Check Point Software Reports 2026 First Quarter Financial Results
Rhea-AI Summary
Check Point (NASDAQ: CHKP) reported Q1 2026 results: total revenue $668M (+5% YoY) and security subscriptions $323M (+11% YoY). GAAP operating income was $185M (28% of revenue) and GAAP EPS was $1.81 (+5% YoY); non-GAAP EPS was $2.50 (+13% YoY).
Cash from operations was $445M, adjusted free cash flow $457M, RPO $2.6B, cash and equivalents $4.38B. Company completed two acquisitions (~$92M) and named Sherif Seddik CRO effective May 1, 2026.
Positive
- Security subscriptions revenue +11% YoY to $323M
- Non-GAAP EPS +13% YoY to $2.50
- Adjusted free cash flow +11% YoY to $457M
- Cash balances increased to $4.38B (Mar 31, 2026)
- Completed acquisitions of Cyata and Cyclops for ~$92M
Negative
- Product revenue hit by go-to-market changes causing near-term headwinds in appliances
- $2.0B convertible notes offering generated ~$1.8B proceeds, a material capital action
Key Figures
Market Reality Check
Peers on Argus
CHKP’s pre-news move of +0.48% contrasts with momentum data showing only one peer (GEN) in the scanner, moving -3.75%. Other software infrastructure peers show modest gains, suggesting today’s setup is more stock-specific around earnings than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 28 | Quarterly earnings | Positive | +6.2% | Q3 2025 revenue and EPS growth aided by tax benefit and acquisition. |
| Jul 30 | Quarterly earnings | Positive | -14.5% | Strong Q2 2025 revenue and EPS growth with robust subscriptions and cash. |
| Jul 11 | Platform recognition | Positive | -2.6% | Named Leader in Zero Trust Platforms with top scores in key criteria. |
| Apr 23 | Quarterly earnings | Positive | -3.8% | Q1 2025 revenue, cash flow, and RPO all showed solid year-over-year growth. |
| Oct 29 | Quarterly earnings | Positive | -14.5% | Q3 2024 revenue and subscriptions grew with higher EPS and an acquisition. |
Recent earnings releases have generally shown solid growth metrics but were followed by predominantly negative next-day price reactions.
Over the last several earnings cycles, Check Point reported consistent revenue and EPS growth, often highlighting security subscriptions and emerging technologies. Q3 2025 results on Oct 28, 2025 saw revenue of $678M and a positive +6.18% reaction, but other earnings, including Q2 2025 on Jul 30, 2025 and Q3 2024 on Oct 29, 2024, were followed by declines of -14.5% and -14.47%. Today’s Q1 2026 report, with mid-single-digit revenue growth and stronger EPS expansion, fits the pattern of fundamentally solid, subscription-driven results set against a stock that often trades lower post-earnings.
Historical Comparison
In the past earnings releases, CHKP’s average next-day move was -5.84% despite generally positive results. Today’s Q1 2026 earnings, with revenue and EPS growth, arrive against a history where strong fundamentals often coincided with negative post-earnings price reactions.
Across recent earnings, Check Point has repeatedly delivered year-over-year growth in total revenue, security subscriptions, and EPS, while emphasizing AI-driven security, hybrid mesh architecture, and acquisitions to expand capabilities and support a subscription-centric model.
Market Pulse Summary
This announcement details Q1 2026 results featuring total revenue of $668 million (up 5%) and non-GAAP EPS of $2.50 (up 13%), with security subscriptions growing 11%. Cash flow from operations reached $445 million, and RPO increased to $2.6 billion. Management highlighted go-to-market changes, acquisitions, and AI-driven security offerings. Historically, earnings releases have averaged a -5.84% next-day move, so investors may watch how recurring revenue, cash balances of $4,380 million, and leadership changes shape future sentiment.
Key Terms
non-gaap financial
adjusted free cash flow financial
remaining performance obligation financial
rpo financial
convertible senior notes financial
capped calls financial
sase technical
research and development technical
AI-generated analysis. Not financial advice.
