Core Viewpoint - Truist has lowered the price target for Check Point (CHKP) to $225 from $250 while maintaining a Buy rating, indicating a cautious yet optimistic outlook for the cybersecurity sector in Q4 [1] Group 1: Company Insights - Check Point (CHKP) is expected to report strong performance in calendar Q4, with a conservative guidance approach that may lead to a continued beat-and-raise trend for 2026 [1] - The firm’s conversations with IT budget holders and software sellers suggest that demand and the macro environment remain stable, with ongoing momentum in Security & AI initiatives [1] Group 2: Industry Trends - The software equity sector, including cybersecurity, is facing significant pressure as investors shift focus towards AI hardware, which has contributed to a decline in the IGV – iShares Expanded Tech-Software Sector ETF, down approximately 7% in the early weeks of trading [1] - Concerns regarding AI-driven competitive disruption, slow monetization of AI features, prolonged high interest rates, and geopolitical shocks are impacting the overall sentiment in the software sector [1]

Core Viewpoint - Check Point Software Technologies Ltd. (CHKP) has been under observation for its performance over the last 8 months, maintaining a Hold rating due to its investment strategy focusing on a mix of growth, value, and dividend-paying stocks [1] Company Performance - The analysis indicates a long-term investment horizon of 5-10 years, suggesting that the company is viewed as a stable investment option within a diversified portfolio [1] Investment Strategy - The investment approach emphasizes simplicity, with a preference for value stocks, while also engaging in options trading occasionally [1]

Core Viewpoint - China has mandated that companies discontinue the use of cybersecurity products from American and Israeli firms, citing concerns over data security and potential ties to intelligence agencies [1][3][4]. Group 1: Government Directive - Chinese companies are required to identify and replace cybersecurity products from specified foreign firms with domestic alternatives by the first half of 2026 [2]. - The directive aims to prevent sensitive data from being sent overseas and to mitigate vulnerabilities for customers [2]. Group 2: Accusations and Market Reaction - The document alleges that US and Israeli cybersecurity firms have connections to intelligence agencies, although no evidence was provided [3]. - Following the announcement, several Chinese cybersecurity stocks experienced significant gains, with NSFOCUS Technologies rising by 14.7% and Qi An Xin Technology increasing by 9.6% [3]. Group 3: Companies Affected - The ban includes companies such as Palo Alto Networks, Fortinet, Check Point, Recorded Future, CrowdStrike, and others, with some of these firms not selling products in China [5]. - Representatives from Check Point and Orca Security stated they had not received any notification regarding the ban [5].

Core Viewpoint - Check Point Software Technologies Ltd. is set to release its financial results for Q4 and the full year ending December 31, 2025, on February 12, 2026, before U.S. markets open [1] Group 1: Financial Results Announcement - The financial results will be announced on February 12, 2026, before the U.S. financial markets open [1] - Management will conduct a video conference call with the investment community at 8:30 AM EST/5:30 AM PST on the same day [1] - A live video webcast of the call will be available on the company's website [1] Group 2: Company Overview - Check Point is a leading provider of cyber security solutions, protecting over 100,000 organizations globally [2] - The company utilizes AI-powered solutions and its Infinity Platform to deliver industry-leading security efficacy while reducing risk [2] - Check Point's hybrid mesh network architecture with SASE at its core unifies management across on-premises, cloud, and workspace environments [2]

Core Viewpoint - The presentation features Check Point, a key player in the cybersecurity industry, highlighting its significance in the current market landscape [1]. Group 1: Company Overview - Check Point is being presented as a leading company in the cybersecurity sector, indicating its importance and relevance in today's digital environment [1]. Group 2: Research Context - The presentation is part of a broader research initiative by Morgan Stanley, emphasizing the firm's commitment to providing insights into the cybersecurity market [1].

Core Insights - Check Point Software Technologies has launched its new Quantum Firewall Software R82.10, which introduces over 20 new capabilities aimed at enhancing AI security, enforcing Zero Trust principles, and providing unified protection for hybrid mesh networks [1][2]. Group 1: AI Adoption and Security - The R82.10 software strengthens oversight of AI-driven activities by detecting unauthorized generative AI tools and expanding visibility into AI applications like ChatGPT and Claude [4]. - The software supports a prevention-first model, helping enterprises manage risks associated with AI-generated threats and identity abuse [2][3]. Group 2: Hybrid Mesh Network Security - R82.10 offers centralized internet access management for Secure Access Service Edge (SASE) and firewalls, improving protection across distributed environments [5]. - Enhanced identity and device posture validation is included to support Zero Trust at scale [5]. Group 3: Modern Threat Prevention - The software introduces phishing protection that operates without HTTPS inspection and adaptive Intrusion Prevention Systems (IPS) to reduce alert fatigue [6]. - New Threat Prevention Insights are provided to identify misconfigurations and posture gaps before they can be exploited by attackers [6]. Group 4: Unified Security Platform - R82.10 expands Check Point's open-garden architecture with over 250 integrations, allowing organizations to apply endpoint posture signals directly within Check Point policies [7]. - This integration improves identity-based controls and enforces Zero Trust principles more effectively [7]. Group 5: Industry Context and Future Outlook - The launch of R82.10 is timely as organizations increasingly adopt AI tools, creating new security challenges that require robust solutions [2][3]. - Check Point's approach to embedding AI security into the network stack is seen as a necessary step to enhance organizations' AI security posture [3].

