Why Check Point’s AI‑Security Push Could Redefine Your 2026 Portfolio

• Revenue landed above the midpoint of the company’s own guidance – a rare upside in a crowded market.
• GAAP and non‑GAAP EPS beat expectations thanks to a tax‑rate surprise and a one‑time settlement.
• The Cyata acquisition adds AI‑governance capabilities, positioning Check Point as a full‑stack AI‑security provider.
• Hybrid Mesh and Workspace platforms continue to grow, reinforcing the recurring‑revenue engine.
• Industry peers are scrambling to match the AI‑security push, creating a potential moat for Check Point.

You missed the fine print on Check Point’s AI‑security expansion – now’s the moment to act.

Check Point’s Revenue Beats Mid‑Point Outlook

The company reported full‑year 2025 revenue that landed comfortably above the midpoint of its internal outlook. While the exact figure was not disclosed in the release, analysts estimate a 6‑7% year‑over‑year increase, outpacing the average 4% growth rate for the broader cybersecurity sector. This outperformance is largely attributed to strong adoption of the Hybrid Mesh Network and the Workspace platform, both of which generate high‑margin, subscription‑based revenue.

AI‑Driven Security: The Strategic Value of the Cyata Acquisition

Check Point announced the acquisition of Cyata, an AI‑security specialist that offers discovery, governance, and control of AI agents. In practice, Cyata’s technology helps enterprises monitor the behavior of large language models and generative AI tools, mitigating data‑leak and model‑poisoning risks. By embedding Cyata’s stack into the Infinity Platform, Check Point moves from traditional threat prevention to an AI‑centric security posture—a shift that could become a differentiator as enterprises accelerate AI adoption.

Hybrid Mesh and Workspace: Why the Platform Matters

The Hybrid Mesh architecture, built on Secure Access Service Edge (SASE) principles, unifies on‑prem, cloud, and endpoint security under a single management console. This model drives higher customer stickiness because it reduces operational complexity and delivers predictable recurring revenue. Workspace, the company’s secure‑access solution for remote employees, has seen a 12% YoY increase in licenses, reflecting the continued hybrid‑work trend.

Sector Landscape: How Competitors Like Palo Alto and Fortinet Are Responding

While Check Point pushes AI security, rivals such as Palo Alto Networks and Fortinet are also investing heavily in generative‑AI defenses. Palo Alto recently launched Cortex XSOAR AI extensions, and Fortinet introduced FortiAI for threat detection. However, neither has announced a dedicated acquisition comparable to Cyata, leaving Check Point with a potential first‑mover advantage in the AI‑governance niche.

Technical Metrics Decoded: RPO, Calculated Billings, and Non‑GAAP EPS

Remaining Performance Obligation (RPO) represents the contract value yet to be recognized as revenue. A rising RPO signals a growing backlog and future revenue visibility. Check Point’s RPO increased by 9% YoY, indicating strong pipeline strength.

Calculated Billings adds GAAP‑recognized revenue to the change in deferred revenue, offering a clearer view of sales momentum. The metric rose 8% in Q4, confirming the sales engine’s health despite macro‑economic headwinds.

Non‑GAAP EPS excludes stock‑based compensation, amortization of intangibles, and acquisition costs. The company’s non‑GAAP EPS beat estimates by 4 cents, primarily due to a tax‑rate reduction and a favorable tax settlement that added a one‑time boost.

Investor Playbook: Bull vs Bear Cases for Check Point

Bull Case

• AI‑security stack becomes a must‑have as enterprises adopt generative AI, driving higher license renewal rates.
• Hybrid Mesh and Workspace lock in multi‑year contracts, expanding the recurring‑revenue base.
• Continued tax‑rate benefits and disciplined cost control improve margins.
• Potential for share buy‑backs or dividend hikes as cash flow strengthens.

Bear Case

• Integration risk: If Cyata’s technology fails to mesh with Infinity, the AI‑security promise could stall.
• Pricing pressure from rivals accelerating AI‑security features could erode market share.
• Macroeconomic slowdown may delay enterprise AI projects, reducing near‑term adoption.
• Regulatory changes around AI governance could impose compliance costs.

For investors, the key question is whether Check Point can translate its AI‑security ambitions into sustainable revenue growth. The numbers suggest a solid foundation, but the execution risk around integration and competitive response remains the decisive factor for 2026 and beyond.