Check Point Software Reports 2026 Third Quarter Financial Results

Subscription growth and higher quarterly operating cash flow accompanied lower revenue and operating income.

Rhea-AI Summary

Check Point Software Technologies (NASDAQ: CHKP) reported third-quarter 2026 revenue of $669.8 million, down 1 percent year over year. Security subscriptions rose 11 percent to $338.6 million. GAAP operating income fell to $177.2 million from $199.1 million, with a 26 percent margin. GAAP diluted earnings per share fell 45 percent to $1.82; excluding the prior-year one-time tax benefit, they increased 1 percent.

Operating cash flow rose to $264.3 million from $240.6 million. Remaining performance obligations—contracted revenue not yet recognized—grew 5 percent to $2.5 billion. Cash, marketable securities and short-term deposits totaled $4,123 million, supported by convertible-note proceeds. Quarterly repurchases totaled approximately $325 million, and research expenses included a $25 million incentive reduction. The company expects gradual revenue improvement beginning in the fourth quarter, but said recovery is taking longer than anticipated.

13 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 22 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointConvertible senior notes generated $1.8 billion after issuance costs and purchased capped calls. 12% of market cap
• Moderate pointQ3 security subscriptions revenue grew 11 percent year over year to $338.6 million.
• Moderate pointRemaining performance obligations increased 5 percent year over year to $2.5 billion.
• Moderate pointQ3 operating cash flow rose to $264.3 million from $240.6 million a year earlier.
• Moderate pointQ3 adjusted free cash flow rose to $257.9 million from $74.8 million, following last year's $159.9 million prepaid lease payment.
• Moderate pointQ3 repurchases returned approximately $325 million through approximately 2.5 million shares. 2.1% of market cap
• Moderate pointResearch expense reductions from expected Israeli grants totaled $25 million in Q3 and $80 million over nine months.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Check Point expects gradual revenue improvement beginning in the fourth quarter.
• Moderate pointNine-month revenue increased to $2,011.8 million from $1,980.5 million a year earlier.
• Moderate pointNine-month adjusted free cash flow increased to $875.9 million from $750.7 million a year earlier.

3 minor points

• Minor pointCash, securities and short-term deposits reached $4,123 million, versus $2,817 million at September 30, 2025.
• Minor pointQ3 selling and marketing expense declined to $233.4 million from $238.0 million a year earlier.
• Minor pointQ3 net financial income increased to $41.5 million from $28.7 million a year earlier.

Negative

• Major pointConvertible senior notes offering added a $2 billion debt obligation. 13% of market cap
• Moderate pointQ3 revenue declined 1 percent year over year to $669.8 million.
• Moderate pointQ3 GAAP diluted EPS fell 45 percent to $1.82; excluding last year's tax benefit, EPS increased 1 percent.
• Moderate pointQ3 non-GAAP diluted EPS fell 37 percent to $2.49; excluding last year's tax benefit, EPS increased 1 percent.
• Moderate pointQ3 GAAP operating income fell to $177.2 million from $199.1 million; margin was 26 percent.
• Moderate pointQ3 non-GAAP operating income fell to $250.7 million from $281.9 million; margin was 37 percent.
• Moderate pointQ3 GAAP net income declined to $185.2 million from $358.7 million a year earlier.
• Moderate pointQ3 non-GAAP net income declined to $253.8 million from $431.4 million a year earlier.
• Moderate pointQ3 products and licenses revenue fell to $105.5 million from $130.4 million a year earlier.
• Moderate pointQ3 software updates, maintenance and services revenue fell to $225.7 million from $241.7 million.
• Moderate pointRevenue recovery is taking longer than anticipated, in the company's assessment.
• Moderate pointQ3 cost of revenues increased to $98.1 million from $88.5 million a year earlier.
• Moderate pointNine-month GAAP operating income declined to $547.4 million from $598.2 million a year earlier.
• Moderate pointNine-month GAAP net income declined to $570.6 million from $752.4 million a year earlier.
• Moderate pointNine-month GAAP diluted EPS declined to $5.50 from $6.81 a year earlier.
• Moderate pointNine-month non-GAAP operating income declined to $775.0 million from $811.6 million a year earlier.
• Moderate pointNine-month non-GAAP net income declined to $782.6 million from $939.0 million a year earlier.
• Moderate pointNine-month non-GAAP diluted EPS declined to $7.54 from $8.50 a year earlier.
• Moderate pointNine-month operating cash flow declined to $881.0 million from $923.8 million a year earlier.

