Core Insights - Check Point Software Technologies has announced that its Quantum Firewall Software R82 has received Common Criteria EAL4+ certification, enhancing its reputation as a trusted security solution for critical infrastructure and government sectors globally [1][2][3] - The certification confirms that the R82 platform meets rigorous global standards for security, providing verifiable protection in highly regulated environments [2][3] - The evaluation was conducted by TÜV Informationstechnik GmbH, an accredited testing facility, and the certification is recognized in over 30 countries under international agreements [2][3] Company Overview - Check Point Software Technologies is a leader in cyber security solutions, protecting over 100,000 organizations worldwide with AI-powered technologies [4] - The company employs a hybrid mesh network architecture with SASE at its core, offering a unified management approach for on-premises, cloud, and workspace environments [4]

Core Insights - The article discusses the launch of Check Point Software Technologies' inaugural AI Security Report, highlighting how cyber criminals are leveraging artificial intelligence to enhance their attacks and the need for organizations to adapt their defenses accordingly [1][4]. AI-Driven Cyber Threats - Cyber criminals are using generative AI and large language models to create realistic impersonations, undermining trust in digital identities [2][3]. - The report identifies four key areas where AI is eroding trust: AI-enhanced impersonation, data poisoning, AI-created malware, and the hijacking of AI models [3][5]. Defensive Strategies - Organizations are advised to adopt AI-aware cybersecurity frameworks to counteract AI-driven threats [4]. - The report emphasizes the importance of integrating AI into cybersecurity defenses to keep pace with attackers [4]. Specific Threats Identified - AI-Enhanced Impersonation: Attackers are generating realistic phishing emails and audio impersonations, exemplified by a recent incident involving Italy's defense minister [5]. - LLM Data Poisoning: Malicious actors are manipulating AI training data, with evidence showing that AI chatbots can repeat false narratives 33% of the time [5]. - AI-Created Malware: Cyber criminals are using AI to optimize malware and automate attacks, enhancing the resale value of stolen data [5]. - Weaponization of AI Models: Attackers are commercializing AI tools for hacking and fraud on the dark web [5]. Recommendations for Organizations - Implement multi-layered identity verification methods to combat AI-powered impersonation [5]. - Utilize AI for threat detection and hunting to identify AI-generated threats [5]. - Equip security teams with tools to recognize and respond to AI-driven tactics [5].

Core Insights - Check Point Software Technologies has achieved "In Process" status for the Federal Risk and Authorization Management Program (FedRAMP) Moderate baseline, marking a significant step towards full FedRAMP Authorization for U.S. federal agencies [1][2][3] - The "In Process" status indicates that Check Point is collaborating with a federal agency sponsor to meet stringent security requirements for protecting federal information systems [2][3] Company Overview - Check Point is a global leader in cyber security solutions, utilizing AI-powered technologies to protect over 100,000 organizations worldwide [4] - The company's Infinity Platform employs a hybrid mesh network architecture with SASE at its core, providing a unified management approach for on-premises, cloud, and workspace environments [4] Industry Context - FedRAMP is a U.S. government-wide program that standardizes security assessment, authorization, and continuous monitoring for cloud products and services, emphasizing the importance of compliance in the cyber security landscape [3]

