CHKP Stock Forecast & Price Target

Check Point Software Technologies has demonstrated robust performance, particularly in product and licenses revenue, which rose approximately 12% year-over-year, significantly exceeding consensus expectations. The strong demand for Quantum Force appliances, expected to continue through the first half of 2026, positions the company favorably for sustained growth driven by a pipeline of renewals and an anticipated price increase. Additionally, significant advancements in innovative areas such as SASE, email security, and enterprise risk management, all growing over 40% year-over-year, further bolster Check Point's positive outlook as these sectors are expected to enhance subscription momentum and overall revenue growth.

Check Point Software Technologies is experiencing a negative outlook due to several fundamental financial challenges, including a disappointing 2Q billings growth of only 4% year-over-year, which fell short of consensus expectations and suggests a deceleration in future revenue growth. The firm also faces risks stemming from macroeconomic uncertainties, a decline in product license revenue, and a competitive shift towards next-generation security functionalities, indicating potential weaknesses in product offerings. Additionally, the company's valuation has been adjusted downwards from approximately 21x to 20x EV/C26E EBITDA, reflecting a direct correlation to its underperformance and slowdown in software subscription growth, which decreased to 9.6% in 2Q25 from 13.7% in the prior year.