Core Viewpoint - Check Point Software Technologies Ltd. has announced the pricing of $1.75 billion in Convertible Senior Notes due 2030, increasing from a previously announced $1.5 billion offering, with an option for initial purchasers to buy an additional $250 million [1][6]. Group 1: Offering Details - The Notes will be senior unsecured obligations of Check Point, with a maturity date of December 15, 2030, and will not bear regular interest [2]. - The initial conversion rate is set at 4.1042 ordinary shares per $1,000 principal amount of Notes, equating to a conversion price of approximately $243.65 per share, representing a 27.5% premium over the last reported sale price [5]. - The net proceeds from the Offering are estimated to be approximately $1.72 billion, intended for capped call transactions, share repurchases, and general corporate purposes [6][7]. Group 2: Redemption and Repurchase Rights - Check Point may redeem the Notes under specific conditions, including tax-related events or if the last reported sale price of its ordinary shares meets certain thresholds [3][4]. - Holders of the Notes can require Check Point to repurchase the Notes for cash under certain conditions, including a fundamental change [4]. Group 3: Capped Call Transactions - Check Point has entered into capped call transactions to cover the number of ordinary shares underlying the Notes, aimed at reducing potential dilution upon conversion [8]. - The cap price for these transactions is approximately $334.43 per share, representing a 75% premium over the last reported sale price of $191.10 [8]. Group 4: Market Impact and Trading - The establishment of initial hedges for the capped call transactions may influence the market price of Check Point's ordinary shares and the Notes [9]. - Concurrent repurchases of ordinary shares may lead to higher trading prices, potentially affecting the initial conversion price of the Notes [9].

Core Insights - Check Point Software Technologies Ltd. has been recognized as a Leader in the 2025 Gartner Magic Quadrant™ for Email Security, highlighting its excellence in core email protection, integrated email security, and outbound security [1][3][4] - The company’s Harmony Email Collaboration solution utilizes AI-powered protection to combat advanced email threats, which is crucial in today's hyperconnected environment where 68% of attacks start with email [2][4] Company Differentiators - Check Point's AI-driven security solutions are designed for quick setup and vendor consolidation, addressing the challenges faced by enterprise CISOs with limited budgets [2][7] - The company offers a comprehensive workspace protection that includes email, endpoints, AI, SSE, external exposure, and DLP, making it a unique player in the email security market [7][10] - Harmony Email provides strong detection capabilities to block both everyday and sophisticated threats, enhancing organizational defenses against phishing, malware, and business email compromise [2][7] Customer Feedback - Customers have expressed satisfaction with Check Point's solutions, noting that Harmony Email & Collaboration provides peace of mind by silently blocking advanced threats and enabling secure collaboration [4][10] Industry Context - The 2025 Security Report from Check Point Research indicates that 61% of harmful files are sent via HTML attachments, underscoring the importance of robust email security solutions [2]

Core Viewpoint - Check Point Software Technologies Ltd. plans to offer $1.5 billion of 0.00% Convertible Senior Notes due 2030 in a private offering to qualified institutional buyers, with an option for initial purchasers to buy an additional $225 million [1][2]. Group 1: Offering Details - The final terms of the Notes, including the initial conversion price, will be determined at the time of pricing [2]. - The Notes will be senior, unsecured obligations and will mature on December 15, 2030, unless repurchased, redeemed, or converted earlier [2]. - The Notes will not bear regular interest, and the principal amount will not accrete [2]. Group 2: Conversion and Redemption - Holders can convert the Notes under certain conditions before September 16, 2030, and at any time thereafter until two trading days before maturity [2]. - Check Point may redeem the Notes under specific conditions, including tax-related events and if the last reported sale price of its shares meets certain thresholds [3][4]. Group 3: Use of Proceeds - The net proceeds from the offering will be used to pay for capped call transactions and to repurchase ordinary shares, potentially up to $225 million [5]. - Remaining proceeds may be allocated for general corporate purposes, including mergers and acquisitions, business development, and product development [5]. Group 4: Capped Call Transactions - Check Point plans to enter into capped call transactions to cover the number of ordinary shares underlying the Notes, which will help reduce potential dilution upon conversion [6][7]. - The capped call transactions are expected to offset cash payments required in excess of the principal amount of the converted Notes [7]. Group 5: Regulatory and Market Considerations - The Notes will be offered only to qualified institutional buyers under Rule 144A, and the offering has not been registered under the Securities Act [9]. - The press release does not constitute an offer to sell or solicit offers to buy the Notes in jurisdictions where such actions would be unlawful [10].

Core Insights - Artificial intelligence is rapidly transforming enterprises, impacting critical workloads, cloud operations, identity systems, and collaboration tools, leading to new security challenges in evolving AI architectures [1][2]. Event Details - Check Point Software Technologies is hosting a virtual event titled "Securing the AI Transformation in a Hyperconnected World" on December 4, 2025, featuring experts from Check Point, NVIDIA, IDC, and global CISOs [2][6]. - The event aims to provide strategic insights for leaders on securing AI systems across cloud, edge, and distributed networks, rather than showcasing products [3][4]. Learning Objectives - Attendees will learn to build a unified AI-security stack across various environments, detect and prevent emerging threats from AI agents, and adopt a flexible security architecture [9]. Target Audience - The webinar is designed for CISOs, network architects, DevOps leads, CIOs, and security practitioners involved in AI deployment [6]. Company Overview - Check Point Software Technologies is a leader in digital trust protection, utilizing AI-powered cybersecurity solutions to safeguard over 100,000 organizations globally, with a focus on a prevention-first approach [7].