Check Point slumps on lower guidance

Investors expressed severe disappointment after Israeli cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP), which resulted in the sharpest fall in the company’s share price for decades. On Thursday, the company’s share price fell 19.6% on an especially high trading turnover, with a slight recovery on Friday when the share price rose 1.81% to $114.51. The share price reflects a market cap of $11.90 billion, making it only the sixth most valuable Israeli company on Wall Street, after it was the most valuable company for a sustained period.

Check Point buys 3 Israeli startups for over $150m

Check Point, led by CEO Nadav Zafrir, reported on Thursday revenue of $668 million in 2025 and non-GAAP earning per share of $2.50 per share and $265 million net profit. Revenue was lower than analysts’ estimates and profit was higher. The company said that changes in its sales organization (including personnel changes) are leading to a slowdown in firewall product sales in the first quarter, a trend that is expected to continue in the second quarter. Check Point noted that this is a short-term effect, and at the same time there is an acceleration in subscription revenue, which is the company’s main growth engine. However, it cut annual revenue guidance from $2.83-2.95 billion to $2.77-2.85 billion, annual growth of 1.9%-4.6%. There is no change in the profit forecast.

Some analysts covering Check Point have lowered their price target for the share. Jonathan Ruykhaver of Cantor maintained a “neutral” recommendation on the stock, but cut the price from $175 to $150, 31% below the current price. He said the price target reflects his belief in Check Point’s core products and platform strategy, but he remained cautious about the growth outlook.

Analyst Joseph Gallo of Jefferies maintained a “buy” recommendation on the stock, lowering the price target from $200 to $160, a 40% cut. Gallo believes the changes in Check Point’s sales organization will create “confusion and disruption” that will weigh heavily on sales in the second quarter, but notes that management is optimistic about sales in the second half.

Published by Globes, Israel business news – en.globes.co.il – on May 3, 2026.

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