3 minor points

• Minor pointQ3 currency hedging produced a $10 million expense, versus a $3 million benefit a year earlier.
• Minor pointQ3 net research and development expense increased to $122.1 million from $117.5 million a year earlier.
• Minor pointQ3 general and administrative expense increased to $39.0 million from $34.4 million a year earlier.

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On Nov 2, the day this news came out, the latest delayed price for CHKP is 6.31% below the previous close. Argus tracked a trough of -5.9% from its starting point during tracking. Our momentum scanner has recorded 4 alerts for this stock so far that day. The latest delayed price is $142.51. Relative volume is exceptionally heavy at 29.0x what this stock usually trades by this time of day.

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Key Figures

Total revenue: $669.8 million; down 1% year over year Security subscriptions revenue: $338.6 million; up 11% year over year Remaining performance obligation: $2.5 billion; up 5% year over year +5 more

Total revenue

$669.8 million; down 1% year over year

Third quarter 2026

Security subscriptions revenue

$338.6 million; up 11% year over year

Third quarter 2026

Remaining performance obligation

$2.5 billion; up 5% year over year

As of September 30, 2026

GAAP EPS

$1.82; down 45% year over year

Third quarter 2026

Non-GAAP EPS

$2.49; down 37% year over year

Third quarter 2026

EPS growth excluding prior-year tax benefit

Up 1% year over year

GAAP and non-GAAP EPS

Cash, marketable securities and short-term deposits

$4,123 million

As of September 30, 2026

Convertible senior notes offering

$2 billion offering; $1.8 billion proceeds

Proceeds net of issuance costs and purchased capped calls

Previous Earnings Reports

3 past events · Latest: Jul 30

Same Type 3 events

1. Jul 30

   Q2 2026 earnings

   24h Move

   -8.2%

   Security subscriptions rose 12% and non-GAAP EPS increased 8% year over year.

2. Apr 30

   Q1 2026 earnings

   24h Move

   -19.6%

   Revenue rose 5% and non-GAAP EPS increased 13% year over year.

3. Oct 28

   Q3 2025 earnings

   24h Move

   +6.2%

   Prior-year GAAP and non-GAAP EPS included an approximately $1.47 tax benefit.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

remaining performance obligation, convertible senior notes, capped calls, adjusted free cash flow

4 terms

remaining performance obligation financial

"Remaining Performance Obligation (RPO)"

Remaining performance obligation is the amount of work or services a company still needs to deliver to a customer under a contract. It matters because it shows how much revenue the company can expect to earn in the future from that contract, helping investors understand the company's ongoing business and growth potential.

convertible senior notes financial

"$1.8 billion proceeds from our $2 billion convertible senior notes offering"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

capped calls financial

"net of purchased capped calls"

A capped call is a type of option tied to a company’s convertible securities that gives the holder the right to buy shares up to a set price, but with a fixed ceiling on the payout. Companies commonly use capped calls to reduce the number of new shares that would dilute existing shareholders if convertibles turn into stock; for investors this matters because capped calls can limit dilution, affect share supply, and alter the potential upside and risk of owning the stock.

adjusted free cash flow financial

"Adjusted Free Cash Flow is a non-GAAP financial measure"

Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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TEL AVIV, Israel, Nov. 2, 2026 /PRNewswire/ -- Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the quarter ended September 30^th, 2026.

