Check Point not for sale, says CEO as Palo Alto buys CyberArk for $25B
“We have a strategy to be the number one player in the world,” said Nadav Zafrir after the company announced its Q2 results. “Strategic acquisitions are definitely a part of that. We always have the option to build, buy, or do both at the same time.”
Check Point CEO Nadav Zafrir said Wednesday the company is not pursuing a sale, even as consolidation reshapes Israel’s cybersecurity landscape. His comments came on the same day Palo Alto Networks announced a $25 billion acquisition of CyberArk, following Google’s $32 billion purchase of Wiz earlier this year.
“We have a strategy to be the number one player in the world,” Zafrir told reporters. “Strategic acquisitions are definitely a part of that. We always have the option to build, buy, or do both at the same time.”
Check Point shares dropped by over 13% on Wednesday.
Zafrir said the company has not been approached by Palo Alto and is not interested in such a deal. Instead, Check Point plans to use its $3 billion in cash to pursue its own M&A strategy.
The company reported second-quarter earnings of $2.37 per diluted share, excluding one-off items, a 9% increase from the same period last year, and roughly in line with the $2.36 forecast from LSEG analysts. Revenue rose 6% to $665 million, slightly ahead of expectations.
Product and license revenue climbed 12% to $132 million, while security subscription revenue increased 10% to $298 million.
Zafrir said the company is seeing strong momentum heading into the second half of the year. “The third quarter is shaping up well with strong July indicators,” he said. “We have a healthy pipeline.”
Check Point expects Q3 revenue between $657 million and $687 million, representing up to 8% year-over-year growth, with adjusted earnings per share in the range of $2.40 to $2.50, up as much as 11%. The company reaffirmed its 2025 guidance for $2.66 billion to $2.76 billion in revenue, and adjusted EPS between $9.60 and $10.20.
The company also bought back 1.5 million shares during the second quarter, spending approximately $325 million.
