Check Point Software Technologies (NASDAQ:CHKP) Posts Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Check Point Software Technologies (NASDAQ:CHKP) issued its earnings results on Thursday. The technology company reported $2.55 EPS for the quarter, beating the consensus estimate of $2.45 by $0.10, FiscalAI reports. Check Point Software Technologies had a net margin of 38.37% and a return on equity of 38.79%. During the same period in the previous year, the firm posted $2.37 earnings per share. The firm’s quarterly revenue was up 1.3% compared to the same quarter last year. Check Point Software Technologies updated its Q3 2026 guidance to 2.430-2.530 EPS and its FY 2026 guidance to 10.050-10.850 EPS.

Here are the key takeaways from Check Point Software Technologies’ conference call:

• Q2 revenue rose 1% to $674 million, in line with expectations, while non-GAAP EPS increased 8% year over year to $2.55. Deferred revenue and remaining performance obligations each grew 7%, indicating continued strength in contracted business.
• Product revenue declined 14% amid lower firewall-appliance demand and disruption from the go-to-market reorganization. Management expects a similar trend in Q3, making the second half significantly back-end loaded.
• Subscription revenue grew 12%, with email security, CTEM, and AI security collectively generating more than 40% year-over-year ARR growth. Management expects firewall product revenue to return to growth in Q4 and maintained its full-year 2026 guidance.
• Check Point launched an AI Network Firewall as part of its AI Defense Plane, aimed at securing prompts, agent actions, and model interactions across networks, cloud, and SASE. Executives view accelerating AI adoption and increasingly sophisticated attacks as a long-term demand opportunity.
• The company plans to hire approximately 300 additional go-to-market employees globally, but said the investment is not expected to materially benefit results until Q1–Q2 2027. Check Point ended the quarter with $4.2 billion in cash and marketable securities and expanded its share-repurchase authorization by $2 billion.

Check Point Software Technologies Price Performance

Shares of Check Point Software Technologies stock traded down $11.44 during midday trading on Thursday, hitting $128.23. 2,575,073 shares of the company traded hands, compared to its average volume of 1,434,089. The firm’s fifty day moving average price is $131.31 and its 200-day moving average price is $145.81. The stock has a market cap of $13.09 billion, a price-to-earnings ratio of 13.17, a PEG ratio of 4.07 and a beta of 0.49. Check Point Software Technologies has a 12 month low of $112.23 and a 12 month high of $210.66. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.85 and a current ratio of 1.85.

Insider Buying and Selling

In other Check Point Software Technologies news, Director Yoav Chelouche sold 25,000 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $140.28, for a total value of $3,507,000.00. Following the sale, the director owned 4,008 shares in the company, valued at $562,242.24. This trade represents a 86.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 29.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Check Point Software Technologies

Large investors have recently bought and sold shares of the company. Measured Wealth Private Client Group LLC acquired a new position in Check Point Software Technologies during the 3rd quarter worth about $27,000. Ossiam raised its position in shares of Check Point Software Technologies by 139.1% during the third quarter. Ossiam now owns 165 shares of the technology company’s stock worth $34,000 after acquiring an additional 96 shares during the last quarter. Sunbelt Securities Inc. acquired a new position in shares of Check Point Software Technologies in the third quarter worth approximately $38,000. Horizon Investments LLC lifted its stake in shares of Check Point Software Technologies by 28.9% in the third quarter. Horizon Investments LLC now owns 241 shares of the technology company’s stock worth $50,000 after acquiring an additional 54 shares during the period. Finally, GW&K Investment Management LLC boosted its holdings in Check Point Software Technologies by 67.9% in the fourth quarter. GW&K Investment Management LLC now owns 282 shares of the technology company’s stock valued at $52,000 after acquiring an additional 114 shares during the last quarter. 98.51% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on CHKP. BMO Capital Markets decreased their price objective on shares of Check Point Software Technologies from $210.00 to $135.00 and set an “outperform” rating on the stock in a research note on Monday, May 4th. Jefferies Financial Group restated a “buy” rating and set a $160.00 target price on shares of Check Point Software Technologies in a research note on Friday, May 1st. Compass Point set a $135.00 target price on Check Point Software Technologies in a report on Monday. Cantor Fitzgerald reiterated a “neutral” rating and issued a $150.00 price target on shares of Check Point Software Technologies in a research note on Thursday, July 23rd. Finally, JPMorgan Chase & Co. cut Check Point Software Technologies from an “overweight” rating to a “neutral” rating and set a $135.00 price target for the company. in a report on Monday. Nine equities research analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Check Point Software Technologies has an average rating of “Hold” and a consensus price target of $151.81.

Check Point Software Technologies News Summary

Here are the key news stories impacting Check Point Software Technologies this week:

• Positive Sentiment: Second-quarter earnings beat estimates: Check Point reported adjusted EPS of $2.55, above the $2.45 consensus and up from $2.37 a year earlier. Revenue increased 1.3% year over year, while the company maintained strong profitability, including a 38.37% net margin. Check Point Software Q2 Earnings Surpass Estimates
• Positive Sentiment: AI firewall launch supports the growth narrative: The company introduced an AI Network Firewall designed to give organizations visibility and control over employee, application and agent use of artificial intelligence without requiring new infrastructure. The product could strengthen Check Point’s competitive position in AI security, although its near-term financial impact is uncertain. Check Point Announces AI Network Firewall
• Neutral Sentiment: Full-year outlook is close to expectations: FY 2026 EPS guidance of $10.05–$10.85 brackets the $10.03 consensus, while revenue guidance of $2.8–$2.9 billion is broadly in line with estimates. This limits the benefit of the quarterly earnings beat but indicates management continues to expect profitable growth. Check Point Reports Second-Quarter 2026 Results
• Negative Sentiment: Third-quarter revenue guidance disappointed: Check Point forecast Q3 revenue of $655 million–$685 million, below the $696.5 million analyst consensus. The EPS range of $2.43–$2.53 is centered near expectations, making the revenue shortfall the primary reason investors are reacting negatively. Check Point Q2 Key Metrics Compared With Estimates

About Check Point Software Technologies

Check Point Software Technologies Ltd. is an Israeli-founded cybersecurity company that develops, markets and supports a broad portfolio of network, cloud and endpoint security products. Founded in 1993, the company was an early pioneer of stateful inspection firewall technology and later developed a modular “software blade” approach that allowed customers to combine protection capabilities. Check Point’s product set spans physical and virtual security appliances, software and cloud-native services designed to prevent cyberattacks, protect data and simplify security management for enterprises and service providers.

Key product families include Quantum Security Gateways (on-premises and hybrid appliances), CloudGuard (cloud security posture and workload protection), Harmony (endpoint, remote access and unified endpoint security), and SandBlast (advanced threat prevention and sandboxing).