On April 24, 2025, Check Point Software Technologies announced a new partnership with Illumio, integrating their platforms to enhance cybersecurity protocols and advance Zero Trust principles. This collaboration aligns with a 4% rise in Check Point's share price over the last quarter. This price move closely aligns with broader market trends, where the Nasdaq Composite saw considerable gains supported by strong earnings from tech giants and investor optimism. The Illumio partnership, along with recent strategic partnerships and executive appointments, likely reinforced investor confidence during a bullish tech market phase.

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The new partnership between Check Point Software Technologies and Illumio is anticipated to enhance cybersecurity capabilities and align with the company's narrative centered around AI and SASE integration for future growth. This collaboration could bolster revenue growth and improve user experiences as enterprises prioritize comprehensive security solutions. With Check Point's revenue expected to increase by 5.3% annually over the next three years, integrating Illumio's platform may offer expanded customer solutions, contributing positively to earnings forecasts and reinforcing analysts' expectations of $998 million in earnings by 2028.

Over the past five years, Check Point's total shareholder returns, including dividends, reached 93.50%, indicating substantial long-term value creation. In the shorter term, compared to the previous year, Check Point's performance surpassed the US Software industry, which experienced slower returns of 2.2%. This positive trajectory reflects strong company fundamentals and effective market positioning, despite some competitive pressures and macroeconomic challenges described in the analysis.

The recent 4% rise in Check Point's share price aligns with market trends and its published price target of US$235.64, trading at a 10.5% discount. This indicates room for potential appreciation toward analysts' consensus when accounting for expected earnings growth and strategic initiatives. However, investors should consider price targets as one of many factors influencing investment decisions and continue to monitor the evolving cybersecurity landscape and its impact on Check Point's future performance.

The analysis detailed in our Check Point Software Technologies valuation report hints at an deflated share price compared to its estimated value.

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.

Companies discussed in this article include NasdaqGS:CHKP.

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