After Palo Alto’s Israel listing, Check Point says its roots run deeper
“We have our intellectual property here, our R&D here, our management here, and we pay taxes here,” CEO says as quarterly revenue rises 6% to $745 million.
Check Point beat expectations for fourth-quarter profit on Thursday and said the rapidly growing need to protect computer networks from artificial intelligence-driven cyber threats would help drive growth in 2026.
Companies are expected to increase cybersecurity spending in the coming years amid concerns that AI will enable hackers to launch more sophisticated attacks and cause greater disruption to businesses.
CEO Nadav Zafrir said that “everything that we built in the last couple of decades needs to be revalidated” as attackers deploy AI-powered malware and other advanced tools to breach computer systems.
“We’re seeing new attack vectors and new capabilities every day, creating vulnerabilities and threats that are truly unprecedented,” he told reporters.
Check Point also announced the expansion of its domestic footprint with a string of acquisitions targeting early-stage startups. Among the targets were Cyclops Security and Cyata, with Check Point also announcing the acqui-hire of the team from Rotate. The valuation of the deals was not disclosed, but is estimated at around $150 million in total.
The Israeli-based cybersecurity company reported earnings of $3.40 per diluted share, excluding one-off items, up 26% from $2.70 a year earlier. Revenue rose 6% to $745 million.
Analysts had expected earnings of $2.77 per share on revenue of $746 million, according to LSEG data.
For the full year 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.
During the fourth quarter of 2025, Check Point repurchased approximately 2.2 million shares at a total cost of about $425 million.
Zafrir said the company’s performance improved over the past year as it expanded its platform across four product groups and transitioned its applications into what he described as the “AI era.” The company is also raising a $2 billion bond, which Zafrir said would support investments across its operations.
“Looking to 2026, we are building the company for the new era of cyber,” he said. “In the age of artificial intelligence, our customers are reinventing themselves across every area in which we operate. AI is changing the way we work and reshaping everything we do.”
He added that decades-old systems are being transformed, while new and previously unseen attack surfaces are emerging. “We must adopt AI tools. Our mission for 2026 is to protect our customers’ transformation.”
Zafrir said the company is focused on updating and strengthening its existing products to address new forms of attack, while also building new infrastructure to counter next-generation threats. “Preventing intrusions and attacks is critical in the age of artificial intelligence,” he said. “We need to anticipate what’s around the corner through research and close collaboration with our customers.”
On Wednesday, rival Palo Alto Networks completed its $25 billion acquisition of CyberArk to strengthen its position in the AI-driven cybersecurity market. The company also announced plans to dual-list its shares in Tel Aviv.
Asked whether Check Point would consider a similar move, Zafrir suggested the company intends to remain solely listed on Nasdaq despite its Israeli roots.
“We have our intellectual property here, our R&D here, our management here, and we pay taxes here,” he said, referring to Israel.
Reuters contributed to this report.