First Quarter 2026 Financial Highlights:
- Total Revenues:
$668 million - Security Subscriptions Revenues:
$323 million - GAAP Operating Income:
$185 million - Non-GAAP Operating Income:
$265 million - GAAP EPS:
$1.81 - Non-GAAP EPS:
$2.50
"In the first quarter, we delivered double-digit growth in non-GAAP earnings per share and adjusted free cash flow, along with 5 percent revenue growth. Subscription revenue remained a key strength, supported by strong demand across our emerging technologies, including email security, exposure management, and SASE. Product revenue was impacted by go-to-market changes implemented at the beginning of the quarter, which created near-term headwinds in our security appliance business. We remain confident these go-to-market changes together with our market-leading technology will drive sustainable long-term value," said Nadav Zafrir, Chief Executive Officer. "The cybersecurity landscape is undergoing a fundamental shift as AI accelerates both the scale and sophistication of threats. Our strategy is purpose-built for this environment. With our four-pillar architecture, we are well positioned to benefit from accelerating demand for secure, enterprise-grade AI transformation at scale."
New Officer Appointment
Check Point today announced a change in its commercial leadership team. Sherif Seddik has been appointed Chief Revenue Officer, effective May 1, 2026. Mr. Seddik has served as the Company's President of International Sales since 2023 and brings more than three decades of global sales leadership experience. He will succeed Itai Greenberg, who is stepping down from his role as Chief Revenue Officer.
Financial Highlights Commentary
- Cash Flow from Operations:
$445 million , a 6 percent increase year over year. - Adjusted Free Cash Flow*:
$457 million - Remaining Performance Obligation (RPO)**:
$2.6 billion - Cash Balances, Marketable Securities & Short-Term Deposits:
$4,380 million $2,932 million $1.8 billion $2 billion $92 million - Share Repurchase Program: During the first quarter of 2026, the company repurchased approximately 1.9 million shares for a total of approximately
$325 million - R&D Grants: A new Israeli law enacted on March 31, 2026, as part of the 2026 budget, provides tax incentives for research and development activities carried out in
Israel . Eligible Israeli companies within multinational groups can receive tax credits for qualifying R&D expenses, which may be used to offset corporate taxes or minimum top-up tax, and unused credits may be converted into cash grants after a defined period.
For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see "Use of Non-GAAP Financial Information" and "Reconciliation of GAAP to Non-GAAP Financial Information."
* Adjusted Free Cash Flow is a measure that we define as Cash provided by operating activities, less purchases of property, equipment, and other assets, net of Acquisition related costs.
** Remaining Performance Obligation (RPO) is a measure that represents the total value of non-cancellable contracted products and/or services that are yet to be recognized as Revenue as of March 31, 2026.
Conference Call & Video Cast Information
Check Point will host a conference call with the investment community on April 30, 2026, at 8:30 AM ET/5:30 AM PT. To listen to the live, videocast or replay, please visit the website www.checkpoint.com/ir.
Second Quarter 2026 Investor Conference Participation Schedule
- Needham 21st Annual TMT Conference
May 14, 2026, NY, NY – Virtual 1x1's - J.P. Morgan 54th Annual TMT Conference
May 18-20, 2026,Boston, MA – Fireside Chat & 1x1's - Jefferies 2026 Software, Internet & AI Conference
May 27, 2026,Newport Coast, CA – Fireside Chat &1x1's - TD Cowen 54th Annual TMT Conference
May 28, 2026, NY, NY – Fireside Chat & 1x1's - Baird 2026 Global Consumer, Technology & Services Conference
June 2, 2026, NY, NY – Fireside Chat & 1x1's - 2026 Evercore Global TMT Conference
June 3, 2026, SF, CA – 1x1's - Bank of America Global Technology Conference 2026
June 4, 2026, SF, CA – 1x1's - Mizuho Technology Conference 2026
June 9, 2026, NY, NY – 1x1's - FBN 30th Virtual Conference
June 15, 2026, NY, NY – Virtual
Members of Check Point's management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Check Point's conference presentations are expected to be available via webcast on the company's web site. To hear these presentations and access the most updated information please visit the company's web site at www.checkpoint.com/ir. The schedule is subject to change.