Third Quarter 2026 Financial Highlights:

• Total Revenues: $670 million, a 1 percent decrease year over year
• Security Subscriptions Revenues: $339 million, an 11 percent increase year over year
• Remaining Performance Obligation (RPO)*: $2.5 billion, a 5 percent increase year over year.
• GAAP Operating Income: $177 million, representing 26 percent of total revenues
• Non-GAAP Operating Income: $251 million, representing 37 percent of total revenues
• GAAP EPS: $1.82, a 45 percent decrease year over year. Excluding the one-time tax benefit recognized in the same quarter last year, GAAP EPS increased 1 percent year over year.
• Non-GAAP EPS: $2.49, a 37 percent decrease year over year. Excluding the one-time tax benefit recognized in the same quarter last year, Non-GAAP EPS increased 1 percent year over year.
• Cash Flow from Operations: $264 million, representing 39 percent of total revenues
• Adjusted Free Cash Flow**: $258 million, representing 38 percent of total revenues

"Third-quarter results were in line with our expectations. Security subscriptions revenue grew 11 percent year over year, supported by strong demand for Email, CTEM, and AI Security," said Nadav Zafrir, CEO of Check Point Software. "We believe revenues reached a trough in the third quarter, and we expect gradual improvement beginning in the fourth quarter. The recovery is taking longer than anticipated, but we remain confident in our vision. Our leading indicators are improving, which is encouraging, and we remain focused on driving sustainable growth."

Financial Highlights Commentary 

EPS: Earnings per diluted share in the third quarter of 2026 were $2.49 and $1.82 for Non-GAAP and GAAP, respectively. This compares to $3.94 and $3.28 in the third quarter of 2025. In connection with a tax settlement signed during the third quarter of 2025, the company updated its tax provisions during that quarter, which resulted in a benefit of approximately $1.47 to Non-GAAP and GAAP EPS.

Cash Balances, Marketable Securities & Short-Term Deposits: $4,123 million as of September 30, 2026, compared to $2,817 million as of September 30, 2025. The increase in cash is primarily a result of the $1.8 billion proceeds from our $2 billion convertible senior notes offering, net of issuance costs and net of purchased capped calls. In the third quarter of 2025, the company executed a payment of approximately $160 million for the land of the new Check Point Tel Aviv Campus.

Cash Flow: Cash flow from operations in the third quarter of 2026 was $264 million, which included $10 million in expense related to our currency hedging transactions. This compares to $241 million in the third quarter of 2025, which included $3 million in benefit related to our currency hedging transactions.

Share Repurchase Program: During the third quarter of 2026, the company repurchased approximately 2.5 million shares for a total of approximately $325 million. Over the last twelve months, we have repurchased approximately 9 million shares.

Research & Development Grants: During the third quarter of 2026, the company recognized a $25 million reduction in research and development expenses under Israel's new research & development tax incentive program. The new Israeli law enacted on March 30, 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 research & development 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.

* 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 September 30, 2026.

** Adjusted Free Cash Flow is a non-GAAP financial measure that we define as Net Cash provided by operating activities, less purchases of property, equipment, Capitalization costs, and other assets, net of Acquisition related costs.

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."

Conference Call and Webcast Information:

Check Point will host a conference call with the investment community on November 2, 2026, at 8:30 AM ET/5:30 AM PT. To listen to the live video cast or replay, please visit the website: www.checkpoint.com/ir.

Fourth Quarter Investor Conference Participation Schedule:

• BMO Tech Conference
  November 12, 2026, New York, NY –1x1's
• RBC Global TIMT Conference
  November 17, 2026, New York, NY –1x1's
• Stephens Annual Investor | NASH2026
  November 18-19, 2026, Nashville, TN – Fireside Chat &1x1's
• Needham 7^th Annual Tech Week
  November 20, 2026, Virtual 1x1's
• 2026 UBS Global Technology Conference
  November 30 - December 3, 2026, Scottsdale, AZ – Fireside Chat &1x1's
• NASDAQ 55^th Investor Conference
  December 9, 2026, London, UK – Fireside Chat &1x1's
• FBN 31^st Semi-Annual Virtual Technology Conference
  December 14, 2026, Virtual Fireside Chat

