Check Point Software advances in U.S. federal authorization

REDWOOD CITY, Calif. - Check Point Software Technologies Ltd. (NASDAQ: CHKP), a leading provider of cyber security solutions with a market capitalization of $22.38 billion and impressive gross profit margins of 88%, announced today that it has reached a significant milestone in its efforts to provide services to the U.S. government. According to InvestingPro data, the company maintains strong financial health with more cash than debt on its balance sheet, positioning it well for government contracts. The company has achieved the "In Process" status for the Federal Risk and Authorization Management Program (FedRAMP) Moderate baseline, a critical step towards obtaining full FedRAMP Authorization.

This advancement allows U.S. federal agencies to consider Check Point’s security offerings, which include advanced threat protection and real-time threat intelligence, for their needs in safeguarding systems against both known and emerging cyber threats. The "In Process" designation indicates that Check Point is actively engaged with a federal agency sponsor, working towards meeting the stringent security requirements for full authorization. With annual revenue of $2.6 billion and 13 analysts recently revising earnings estimates upward according to InvestingPro, the company demonstrates strong market momentum.

FedRAMP is a government-wide program that standardizes security assessment, authorization, and continuous monitoring for cloud products and services. Check Point’s pursuit of FedRAMP Authorization demonstrates its commitment to delivering secure and reliable solutions that comply with federal security standards.

Avi Rembaum, President of Americas Sales at Check Point Software Technologies, stated, "Achieving FedRAMP ’In Process’ status is a critical milestone in our mission to provide robust and compliant cyber security solutions to the U.S. government. We are dedicated to supporting federal agencies in securing their digital assets against ever-evolving cyber threats."

The company’s progress towards FedRAMP Authorization underscores its dedication to enhancing cyber security measures for government information systems. As Check Point continues its journey to full FedRAMP Authorization, interested parties can track its status on the FedRAMP Marketplace.

Check Point Software Technologies is recognized for its AI-powered cyber security solutions that protect over 100,000 organizations worldwide. The company emphasizes a prevention-first approach, aiming to deliver industry-leading security efficacy and reduce risk. Financial metrics from InvestingPro show the company’s strong performance with a return on equity of 31% and robust free cash flow generation. InvestingPro subscribers can access over 10 additional key insights and a comprehensive Pro Research Report, offering detailed analysis of Check Point’s market position and growth potential.

This information is based on a press release statement from Check Point Software Technologies Ltd.

In other recent news, Checkpoint Software’s first-quarter earnings for fiscal year 2025 have drawn significant attention, with the company reporting a notable 14% year-over-year increase in product revenue. This marks the highest growth since the second quarter of fiscal year 2011. The company’s Remaining Performance Obligations (RPO) also saw an 11% increase, contributing to a strong start to the fiscal year. Despite these positive results, Checkpoint has taken a cautious approach to its second-quarter guidance, aligning it with consensus estimates while maintaining its full-year guidance for 2025.

Analyst reactions to Checkpoint’s performance varied, with Stifel and Cantor Fitzgerald maintaining a Hold and Neutral stance, respectively, both with a price target of $220. Truist Securities, however, reiterated a Buy rating with a higher target of $250, citing confidence in the company’s strategic focus on Secure Access Service Edge (SASE) and Artificial Intelligence (AI). Meanwhile, Stephens adjusted its price target down to $229, maintaining an Equal Weight rating, reflecting a conservative outlook amidst economic uncertainties.

Raymond James maintained an Outperform rating with a price target of $240, emphasizing Checkpoint’s stable forward guidance and resilience to potential tariff impacts. The firm also noted a positive shift in company culture under new leadership, with strategic moves to increase international market share. These developments come as Checkpoint continues to navigate a challenging macroeconomic environment while focusing on innovation and growth in the cybersecurity sector.

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