric.) For context, Validea also flagged Fortinet as a top pick (91% score) using a Lynch-based model ^[45], indicating Check Point is viewed in similar company.

Financial forecasts assume continued solid growth. With global cybersecurity budgets projected to grow ~12% in 2025 ^[46], analysts expect rising demand for Check Point’s solutions. One recent note observed that Check Point’s price-to-earnings ratio has come down to the high teens, potentially offering value if growth persists ^[47]. Though Check Point has not issued formal guidance for Q4, many analysts anticipate mid-teens revenue growth and sustained margin expansion as AI and cloud security drive renewals. Wall Street price targets cluster in the low-to-mid $200s; for example, the median target is ~$215–227 ^[48] ^[49], implying roughly 10–20% upside if met.

As one analyst summary put it, Check Point’s “AI-fueled cybersecurity tools” and recent acquisitions have put it on investors’ radar ^[50]. If the company continues to execute, many experts believe CHKP can maintain its leadership in core firewall and SASE products while capitalizing on new AI-security markets. However, competition is fierce: Palo Alto Networks is also racing ahead on AI (and pursuing a $25B CyberArk deal) ^[51], and Fortinet remains a strong player in network security. Analysts will be watching Check Point’s next moves – whether it adds products or acquisitions – to see if it can keep pace with those peers.

Outlook & Valuation

Heading into late 2025, Check Point is positioned as a profitable, cash-generative cyber-security stalwart. Its balance sheet is strong (net cash positive, with ~$2.8B in cash/liquid assets) ^[52], and it returned $325M of capital in Q3 via buybacks. The company often exceeds expectations modestly, which has steadily increased the stock by ~28% over the last two years (outpacing the S&P 500). Going forward, continued AI adoption (across enterprise and government) should sustain demand. At current levels, CHKP trades at roughly 18–25× forward earnings ^[53] – cheaper than high-flying growth names – leaving room for multiple expansion if growth accelerates.

In summary, Check Point’s latest results and strategic bets have energized the stock. As one strategist commented, CHKP’s pivot to AI and cloud security “mirrors a bigger industry shift toward smarter, automated defenses” ^[54]. With solid fundamentals and an aggressive product roadmap, many investors now see Check Point as an attractive cybersecurity name. As the Nasdaq composite and tech sector flirt with new highs, Check Point will likely trade in step with broader cyber trends; key catalysts to watch include its upcoming earnings calls, product launches (SASE and zero-trust upgrades), and any new M&A moves.

Sources: Company releases and conference calls ^[55] ^[56]; financial news and analysis (Finimize, ts2.tech, Seeking Alpha) ^[57] ^[58] ^[59]; market data (Nasdaq, Yahoo Finance) ^[60] ^[61]; and industry reports ^[62] ^[63]. (All data as of Oct. 28, 2025, market open.)