Check Point Software expects boost from AI cyber protection as Q4 profit jumps

By Steven Scheer

JERUSALEM, Feb 12 (Reuters) – Check Point Software Technologies beat expectations for fourth-quarter profit on Thursday, and said a fast-growing need to protect computer networks from artificial intelligence-led cyber threats would help drive growth in 2026.

Companies are expected to spend more on cybersecurity in the coming years on fears that AI will help hackers use more sophisticated ways to attack their networks and disrupt their businesses.

CEO Nadav Zafrir said “everything that we built in the last couple of decades needs to be revalidated,” as attackers use AI-powered malware tools to breach computer systems.

“We’re seeing new attack vectors and new capabilities every day … creating vulnerabilities and threats that are really unprecedented…,” he told reporters.

The Israeli-based network security company reported $3.40 per diluted share, excluding one-off items, for the April-June quarter, up 26% from $2.70 a year earlier. Revenue grew 6% to $745 million.

Analysts were expecting $2.77 a share on revenue of $746 million, according to LSEG data.

On Wednesday, rival Palo Alto Networks completed its $25 billion purchase of CyberArk to bolster its business in the AI era. It also said it would dual-list in Tel Aviv.

When asked whether Check Point would follow suit, Zafrir suggested the firm would continue to solely trade on Nasdaq despite being an Israeli company.

“We have our IP here, we have our R&D here, we have our management here, and we pay taxes here” in Israel, he said.

In all of 2025, revenue grew 6% to $2.73 billion – in line with expectations – while adjusted earnings per share rose 30% to $11.89, above the consensus estimate of $11.28.

Check Point said during the fourth quarter of 2025 it bought back about 2.2 million of its shares at a total cost of about $425 million.

(Reporting by Steven Scheer; Editing by Anil D’Silva)