Check Point, other cybersecurity firms dip, as quarterly earnings unfurl

Check Point Software (NASDAQ:CHKP), along with other firms in the cybersecurity space, fell Thursday as quarterly earnings in the sector roll out.

Check Point slipped 4% by noon trading despite releasing first quarter results this morning that topped expectations.

Check Point also released second quarter guidance, projecting earnings per share ranging from $2.10 to $2.20 on revenue ranging from $607M to $637M. These are relatively in-line with the analysts’ consensus expecting earnings per share of $2.16 on revenue of $623M.

Check Point also announced a new partnership with Nvidia (NVDA) to release the “world’s first AI infrastructure firewall.”

Cybersecurity firm Tenable Holdings (TENB) dropped 2% ahead of its financial results due out post-market on May 1.

Fortinet (FTNT), which releases its financial results next Thursday, was down 3%. Cloudflare (NET), which releases on the same day, fell 1.5%, while CyberArk (CYBR) dipped a fraction of a percent.

Palo Alto Networks (PANW) was down nearly 2%, while SentinelOne (S) slid 2% and Zscaler (ZS) dropped 1.3%.

Analysts still believe cybersecurity is a high-demand market, but some businesses are worried about costs as AI-powered security emerges, such as Check Point’s Infinity AI Copilot.

“Industry conversations reflect an accelerating threat environment, the volume of identities is increasing at an exponential rate, and recent high-profile and costly attacks have driven awareness and demand a step function higher,” said J.P. Morgan’s Brian Essex, in an industry note.

“Cyber continues to be a top priority for companies, but spend scrutiny remains,” said Jefferies analyst Joseph Gallo in a note.