Check Point Sees AI Security Spending Surge as 2027 Growth Setup Takes Shape

Check Point Sees AI Security Spending Surge as 2027 Growth Setup Takes Shape

AI cybersecurity spending could accelerate in 2027 as customers shift from experimental AI budgets to dedicated funding.

Check Point expects rising AI-driven network traffic and demand for protections such as its AI Network Firewall.

Check Point’s go-to-market transition disrupted second-quarter execution, but management expects improvement in the second half.

The company views the third quarter as a trough and says its fourth-quarter pipeline is particularly strong, while planning to add roughly 150 net employees by year-end.

The company is expanding its platform strategy through products such as CTEM, SASE and AI security offerings, while keeping larger acquisitions under consideration.

Management said M&A is not required to achieve double-digit growth but could accelerate progress.

Check Point Software Technologies NASDAQ: CHKP sees 2027 as a potentially significant year for artificial intelligence-related cybersecurity spending as customers move from experimentation toward more deliberate budgeting, according to Global Head of Investor Relations Kip Meintzer.

Speaking at an investor event, Meintzer said organizations had redirected spending from other budget areas to fund AI initiatives during the current year.

However, as companies prepare annual operating plans for next year, he expects more dedicated AI spending, including investments in AI security.

“Without security, you’re in a little heap of trouble,” Meintzer said, adding that companies and AI model developers have increasingly recognized the risks associated with deploying AI without adequate protections.

Meintzer said Check Point’s second-quarter execution during its go-to-market transition “could’ve been better,” though he said the company now has a better handle on the third and fourth quarters.

He pointed to the company’s guidance and pipeline indicators as evidence that conditions are moving in the right direction.

The go-to-market changes are designed to focus more resources on larger customers and new-logo opportunities.

Existing large accounts are receiving more dedicated account-manager coverage, while sales “hunters” pursuing new logos are being given multiyear contracts rather than being measured solely on a one-year timetable.

Meintzer said the longer sales time frame is intended to allow representatives to build relationships and pursue larger enterprise opportunities without being rushed.

He said the organizational changes, including new sales overlays, staffing adjustments and continued hiring, contributed to disruption during the transition.

Check Point has said it expects to hire an additional 300 employees by year-end, representing a net increase of about 150 employees after other workforce changes.

Meintzer said the company expects to enter 2027 “on the ground and running.”

For the third quarter, Meintzer said Check Point views the period as a trough largely because of difficult comparisons, particularly around billings.

He said the company has informed investors that a couple of large third-quarter deals could be pushed out.

Still, he described the fourth-quarter pipeline as looking like “a complete home run,” supported by sales teams that have now spent roughly two quarters working with their assigned accounts.

Meintzer said broader AI adoption should drive higher network traffic and increase the need for security.

He highlighted Check Point’s AI Network Firewall, w...