Follow Check Point via:
Twitter: http://www.twitter.com/checkpointsw
Facebook: https://www.facebook.com/checkpointsoftware
Blog: http://blog.checkpoint.com
YouTube: http://www.youtube.com/user/CPGlobal
LinkedIn: https://www.linkedin.com/company/check-point-software-technologies
About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (http://www.checkpoint.com) is a leading AI-powered, cloud-delivered cyber security platform provider protecting over 100,000 organizations worldwide. Check Point leverages the power of AI everywhere to enhance cyber security efficiency and accuracy through its Infinity Platform, with industry-leading catch rates enabling proactive threat anticipation and smarter, faster response times. The comprehensive platform includes cloud-delivered technologies consisting of Check Point Harmony to secure the workspace, Check Point CloudGuard to secure the cloud, Check Point Quantum to secure the network, and Check Point Infinity Core Services for collaborative security operations and services.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, expectations regarding our products and solutions, expectations regarding the cybersecurity landscape, AI adoption and the increasing demand for our products and solutions, new officer appointments and our participation in investor conferences and other events during the second quarter of 2026. Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the market for IT security continuing to develop; issues in the development and deployment of AI; competition from other products and services; appointments and departures of our executive officers; and general market, political, economic, and business conditions, including acts of terrorism or war. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 31, 2026. The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income, earnings per diluted share and adjusted free cash flow, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses, amortization of debt discount and issuance costs and the related tax affects. Check Point's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Check Point's ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures to assist the investment community to see the company "through the eyes of management," and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.
CHECK POINT SOFTWARE TECHNOLOGIES LTD. (Unaudited, in millions, except per share amounts)
| ||||
Three Months Ended | ||||
March 31, | ||||
2026 | 2025 | |||
Revenues: | ||||
Products and licenses | $ 110.8 | $ 114.1 | ||
Security subscriptions | 323.2 | 290.6 | ||
Total revenues from products and security subscriptions | 434.0 | 404.7 | ||
Software updates and maintenance | 234.4 | 233.1 | ||
Total revenues | 668.4 | 637.8 | ||
Operating expenses: | ||||
Cost of products and licenses | 27.4 | 23.0 | ||
Cost of security subscriptions | 23.9 | 21.4 | ||
Total cost of products and security subscriptions | 51.3 | 44.4 | ||
Cost of Software updates and Maintenance | 35.9 | 32.1 | ||
Amortization of technology | 10.5 | 7.6 | ||
Total cost of revenues | 97.7 | 84.1 | ||
Research and development, net (*) | 109.9 | 102.1 | ||
Selling and marketing | 242.6 | 225.4 | ||
General and administrative | 33.1 | 30.7 | ||
Total operating expenses | 483.3 | 442.3 | ||
Operating income | 185.1 | 195.5 | ||
Financial income, net | 40.8 | 27.3 | ||
Income before taxes on income | 225.9 | 222.8 | ||
Taxes on income | 34.3 | 31.9 | ||
Net income | $ 191.6 | $ 190.9 | ||
Basic earnings per share | $ 1.83 | $ 1.77 | ||
