BMO Capital lowered Check Point Software’s price target on weak demand and FY26 revenue uncertainty while maintaining its Outperform rating.
BMO Capital reduced Check Point Software Technologies Ltd. (NASDAQ:CHKP) price target to $135 from $210, citing weak demand metrics and uncertainty around second-half FY26 revenue growth. The firm maintained an Outperform rating but warned the stock may remain under pressure until clearer growth improvement emerges.
Check Point reported $668 million in Q1 2026 revenue, a 5% year-over-year increase, with subscription revenue rising 11% to $323 million. GAAP operating income was $185 million, while non-GAAP operating income reached $265 million, reflecting a 40% margin. Earnings per share grew 5% to $1.81 on a GAAP basis and 13% to $2.50 non-GAAP.
CEO Nadav Zafrir noted product revenue challenges due to go-to-market changes but highlighted strong subscription demand in email security, exposure management, and SASE.