Geopolitical currents in the Middle East have pushed investors toward defensive tech names that could continue to weather volatile market conditions and corporate spending. Amid this chaos, cybersecurity and enterprise-software companies often shine because their services remain mission-critical even when budgets are tight.
Amidst this chaos, Webish identified 10 tech stocks to own. Among these options, Checkpoint Software Technology (CHKP) emerges as a lesser-known but important contender. Analysts at Wedbush Securities flagged CHKP as “well positioned,” citing the company’s efforts to build a competitive suite of SASE, ERM, and its email integration offering. Wedbush also sees AI as a faster driver of deal flow for Checkpoint, helping the company win defense enterprise spending.
For investors looking for a relatively stable tech play with clear cybersecurity and AI tailwinds amid geopolitical risk, CHKP is a name worth a close look.
Based in Tel Aviv, Checkpoint Software is a global cybersecurity company. It offers hardware and cloud-based software solutions, including firewalls, threat prevention, and endpoint protection, that help enterprises and governments defend digital networks. With a $2.7 billion annual revenue base and high margins, Checkpoint has long targeted large organizations and service providers.
Checkpoint is active on the M&A front, as in Q1 2026, it announced agreements to acquire three cybersecurity startups. These include Cyata AI/Government Security, Cyclops, and Rotate. The $150 million-plus deal expands its AI security and managed services capabilities. Additionally, just a few days ago, Checkpoint also launched a secure AI consulting service to help enterprise customers manage and scale AI projects. These moves fuel signal management pressure in the fast-growing AI and cloud-security spaces.
Valued at about $17.5 billion by market capitalization, CHKP shares have underperformed in 2025 and early 2026. The stock is down about 26% over the past 52 weeks and about 12% year-to-date (YTD). That slide reflects mixed Q4 earnings and cautious 2026 guidance, which sent the stock tumbling on earnings day. The share price fell nearly 6% immediately after the Q4 report. In addition, weakness in the broader technology sector also weighed on Checkpoint shares, as investors worried about slower growth. Still, the pullback leaves CHKP trading well above its 52-week high, with some analysts arguing that it now offers value for risk.
After returning, the checkpoint does not seem too expensive. While the P/E is 19, which is attractive compared to the sector median of 30, the price-to-sales ratio is significantly higher at 7, suggesting slightly more value than peers. In other words, Checkpoint’s value is moderate, cheaper than hyper-growth cyber names, but still not cheap by consumer tech standards.
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Just days ago, Wedbush named Checkpoint among its top “essential” tech stocks amid the Iran/Middle East conflict. The company noted that companies related to cyber security and defense can provide stability when tensions rise. This sharp determination contrasts with the recent market reversal in CHKP’s mixed guidance.
In fact, when Checkpoint issued a warning in Q1 and lowered its earnings outlook, the stock sold off sharply. However, Wedbush’s endorsement may help restore investor confidence. In short, analysts view Checkpoint as a defensive play. It has continued subscription sales and R&D investment in AI security, which can benefit from higher demand during crises.
Checkpoint’s latest quarterly report showed strong year-over-year (YoY) growth, yet missed analyst estimates on the top line. Total revenue was $745 million, up 6% from last year. Of that, about $325 million came from recurring security subscriptions, up 11% from last year, underscoring steady demand.
The good part is that both net income and EPS jumped. EPS came in at $2.81, marking an increase of 22%. Additionally, operating margins remained strong at 31% on a GAAP basis.
CEO Nida Zareer commented, “We delivered strong fourth quarter results, with revenue down from the midpoint of our outlook and EPS exceeding expectations.” He noted the broad customer adoption of Check Point’s security platforms and its focus on “AI-powered security.”
The company has also generated healthy cash flow. During the year, Checkpoint repurchased about $1.4 billion of stock and ended up with about $4.3 billion in cash and marketable securities at the end of 2025. Free cash flow remained strong, supporting both acquisitions and returns to shareholders.
Looking ahead, for Q1 2026, management conservatively guided for revenue of $655 million to $685 million and EPS of $2.35 to $2.45. They are proposing full-year 2026 EPS of $10.05 to $10.85. The analyst consensus is around $8.61 EPS for 2026, which means Checkpoint is looking at a significant beat. The modest guidance reflects a slight reduction in expected investment and enterprise spending. CFO Ygal Elbaz noted on the phone that hard costs in some markets could weigh in the short term, but he emphasized that Check Point’s broad product portfolio, networking, cloud, IoT security, etc., positions it well for long-term growth.
Wall Street tech against CHKP is mixed but downgrades from neutral to bullish. Wedbush’s Don Ives maintained an “outperform” rating, with a $210 price target on Checkpoint’s “must own” defense/security pick.
Conversely, Morgan Stanley recently lowered its outlook. It cut CHKP’s target to $193, citing slower growth and margin pressures. Goldman Sachs also declined: It lowered its target to $186 while maintaining a “hold” rating after the quarter.
On the bullish side, BMO Capital and TD Cowen continue to rate CHKP “outperform” with targets of $210 to $260, arguing that Checkpoint’s balance sheet and securities DNA justify a premium.
Overall, the consensus among 36 analysts is “rational buy” and the average 12-month price target is around $204, indicating a 25% upside from current levels.
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As of the date of publication, Nauman Khan had no position (either directly or indirectly) in any of the matters mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