Number of shares used in computing basic earnings per share | 104.7 | 107.9 | ||
Diluted earnings per share | $ 1.81 | $ 1.71 | ||
Number of shares used in computing diluted earnings per share | 106.1 | 111.4 | ||
(*) Q1-26 includes |
CHECK POINT SOFTWARE TECHNOLOGIES LTD. (Unaudited, in millions, except per share amounts)
| |||||
Three Months Ended | |||||
March 31, | |||||
2026 | 2025 | ||||
Revenues | $ 668.4 | $ 637.8 | |||
Non-GAAP operating income | 264.6 | 258.6 | |||
Non-GAAP net income | 265.3 | 246.2 | |||
Non-GAAP diluted earnings per share | $ 2.50 | $ 2.21 | |||
Number of shares used in computing diluted Non-GAAP earnings per share | 106.1 | 111.4 | |||
CHECK POINT SOFTWARE TECHNOLOGIES LTD. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited, in millions, except per share amounts)
| |||||
Three Months Ended | |||||
March 31, | |||||
2026 | 2025 | ||||
GAAP operating income | $ 185.1 | $ 195.5 | |||
Stock-based compensation (1) | 59.8 | 41.2 | |||
Amortization of intangible assets and acquisition related expenses (2) (*) | 19.7 | 21.9 | |||
Non-GAAP operating income | $ 264.6 | $ 258.6 | |||
GAAP net income | $ 191.6 | $ 190.9 | |||
Stock-based compensation (1) | 59.8 | 41.2 | |||
Amortization of intangible assets and acquisition related expenses (2) (*) | 19.7 | 21.9 | |||
Amortization of debt discount (3) | 1.4 | - | |||
Taxes on the above items (4) | (7.2) | (7.8) | |||
Non-GAAP net income | $ 265.3 | $ 246.2 | |||
GAAP diluted earnings per share | $ 1.81 | $ 1.71 | |||
Stock-based compensation (1) | 0.56 | 0.37 | |||
Amortization of intangible assets and acquisition related expenses (2) (*) | 0.18 | 0.20 | |||
Amortization of debt discount (3) | 0.01 | - | |||
Taxes on the above items (4) | (0.06) | (0.07) | |||
Non-GAAP diluted earnings per share | $ 2.50 | $ 2.21 | |||
Number of shares used in computing diluted Non-GAAP earnings per share | 106.1 | 111.4 | |||
(1) Stock-based compensation: | |||||
Cost of products and licenses | $ 0.1 | $ 0.1 | |||
Cost of software updates and maintenance | 4.0 | 2.1 | |||
Research and development | 23.5 | 14.7 | |||
Selling and marketing | 22.2 | 14.6 | |||
General and administrative | 10.0 | 9.7 | |||
59.8 | 41.2 | ||||
(2) Amortization of intangible assets and acquisition related expenses (*): | |||||
Amortization of technology-cost of revenues | 10.5 | 7.6 | |||
Research and development | 5.8 | 1.5 | |||
Selling and marketing | 3.4 | 12.8 | |||
19.7 | 21.9 | ||||
(3) Amortization of debt discount | 1.4 | - | |||
(4) Taxes on the above items | (7.2) | (7.8) | |||
Total, net | $ 73.7 | $ 55.3 | |||
(*) While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired companies is reflected in the measures, and the acquired assets contribute to revenue generation. |
CHECK POINT SOFTWARE TECHNOLOGIES LTD. RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (Unaudited, in millions)
| ||||
Three Months Ended | ||||
March 31, | ||||
2026 | 2025 | |||
Net cash provided by operating activities | $ 445.3 | $ 421.1 | ||
Less: Purchases of property and equipment | (9.4) | (7.4) | ||
Free cash flow | $ 435.9 | $ 413.7 | ||
Add: Acquisition-related costs | 21.4 | - | ||
Adjusted free cash flow | $ 457.3 | $ 413.7 | ||
Free cash flow margin | 65 % | 65 % | ||
Adjusted free cash flow margin | 68 % | 65 % | ||
CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED BALANCE SHEET DATA (In millions) ASSETS | |||||
March 31, | December 31, | ||||
2026 (Unaudited) | 2025 (Audited) | ||||
Current assets: | |||||
