Check Point Software Showing Strong Potential for Growth

Check Point Software Technologies has gained 15% in 2025, driven by strong revenue growth. Analysts suggest its focus on AI tools in cybersecurity may further boost its growth trajectory.

Date: 01-03-2025

AI Rating: 6

**Overview of Check Point Software Technologies**

Check Point Software Technologies (NASDAQ: CHKP) has made significant strides in the cybersecurity industry, demonstrated by a 15% increase in stock value since the beginning of 2025. This report highlights potential factors that could positively impact the company's stock prices in the near future.

**Earnings and Revenue Growth**

Check Point reported total revenue of $2.66 billion for the year 2024, which reflects a 6% year-over-year increase. The non-GAAP (adjusted) earnings per share (EPS) grew by 9%, reaching $9.16 for the same period. Despite these figures not being significantly groundbreaking, the rising revenue pipeline suggests that Check Point is positioned well for future expansion.

In Q4 of 2024, Check Point reported a remarkable 12% year-over-year increase in remaining performance obligations (RPO). This indicates that the company has more business secured than it is currently fulfilling, which means it could experience accelerated growth as these contracts are completed.

**Product Demand and Profit Margins**

Check Point's products and licenses have experienced an 8% year-over-year increase, particularly boosted by the growing demand for its AI-powered firewall, Quantum Force. The company is capitalizing on the adoption of generative AI in cybersecurity, positioning itself well against competitors.

**Future Revenue Guidance and Valuation**

For fiscal year 2025, Check Point has estimated revenue growth in the range of 4% to 8%, along with projected bottom-line growth between 5% and 11%. At the midpoint of this guidance, adjusted EPS could reach approximately $9.90, which appears more promising given the increasing RPO. With an attractive valuation of 22 times forward earnings (lower than the Nasdaq-100 average of 28), investors might find Check Point an appealing opportunity.

**Conclusion**

Check Point is demonstrating solid performance, driven by strategic developments in AI technology and a growing client base. If the company can fulfill its existing contracts and maintain the momentum in demand for its products, there could be significant upside potential for its stock value moving forward.

Stocks: CHKP