Check Point Software stock falls as Mizuho cuts price target on billings miss

Published 30/07/2025, 20:44
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Investing.com - Mizuho (NYSE:MFG) lowered its price target on Check Point Software (NASDAQ:CHKP) to $215.00 from $240.00 on Wednesday, while maintaining a Neutral rating, following the cybersecurity company’s second-quarter results. The company, currently valued at $20.06 billion, maintains impressive gross profit margins of 88.26% and shows strong financial health according to InvestingPro analysis.

The company reported total second-quarter billings growth of 3%-4% year-over-year to $642 million, falling short of Street estimates of $649 million, as several seven-figure deals slipped into the third quarter. Mizuho noted these delayed deals have subsequently closed. InvestingPro data reveals the company holds more cash than debt on its balance sheet, suggesting strong financial flexibility despite the temporary slowdown.

Check Point’s total revenue increased 6% year-over-year, modestly exceeding consensus expectations, driven by product revenue growth of 12% year-over-year, which surpassed Street forecasts of 6%. Subscription revenue growth slowed to 9.6%, falling below analyst estimates.

The company provided third-quarter revenue guidance in line with consensus and reiterated its full-year outlook. Check Point shares fell approximately 14% in Wednesday’s trading session following the results.

Mizuho expressed concerns that after two consecutive underwhelming quarters and rising investor expectations in recent months, Check Point "still has much to prove" regarding its ability to meaningfully accelerate business growth.

In other recent news, Check Point Software Technologies reported second-quarter results that surpassed analysts’ expectations. The company’s revenue rose by 6%, driven by strong performance in its emerging technologies portfolio and Quantum Force appliances. These results highlight the company’s ability to capitalize on new technological trends. The announcement of these better-than-expected earnings was met with positive reactions from the market. The focus on emerging technologies indicates a strategic direction that may continue to influence future performance. While the company’s stock showed a slight increase following the announcement, the emphasis remains on the solid financial results. Check Point Software’s recent performance demonstrates its ongoing adaptability in the competitive technology sector.

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