Check Point Software Technologies (CHKP) reported first quarter 2026 results with revenue of US$668.4 million and net income of US$191.6 million, as investors weighed stronger subscriptions against weaker product and license performance.

The first quarter update and revised 2026 outlook landed alongside a sharp reset in expectations, with a 1 day share price return decline of 19.64% and a 1 year total shareholder return decline of 47.45%, signalling that momentum has faded recently despite ongoing work around subscriptions and AI security.

If the reaction to Check Point’s results has you reassessing your watchlist, it can be useful to see what else is moving in related areas through 38 AI infrastructure stocks

With the share price down sharply and the stock trading at a discount to analyst targets and some intrinsic estimates, investors need to consider whether the recent weakness has created an opening or if the market already reflects Check Point’s future growth.

Most Popular Narrative: 42.7% Undervalued

At a last close of $112.47 against a narrative fair value of $196.30, the current pricing sits well below what analysts collectively model for Check Point.

The Infinity platform continues to gain traction, with strong double digit revenue growth and increased customer adoption, now accounting for over 15% of total revenue. This supports expectations for revenue growth through enhanced customer retention and cross selling opportunities.

Read the complete narrative. Read the complete narrative.

Want to see why this valuation leans so high on future cash generation? The narrative leans heavily on steady top line expansion, firm margins, and a richer earnings multiple. Curious which assumptions really move the fair value line? The full breakdown joins those threads together.

Result: Fair Value of $196.30 (UNDERVALUED)

However, investors still need to watch for competitive pressure in SASE and AI security, as well as any delays in customer deals that could challenge this upbeat narrative.

Next Steps

If this mix of weak momentum and optimistic narratives feels somewhat divided, do not hesitate to review the numbers yourself and decide how you feel about the 4 key rewards

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.