Core Viewpoint - The previous investment stance on Check Point Software Technologies Ltd. (NASDAQ: CHKP) was a downgrade to a hold rating due to high valuation amidst decelerating growth [1] Group 1: Investment Strategy - The investment approach focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities [1] - The analysis is based on bottom-up evaluation, examining the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, aiming to find companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Core Viewpoint - Check Point Software Technologies Ltd. reported strong first-quarter 2025 results, with earnings and revenues exceeding consensus estimates, driven by robust demand for its products and services [1][2][3]. Financial Performance - Non-GAAP EPS for Q1 2025 was $2.21, beating the Zacks Consensus Estimate by 0.91% and increasing 8.3% year-over-year from $2.04 [1]. - Total revenues for Q1 2025 reached $637.8 million, surpassing the consensus mark by 0.22% and reflecting a 7% year-over-year growth [2]. - Security subscription revenues were $291 million, up 10% year-over-year, while products and licenses revenues rose 14% to $114 million, exceeding consensus estimates by 8.94% [3]. Revenue Breakdown - Total revenues from products and security subscriptions amounted to $404.7 million, an 11.27% increase year-over-year, beating the segment sales consensus by 2.12% [4]. - Software updates and maintenance revenues decreased 0.9% year-over-year to $233.1 million, missing the consensus mark by 2.45% [4]. Profitability Metrics - Non-GAAP gross profit increased 5.2% year-over-year to $564 million, with gross margin contracting 110 basis points to 88.4% [5]. - Non-GAAP operating income for Q1 2025 was $259 million, up 2.8% year-over-year, while operating margin contracted 150 basis points to 40.6% due to higher operating expenses [6]. Balance Sheet and Cash Flow - As of March 31, 2025, Check Point had cash and equivalents totaling $2.93 billion, up from $2.78 billion in the previous quarter [7]. - The company generated $421.1 million in cash from operational activities in Q1, compared to $249 million in the previous quarter, and repurchased $325 million in stocks during the reported quarter [7]. Guidance - For Q2 2025, Check Point projects revenues between $642 million and $682 million and non-GAAP EPS in the range of $2.32-$2.42, with the consensus estimates at $661.89 million and $2.37, respectively [8]. - For the full year 2025, the company expects revenues between $2.66 billion and $2.76 billion and non-GAAP EPS in the range of $9.60-$10.20, with consensus estimates at $2.71 billion and $9.9, respectively [9].

Core Insights - Check Point Software Technologies and Illumio have formed a strategic partnership to enhance cybersecurity and advance Zero Trust strategies through integration of their platforms [1][2][3] - The collaboration focuses on rapid identification and mitigation of lateral movement risks in hybrid and multi-cloud environments, utilizing advanced microsegmentation [1][3] - The integration combines Check Point's Quantum Force Firewalls and AI-driven security management with Illumio's segmentation and insights to neutralize threats effectively [1][2][3] Company Overview - Check Point Software Technologies is a global leader in cybersecurity solutions, protecting over 100,000 organizations worldwide with its AI-powered, cloud-delivered Infinity Platform [8] - Illumio specializes in ransomware and breach containment, utilizing its AI Security Graph to identify and contain threats across hybrid multi-cloud environments [9][10] Key Benefits of Integration - The partnership enhances visibility and adaptive policy enforcement, allowing organizations to contain threats quickly and effectively [2][3] - Check Point's Quantum Force firewalls block malicious traffic, while AI Security Management software provides dynamic policy updates to counter detected threats [2] - Illumio's Insights and Segmentation tools facilitate real-time threat detection and response, aligning with Zero Trust principles to improve overall cyber resilience [3][6] Advanced Threat Intelligence - The integration leverages combined threat intelligence from Check Point's ThreatCloud AI and Illumio Insights to mitigate risks and minimize security incidents [6]

