Check Point Software sees AI boosting 2025 revenue, profit as Q4 beats estimates

By Steven Scheer

JERUSALEM (Reuters) -Check Point Software Technologies beat fourth-quarter profit expectations on Thursday, with revenue exceeding $2.5 billion in 2024, and forecast profit growth of up to 11% in 2025.

It said the continued adoption of AI would fuel its growth further this year.

For all of 2024, revenue rose 6% to $2.57 billion, with adjusted earnings per share up 5% to $7.46.

Check Point projected revenue of $2.66 billion to $2.76 billion in 2025, a gain of up to 8% over 2024 and in line with analysts' expectations of $2.71 billion, according to LSEG data. It estimated earnings per share excluding one-off items of $9.60-$10.20, up as much as 11% and compared with expectations of $9.93.

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The Israeli-based network security company reported earnings of $2.70 per diluted share excluding one-off items for the October-December quarter, up 5% from $2.57 a year earlier. Revenue rose 6% to $704 million.

That beat earnings of $2.65 per share on revenue of $699 million expected by analysts, LSEG data showed.

Product, licence and subscription revenues rose 9% in the quarter to $463 million.

"Pretty much all the key financial metrics performed very, very well," said Gil Shwed, who has transitioned to the executive chairman role from chief executive, noting the number of deals rose in all regions and different sectors.

Check Point said it bought back 1.7 million shares in the quarter, worth $325 million, as part of an ongoing $2 billion share buyback programme. In 2024, it bought back 7.7 million shares at a cost of $1.3 billion.

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Industry veteran Nadav Zafrir took over as CEO in December.

Zafrir said a combination of geopolitical tensions and the rise in AI capabilities would continue to drive the company's growth, especially its consolidated cyber security platform that prevents attacks across networks, mobile and the cloud.

"The way attackers take advantage of AI and the way they look at the attack surface is definitely going to change, and we need to be ready for what is very hard for us to imagine about the future," he told reporters.

Zafrir said that while China won't necessarily "change the game", AI options will keep increasing.

"The fact that the price is going down is going to make it more available, which means that the security needs are just going to rise," he said.

Check Point's Nasdaq-listed shares have risen 9.2% so far in 2025 after a 22% gain last year. They were up 10.4% at $225.25 in early trading.

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Check Point projected first-quarter revenue of $619 million to $649 million and adjusted EPS of $2.13 to $2.23. Analysts estimate revenue of $633.2 million and EPS of $2.22.

(Reporting by Steven Scheer; Editing by Barbara Lewis, Mark Potter and Paul Simao)