Check Point boosts AI security push with 2025 surge

Check Point reported higher revenue and earnings for the final quarter of 2025 and outlined a strategy focused on securing enterprise use of artificial intelligence. It also disclosed three acquisitions aimed at expanding its portfolio for channel partners and managed service providers.

Calculated billings rose 8 percent year on year to USD $1,039 million for the quarter. Total revenue increased 6 percent to USD $745 million, while security subscription revenue grew 11 percent to USD $325 million.

For the full year, calculated billings reached USD $2,906 million, up 9 percent, and total revenue rose 6 percent to USD $2,725 million. Security subscription revenue increased 10 percent to USD $1,219 million.

GAAP operating income for the quarter was USD $233 million, or 31 percent of revenue. Non-GAAP operating income was USD $302 million, or 41 percent of revenue. GAAP earnings per diluted share were USD $2.81 and non-GAAP earnings per diluted share were USD $3.40.

For the full year, GAAP earnings per diluted share were USD $9.62 and non-GAAP earnings per diluted share were USD $11.89. Check Point attributed part of the earnings increase to a lower tax rate and a tax settlement, which benefited both GAAP and non-GAAP results.

Remaining performance obligation, a measure of contracted work yet to be recognised as revenue, rose 8 percent year on year to USD $2,728 million.

AI focus

Management is positioning 2026 around securing AI use "across the enterprise", using a four-pillar approach spanning Hybrid Mesh, Workspace, and Exposure Management, while adding AI-driven security across the product set.

"We delivered solid fourth quarter and full year 2025 results, with revenue landing above the midpoint of our outlook and EPS exceeding expectations. Our performance remained resilient throughout the year, driven by continued customer adoption across our Hybrid Mesh Network and Workspace platforms," said Nadav Zafrir, chief executive officer.

Security vendors have increased investment in AI-related controls as businesses deploy generative AI tools and begin building AI agents that can take actions across corporate applications. The shift has also increased scrutiny from risk and compliance teams seeking clearer visibility into how AI systems connect to data, identity systems, and third-party services.

Three acquisitions

Check Point disclosed three acquisitions in the first quarter of 2026: Cyata, Cyclops, and Rotate. It described the deals as expanding opportunities for channel partners and managed service providers.

Cyata sits within AI security, covering discovery of AI agents across endpoints and software-as-a-service environments, and adding governance and control functions.

Cyclops expands Check Point's exposure management line-up, with a focus on cyber asset attack surface management. It provides discovery and continuous monitoring of assets across cloud, on-premises, operational technology, and SaaS environments. Check Point positioned Cyclops as part of a broader continuous threat exposure management approach.

Rotate is described as an all-in-one platform aimed at managed service providers. Check Point said it acquired Rotate's talent and linked the move to its "Workspace momentum" in the MSP market.

In prepared remarks, Zafrir linked the Cyata purchase to the company's AI security direction. "In 2026, our strategy is centered on securing our customers' AI transformation across the enterprise. We are focused on executing against our four strategic pillars, Hybrid Mesh, Workspace, and Exposure Management, while embedding AI driven security throughout our portfolio. Today's announced acquisition of Cyata further expands our AI security stack, enabling full discovery, governance, and control of AI agents as organizations accelerate their AI journeys," he said.

Cash and buybacks

Check Point ended 2025 with USD $4,342 million in cash balances, marketable securities, and short-term deposits, up from USD $2,784 million at the end of 2024. The increase was primarily driven by USD $1.8 billion of proceeds from a USD $2 billion convertible notes offering, net of issuance costs and a capped call purchase.

It also continued share repurchases, buying back around 2.2 million shares for about USD $425 million during the fourth quarter. For the full year, it repurchased around 6.8 million shares at a cost of about USD $1.4 billion.

Cash flow from operations was USD $310 million for the quarter, up from USD $249 million a year earlier. For the full year, operating cash flow was USD $1,234 million, including a one-time tax payment of about USD $66 million linked to the settlement for prior years.

The balance sheet shows goodwill and other intangible assets of USD $2,118 million at year end, up from USD $1,897 million a year earlier. Convertible senior notes stood at USD $1,972 million.

Check Point plans a series of investor meetings and conference appearances during the first quarter of 2026, where executives are expected to discuss strategy and recent initiatives.