Financial Data and Key Metrics Changes - Revenues grew by 7% to $638 million, exceeding the midpoint of guidance by $4 million, while non-GAAP EPS was $2.21, representing a 9% year-over-year growth [6][12] - Deferred revenues increased by 5% to $1,915 million, with calculated billing reaching $553 million, reflecting a 7% year-over-year growth [7][8] - Remaining performance obligation (RPO) grew by 11% to $2,424 million, indicating strong demand for Quantum Force appliances [8] Business Line Data and Key Metrics Changes - Product and license revenues saw a 14% year-over-year growth, driven by strong demand for Quantum Force appliances [8] - Infinity revenues continued to show strong double-digit growth year-over-year, now exceeding 15% of total revenues [10] Market Data and Key Metrics Changes - Revenue distribution showed that 45% came from EMEA (5% growth), 42% from America (6% growth), and 13% from Asia-Pacific (12% growth) [10] Company Strategy and Development Direction - The company aims to provide a leading platform for hybrid mesh architecture, focusing on flexibility, performance, and cost [21][23] - A new division focusing on securing the hybrid modern workforce is being established, with a goal to cross $200 million in ARR within the next year [37][128] - The company is emphasizing partnerships, particularly with Wiz, to enhance its cloud security offerings [24][99] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pipeline for the second quarter, noting healthy security spending despite macroeconomic uncertainties [39][40] - The company is cautious about potential extended sales cycles due to macroeconomic factors but currently sees no negative impact on demand [48][140] Other Important Information - Operating cash flow was strong at $421 million, representing a 17% year-over-year growth [13] - The company continued its buyback program, purchasing approximately 1.5 million shares for $325 million [17] Q&A Session Summary Question: Insights on business outlook and customer conversations regarding tariffs - Management noted no current impact from macroeconomic conditions on the pipeline, particularly for Quantum Force appliances, but acknowledged potential volatility [47][50] Question: Product revenue growth and tariff impact - Management indicated that tariffs would have a minimal impact on margins, with ongoing adjustments to the supply chain to mitigate costs [57] Question: Growth initiatives and management accountability - The CEO emphasized a cultural shift towards urgency and accountability across all employees, focusing on ARR and subscription growth [70][71] Question: Update on SASE solution and market positioning - The company is focused on enhancing its SASE solution, aiming for feature parity and targeting large enterprises for deployment [87][90] Question: Clarification on CNAPP strategy and customer mix - Management clarified that they are doubling down on cloud partnerships while focusing resources on core strategic areas like SASE [98][100]

Core Insights - Check Point Software (CHKP) reported revenue of $637.8 million for Q1 2025, marking a year-over-year increase of 6.5% and exceeding the Zacks Consensus Estimate of $636.42 million by 0.22% [1] - The company's EPS for the same period was $2.21, up from $2.04 a year ago, surpassing the consensus EPS estimate of $2.19 by 0.91% [1] Revenue Breakdown - Calculated Billings reached $553 million, slightly above the average estimate of $550.31 million from seven analysts [4] - Total revenues from products and security subscriptions amounted to $404.70 million, exceeding the average estimate of $396.29 million from 11 analysts, representing an 11.3% year-over-year increase [4] - Revenues from software updates and maintenance were $233.10 million, below the average estimate of $238.95 million, reflecting a year-over-year decline of 0.9% [4] - Revenues from products and licenses were reported at $114.10 million, surpassing the average estimate of $104.73 million, indicating a year-over-year increase of 13.8% [4] - Revenues from security subscriptions totaled $290.60 million, slightly below the average estimate of $292.02 million, but still showing a year-over-year growth of 10.3% [4] Stock Performance - Over the past month, Check Point's shares have returned -7.9%, compared to a -6.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Check Point Software reported quarterly earnings of $2.21 per share, exceeding the Zacks Consensus Estimate of $2.19 per share, and showing an increase from $2.04 per share a year ago, indicating a positive earnings surprise of 0.91% [1] Financial Performance - The company achieved revenues of $637.8 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.22% and reflecting a year-over-year increase from $598.8 million [2] - Over the last four quarters, Check Point has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Stock Performance - Check Point shares have appreciated approximately 13.7% since the beginning of the year, contrasting with the S&P 500's decline of 10.1% [3] - The current consensus EPS estimate for the upcoming quarter is $2.37, with expected revenues of $662.72 million, and for the current fiscal year, the EPS estimate is $9.91 on revenues of $2.71 billion [7] Industry Outlook - The Zacks Industry Rank indicates that the Security industry is currently in the top 29% of over 250 Zacks industries, suggesting a favorable outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the Month of April 2025 Commission File Number 0-28584 Check Point Software Technologies Ltd. (Translation of registrant's name into English) 5 Ha'solelim Street, Tel Aviv, Israel (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Washington, D.C. ...