FBN Securities has lowered its 12-month price objective on Check Point Software (NASDAQ:CHKP) to $200.00, down from $220.00, while leaving its rating at Outperform. The research firm attributed the change to multiple contraction occurring in the wider software space, even as Check Point’s most recent quarter delivered a mix of stronger and weaker results.
Market data from InvestingPro indicates the stock shows a price-to-earnings ratio of 18.28, a level the dataset characterizes as indicating the shares appear undervalued relative to near-term earnings growth potential. InvestingPro also reports that Check Point sustains a high gross profit margin of 87.97%.
In its fourth-quarter results, Check Point recorded revenue growth of 6% year-over-year, a pace described as slightly below consensus. Billings rose 8% year-over-year, beating consensus by 2%. The company’s non-GAAP operating margin was 40.6%, representing a decline of 3.0 percentage points compared with the year-ago quarter and coming in 0.7 percentage points shy of consensus expectations.
Check Point’s remaining performance obligations, or RPO, increased by 8% year-over-year. That growth was a modest deceleration from the 9% expansion seen in the prior quarter, a change the company reported occurred against a 3 percentage point tougher comparison.
FBN Securities provided regional estimates showing growth moderation in the Americas, an acceleration in parts of Asia, and more modest gains in EMEA. The firm estimated Americas growth slowed to 7% year-over-year from 10% in the prior quarter. EMEA growth was estimated at 5%, while Asia-Pacific and Japan delivered stronger growth of 11% year-over-year. The stock also carries a low beta of 0.6, indicating historically lower volatility relative to the broader market.
Additional details from the quarter show mixed operational signals. Check Point reported adjusted earnings per share of $3.40, exceeding a forecast of $2.76 and generating a 23.19% surprise to the upside on EPS. Revenue for the period was $744.9 million, narrowly missing the expected $746.33 million. Company commentary attributed the revenue shortfall to product revenue not meeting forecasts despite robust subscription demand.
Following the release of fourth-quarter results and guidance for 2026, several brokerages updated their views. Cantor Fitzgerald reduced its price target to $190 from $200 and maintained a Neutral rating. BTIG reiterated its Neutral rating as well. Fourth-quarter billings were reported at $1,039 million, up 8.3% year-over-year and ahead of Street expectations of $1,024 million. However, operating income missed BTIG’s forecasts by 2.6%.
Taken together, the analyst moves and the underlying operating metrics underscore a nuanced financial picture: billings strength and earnings beats on an adjusted basis contrasted with a slight revenue miss, lower non-GAAP operating margins, and a regional mix that shows pockets of deceleration. These dynamics appear to be influencing valuation assumptions within the software sector and guiding the recent price-target changes from multiple firms.
Clear summary: FBN Securities trimmed its price target on Check Point to $200 from $220 while keeping an Outperform rating, pointing to multiple contraction in the software sector. Check Point posted mixed Q4 results with billings and adjusted EPS beating expectations but revenue and operating margin falling short of consensus. Other brokerages adjusted targets and maintained or reiterated Neutral ratings.