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. (www.checkpoint.com) is a global cyber security leader protecting more than 100,000 organizations worldwide. Its mission is to secure enterprises' AI transformation. With a prevention-first approach and an open ecosystem architecture, Check Point helps organizations block advanced threats, prioritize exposures, and automate security operations across complex digital environments. The unified architecture simplifies protection across hybrid networks, multi-cloud environments, digital workspaces, and AI systems. Structured around four strategic pillars, Hybrid Mesh Network Security, Workspace Security, Exposure Management, and AI Security, Check Point delivers consistent protection and visibility across multivendor environments, enabling organizations to reduce risk, improve efficiency, and accelerate innovation without increasing complexity. 

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 and customer demands, our ability to capture growth opportunities and drive sustainable and steady growth in the future, statements made by our CEO, and our participation in investor conferences and other events during the fourth 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 continues to develop; competition from other products and services; 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 and 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 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. CONSOLIDATED STATEMENT OF INCOME (Unaudited, in millions, except per share amounts)
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
Revenues:
Products and licenses	$        105.5		$        130.4		$       329.7		$       376.4
Security subscriptions	338.6		305.4		994.4		893.9
Total revenues from products and security subscriptions	444.1		435.8		1,324.1		1,270.3
Software updates, maintenance and services	225.7		241.7		687.7		710.2
Total revenues	669.8		677.5		2,011.8		1,980.5
Operating expenses:
Cost of products and licenses	25.1		24.6		80.3		73.8
Cost of security subscriptions	25.5		22.7		73.8		67.1
Total cost of products and security subscriptions	50.6		47.3		154.1		140.9
Cost of Software updates and    Maintenance	37.1		32.9		109.9		99.2
Amortization of technology	10.4		8.3		31.3		23.7
Total cost of revenues	98.1		88.5		295.3		263.8
Research and development, net (*)	122.1		117.5		344.0		332.4
Selling and marketing	233.4		238.0		715.0		691.2
General and administrative	39.0		34.4		110.1		94.9
Total operating expenses	492.6		478.4		1,464.4		1,382.3
Operating income	177.2		199.1		547.4		598.2
Financial income, net	41.5		28.7		123.8		84.5
Income before taxes on income	218.7		227.8		671.2		682.7
Taxes on income (tax benefit)	33.5		(130.9)		100.6		(69.7)
Net income	$        185.2		$        358.7		$       570.6		$       752.4
Basic earnings per share	$          1.83		$          3.34		$         5.54		$         7.00
Number of shares used in computing basic earnings per share	101.4		107.4		103.0		107.5
Diluted earnings per share	$          1.82		$          3.28		$         5.50		$         6.81
Number of shares used in computing diluted earnings per share	101.9		109.5		103.8		110.4

(*) R&D expenses for the nine and three months ended September 30, 2026 include reductions of $80 million and $25 million respectively, related to grants expected to be received under the Israeli Law for Encouragement and Incentivization of Research and Development, following the ratification of the law during the period.

 

CHECK POINT SOFTWARE TECHNOLOGIES LTD. SELECTED FINANCIAL METRICS (Unaudited, in millions, except per share amounts)
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2026		2025		2026		2025
Revenues		$                 669.8		$                 677.5		$              2,011.8		$              1,980.5
Non-GAAP operating income		250.7		281.9		775.0		811.6
Non-GAAP net income		253.8		431.4		782.6		939.0
Diluted Non-GAAP Earnings per share		$                  2.49		$                   3.94		$                   7.54		$                   8.50
Number of shares used in computing diluted Non-GAAP earnings per share		101.9		109.5		103.8		110.4

 

