In shadow of $20B cyber deal, Check Point stays the course with modest Q2 gains

Against the backdrop of reports that Palo Alto Networks is preparing for its largest acquisition to date, potentially acquiring CyberArk for over $20 billion, Check Point Software has opened the Israeli Nasdaq earnings season. Its Q2 results slightly exceeded analysts’ expectations and landed within the forecast range it provided three months ago. However, they offered no signs of accelerated growth, which remains a persistent concern.

That may help explain why Check Point and CyberArk, whose stock jumped 13% on Tuesday following news of acquisition talks with Palo Alto, are now trading at similar market values of approximately $23 billion and $21 billion, respectively. Palo Alto, founded by Nir Zuk, one of Check Point’s earliest employees, has long since distanced itself from its former parent in scale and ambition. A large acquisition like CyberArk, or SentinelOne, with which it also recently held talks, would further intensify competition in the already crowded cybersecurity sector.

Check Point, led since late 2024 by CEO Nadav Zafrir, ended the second quarter with $665 million in revenue, marking 6% year-over-year growth.

Where Check Point continues to shine is profitability: the company posted an operating profit of $204 million, representing a 31% margin. Net income reached $271 million, or $2.37 per share. “The third quarter is shaping up well with strong July indicators,” said Zafrir. “We have a healthy pipeline heading into the second half of the year underscoring our full-year outlook.”

pany posted an operating profit of $204 million, representing a 31% margin. Net income reached $271 million, or $2.37 per share. “The third quarter is shaping up well with strong July indicators,” said Zafrir. “We have a healthy pipeline heading into the second half of the year underscoring our full-year outlook.”