Cantor Fitzgerald reduced its price objective on Check Point Software (NASDAQ:CHKP) to $190.00 from $200.00 on Thursday and maintained a Neutral rating on the cybersecurity vendor. The revised target sits near InvestingPro’s Fair Value estimate and suggests the shares could be undervalued at their current market price of $166.73, which is trading close to a 52-week low.
The analyst action followed Check Point’s fourth-quarter 2025 results, which showed a mixed financial picture. Management reported an earnings per share of $3.40, comfortably ahead of the analyst consensus of $2.76, representing a 23.19% beat. Despite that outperformance on EPS, total revenue came in slightly below forecasts at $744.9 million versus an expected $746.33 million.
Underlying the revenue miss was weakness in product sales. Product revenue of $171.8 million fell short of the forecasted $180.1 million, even as subscription demand strengthened. Billings improved materially, reaching $1,039 million, up 8.3% year-over-year and above the Street expectation of $1,024 million, signaling healthy deferred revenue trends despite the top-line shortfall.
Check Point’s margin profile remains notable: InvestingPro data indicates gross profit margins near 88%. However, the company flagged supply-related pressures that could affect margin performance later in the fiscal year. Management said memory supply is secured for the first two quarters of fiscal 2026 but expects constraints to resurface in the second half, which could create roughly a one percentage point headwind to gross margins.
For fiscal 2026, Check Point provided initial guidance that centers on subscription-led growth. At the midpoint of guidance, subscription revenue is modeled to grow 12%, which implies flat to low single-digit growth in product revenue for the year. Services execution was described as solid, and the company offered an upbeat services guide for fiscal 2026.
Market reaction to the results was sharp. Cantor Fitzgerald noted Check Point shares were trading down about 7.7% intraday after the results were released, compared with a roughly 1.2% decline in the S&P 500, a move the firm attributed largely to investor response to the revenue miss and associated margin concerns.
In related analyst commentary, BTIG maintained a Neutral rating on Check Point following the quarter, noting that operating income missed BTIG’s forecasts by 2.6%. Overall, the quarter presented a mixed set of outcomes: a sizable EPS beat and stronger billings contrasted with a slight revenue shortfall, weaker product sales, and margin pressure tied to anticipated supply constraints.
Contextual takeaway: The combination of subscription strength and durable gross margins supports underlying business resilience, while near-term product weakness and potential second-half supply disruptions create tangible execution and margin risks that have prompted a more cautious price target from Cantor Fitzgerald.