Israeli cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) has beaten the analysts’ expectations in its third quarter 2025 results due to a tax settlement that it signed to update its tax provisions resulting in a one-time payment that significantly boosted net profit. The company, managed by CEO Nadav Zafrir, reported revenue of $678 million in the third quarter, up 6.7% from the corresponding quarter of 2024. The company’s share price is up 11.62% in premarket trading on Wall Street.
GAAP operating profit fell 8.9% to $199 million but GAAP net profit jumped 73.4% to $359 million, due to the $131 million net tax revenue from the tax settlement.
Check Point CFO Roei Golan told journalists that during the quarter, Check Point signed tax settlements in Israel and elsewhere in the world, paying about $66 million. “Check Point pays taxes worldwide, tax authorities have requirements and we make provisions accordingly,” Golan noted. The settled assessments created the one-time tax benefit.
Most of the amount paid was in Israel, following discussions with the Israel Tax Authority for 2016-2020 (in its extended reports for 2024, Check Point noted that the Israel Tax Authority demanded NIS 517 million from it, not including an additional NIS 459 million that would be deductible in future years relative to 2016-2020, and the parties have now reached a settlement).
Non-GAAP net profit in the third quarter was $431 million, or $3.94 per share, while analysts had forecast $2.45 per share. Check Point notes that the impact of the tax arrangements contributed about $1.47 to net profit per share. So even excluding the one-time addition, Check Point would have beaten analysts’ forecasts. At the same time, Golan said that the strengthening of the dollar, mainly against the shekel, cut $0.07 from earnings per share in the quarter.
In the first three quarters of 2025, Check Point saw revenue of $1.98 billion, compared with $1.86 billion in the corresponding period of 2024, and non-GAAP net profit rose 27.6% to $939 million.
Check Point generated $241 million in cash flow from operating activities during the quarter and spent $325 million to buy back shares (about 1.6 million shares, at an average price of about $203.10). The company reports that it paid about $160 million during the third quarter for land for its new campus in Tel Aviv. Check Point also recently announced the acquisition of Lakera, an AI cybersecurity company, in a deal valued at about $300 million. At the end of the third quarter, Check Point had $2.8 billion in cash. Speaking to reporters, Zafrir said that the acquisitions that Check Point makes depend heavily on the opportunities it identifies, and that he believes that the pace of acquisitions can be expected to increase.
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Zafrir said, “Check Point delivered strong third quarter results, driven by increased demand for our portfolio including Hybrid-Mesh-Network, Workspace and External Risk Management (ERM). We also advanced our AI First strategy through the strategic acquisition of Lakera, strengthening our position to deliver a comprehensive, full-stack AI-powered security platform and expand our leadership in next-generation cyber defense.”
Check Point is traded on Nasdaq with a market cap of $20.6 billion.
Published by Globes, Israel business news – en.globes.co.il – on October 28, 2025.
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