CHECK POINT SOFTWARE TECHNOLOGIES LTD.  RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited, in millions, except per share amounts)
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2026		2025		2026		2025
GAAP operating income		$                 177.2		$                 199.1		$               547.4		$               598.2
Stock-based compensation (1)		54.8		62.1		170.5		149.2
Amortization of intangible assets and acquisition related expenses (2)(*)		18.7		20.7		57.1		64.2
Non-GAAP operating income		$                 250.7		$                 281.9		$               775.0		$               811.6
GAAP net income		$                 185.2		$                 358.7		$               570.6		$               752.4
Stock-based compensation (1)		54.8		62.1		170.5		149.2
Amortization of intangible assets and acquisition related expenses (2)(*)		18.7		20.7		57.1		64.2
Amortization of debt discount (3)		1.4				4.2
Taxes on the above items (4)		(6.3)		(10.1)		(19.8)		(26.8)
Non-GAAP net income		$                 253.8		$                 431.4		$               782.6		$               939.0
Diluted GAAP Earnings per share		$                   1.82		$                   3.28		$                 5.50		$                 6.81
Stock-based compensation (1)		0.54		0.56		1.64		1.35
Amortization of intangible assets and acquisition related expenses (2)(*)		0.18		0.19		0.55		0.58
Amortization of debt discount (3)		0.01				0.04
Taxes on the above items (4)		(0.06)		(0.09)		(0.19)		(0.24)
Diluted Non-GAAP Earnings per share		$                   2.49		$                   3.94		$                 7.54		$                 8.50
Number of shares used in computing diluted Non-GAAP earnings per share		101.9		109.5		103.8		110.4
(1) Stock-based compensation:
Cost of products and licenses		$                     0.1		$                     0.1		$                   0.3		$                   0.3
Cost of software updates and maintenance		2.8		4.4		10.2		9.7
Research and development		19.9		23.1		63.1		55.7
Selling and marketing		20.1		25.0		63.7		57.1
General and administrative		11.9		9.5		33.2		26.4
		54.8		62.1		170.5		149.2
(2) Amortization of intangible assets and acquisition related expenses (*):
Amortization of technology-cost of revenues		10.4		8.3		31.3		23.7
Research and development		5.1		0.1		16.0		2.7
Selling and marketing		3.2		12.3		9.8		37.8
		18.7		20.7		57.1		64.2
(3) Amortization of debt discount		1.4		-		4.2		-
(4) Taxes on the above items		(6.3)		(10.1)		(19.8)		(26.8)
Total, net		$                   68.6		$                   72.7		$              212.0		$              186.6

(*) 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				Nine Months Ended
		September 30,				September 30,
		2026		2025		2026		2025
Net cash provided by operating activities		$            264.3		$            240.6		$          881.0		$        923.8
Less:
Purchases of property and equipment		(6.4)		(5.9)		(22.9)		(19.4)
Prepaid lease payment		-		(159.9)		-		(159.9)
Capitalization of internal-use software		-		-		(3.6)		-
Free cash flow		$          257.9		$         74.8		$          854.5		$         744.5
Add:
Acquisition-related costs		-		-		21.4		6.2
Adjusted free cash flow		$          257.9		$         74.8		$          875.9		$         750.7
Free cash flow margin		38.5 %		11.0 %		42.5 %		37.6 %
Adjusted free cash flow margin		38.5 %		11.0 %		43.5 %		37.9 %

 

CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED BALANCE SHEET DATA (In millions) ASSETS
			September 30,		December 31,
			2026 (Unaudited)		2025 (Audited)
Current assets:
Cash and cash equivalents			$             496.0		$             1,800.0
Marketable securities and short-term deposits			1,657.9		1,214.9
Trade receivables, net			475.4		769.1
Prepaid expenses and other current assets			160.6		180.0
Total current assets			2,789.9		3,964.0
Long-term assets:
Marketable securities			1,969.0		1,326.8
Property and equipment, net			85.6		82.9
Deferred tax asset, net			75.5		68.3
Operating lease right of use assets			209.0		48.4
Goodwill and other intangible assets, net			2,186.2		2,118.5
Lease prepayment			-		159.9
Other assets			120.0		37.6
Total long-term assets			4,645.3		3,842.4
Total assets			$           7,435.2		$             7,806.4

 