Cash and cash equivalents | $ 1,072.5 | $ 1,800.0 | |||
Marketable securities and short-term deposits | 1,696.3 | 1,214.9 | |||
Trade receivables, net | 410.1 | 769.1 | |||
Prepaid expenses and other current assets | 178.4 | 180.0 | |||
Total current assets | 3,357.3 | 3,964.0 | |||
Long-term assets: | |||||
Marketable securities | 1,610.9 | 1,326.8 | |||
Property and equipment, net | 85.8 | 82.9 | |||
Deferred tax asset, net | 73.1 | 68.3 | |||
Operating lease right of use assets | 205.6 | 48.4 | |||
Goodwill and other intangible assets, net | 2,204.4 | 2,118.5 | |||
Lease prepayment | - | 159.9 | |||
Other assets | 75.4 | 37.6 | |||
Total long-term assets | 4,255.2 | 3,842.4 | |||
Total assets | $ 7,612.5 | $ 7,806.4 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Deferred revenues | $ 1,429.7 | $ 1,530.1 | ||||
Trade payables and other accrued liabilities | 382.4 | 406.6 | ||||
Total current liabilities | 1,812.1 | 1,936.7 | ||||
Long-term liabilities: | ||||||
Convertible senior notes, net | 1,973.5 | 1,972.1 | ||||
Long-term deferred revenues | 629.8 | 650.3 | ||||
Income tax accrual | 350.1 | 329.7 | ||||
Other long-term liabilities | 32.7 | 35.5 | ||||
Total long-term liabilities | 2,986.1 | 2,987.6 | ||||
Total liabilities | 4,798.2 | 4,924.3 | ||||
Shareholders' equity: | ||||||
Share capital | 0.8 | 0.8 | ||||
Additional paid-in capital | 3,411.4 | 3,331.6 | ||||
Treasury shares at cost | (15,867.3) | (15,555.8) | ||||
Accumulated other comprehensive income | 7.1 | 34.8 | ||||
Retained earnings | 15,262.3 | 15,070.7 | ||||
Total shareholders' equity | 2,814.3 | 2,882.1 | ||||
Total liabilities and shareholders' equity | $ 7,612.5 | $ 7,806.4 | ||||
Total cash and cash equivalents, marketable | $ 4,379.7 | $ 4,341.7 | ||||
CHECK POINT SOFTWARE TECHNOLOGIES LTD. SELECTED CONSOLIDATED CASH FLOW DATA (Unaudited, in millions)
| ||||
Three Months Ended | ||||
March 31, | ||||
2026 | 2025 | |||
Cash flow from operating activities: | ||||
Net income | $ 191.6 | $ 190.9 | ||
Adjustments to reconcile net income to net cash provided by | ||||
Depreciation of property and equipment | 6.6 | 5.2 | ||
Amortization of intangible assets | 12.9 | 19.2 | ||
Stock-based compensation | 59.8 | 41.2 | ||
Realized loss (gain) on marketable securities | (0.1) | 0.1 | ||
Decrease in trade and other receivables, net | 300.2 | 329.4 | ||
Decrease in deferred revenues, trade payables and other | (127.9) | (142.1) | ||
Amortization of debt discount | 1.4 | - | ||
Deferred income taxes, net | 0.8 | (22.8) | ||
Net cash provided by operating activities | 445.3 | 421.1 | ||
Cash flow from investing activities: | ||||
Payment in conjunction with acquisitions, net of acquired cash | (92.2) | - | ||
Investment in property and equipment | (9.4) | (7.4) | ||
Net cash used in investing activities | (101.6) | (7.4) | ||
Cash flow from financing activities: | ||||
Proceeds from issuance of shares upon exercise of options | 34.4 | 46.0 | ||
Purchase of treasury shares | (325.0) | (325.0) | ||
Payments related to shares withheld for taxes | (0.9) | (1.5) | ||
Net cash used in financing activities | (291.5) | (280.5) | ||
Unrealized gain (loss) on marketable securities, net | (14.2) | 15.0 | ||
Increase in cash and cash equivalents, marketable securities, | 38.0 | 148.2 | ||
Cash and cash equivalents, marketable securities, and | 4,341.7 | 2,783.8 | ||
Cash and cash equivalents, marketable securities, and | $ 4,379.7 | $ 2,932.0 | ||
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SOURCE Check Point Software Technologies