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Deferred revenues			$           1,341.0		$         1,530.1
Trade payables and other accrued liabilities			401.8		406.6
Total current liabilities			1,742.8		1,936.7
Long-term liabilities:
Convertible senior notes, net			1,976.3		1,972.1
Long-term deferred revenues			650.6		650.3
Income tax accrual			391.6		329.7
Other long-term liabilities			35.8		35.5
			3,054.3		2,987.6
Total liabilities			4,797.1		4,924.3
Shareholders' equity:
Share capital			0.8		0.8
Additional paid-in capital			3,520.3		3,331.6
Treasury shares at cost			(16,482.0)		(15,555.8)
Accumulated other comprehensive gain (loss)			(42.3)		34.8
Retained earnings			15,641.3		15,070.7
Total shareholders' equity			2,638.1		2,882.1
Total liabilities and shareholders' equity			$           7,435.2		$         7,806.4
Total cash and cash equivalents, marketable securities and short-term deposits			$           4,122.9		$         4,341.7

 

CHECK POINT SOFTWARE TECHNOLOGIES LTD. SELECTED CONSOLIDATED CASH FLOW DATA (Unaudited, in millions)
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
Cash flow from operating activities:
Net income	$             185.2		$             358.7		$        570.6		$        752.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	6.8		6.3		20.3		17.2
Amortization of intangible assets	12.5		19.1		37.8		57.9
Stock-based compensation	54.8		62.1		170.5		149.2
Realized loss (gain) on marketable securities	*)		*)		(0.1)		0.1
Decrease (increase) in trade and other receivables, net	(17.1)		45.4		205.3		299.8
Increase (decrease) in deferred revenues, trade payables and other accrued liabilities	10.8		(266.3)		(137.1)		(341.7)
Amortization of debt discount	1.4		-		4.2		-
Deferred income taxes, net	9.9		15.3		9.5		(11.1)
Net cash provided by operating activities	264.3		240.6		881.0		923.8
Cash flow from investing activities:
Payment in conjunction with acquisitions, net of acquired cash	-		-		(94.4)		(83.7)
Investment in property and equipment	(6.4)		(5.9)		(22.9)		(19.4)
Investment in prepaid lease payment	-		(159.9)		-		(159.9)
Capitalization of internal-use software	-		-		(3.6)		-
Net cash used in investing activities	(6.4)		(165.8)		(120.9)		(263.0)
Cash flow from financing activities:
Proceeds from issuance of shares upon exercise of options	33.1		153.8		78.7		338.5
Purchase of treasury shares	(325.0)		(325.0)		(974.9)		(975.0)
Payments related to shares withheld for taxes	(1.6)		(5.3)		(14.6)		(19.6)
Net cash used in financing activities	(293.5)		(176.5)		(910.8)		(656.1)
Unrealized gain (loss) on marketable securities, net	(44.9)		5.5		(68.1)		28.7
Increase (decrease) in cash and cash equivalents, marketable securities and short-term deposits	(80.5)		(96.2)		(218.8)		33.4
Cash and cash equivalents, marketable securities and short-term deposits at the beginning of the period	4,203.4		2,913.4		4,341.7		2,783.8
Cash and cash equivalents, marketable securities and short-term deposits at the end of the period	$         4,122.9		$         2,817.2		$     4,122.9		$     2,817.2

*) represents an amount lower than $ 0.1

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SOURCE Check Point Software Technologies

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Check Point's third-quarter 2026 revenue and earnings?

Check Point reported revenue of $669.8 million and GAAP diluted earnings per share of $1.82. Revenue decreased 1 percent year over year, while GAAP diluted earnings per share decreased 45 percent. Excluding the prior-year one-time tax benefit, GAAP diluted earnings per share increased 1 percent.

What does Check Point expect after its third-quarter 2026 results?

Check Point expects gradual revenue improvement beginning in the fourth quarter. The company believes revenue reached a trough in the third quarter, while acknowledging that the recovery is taking longer than anticipated.

Why did Check Point's prior-year tax benefit affect its third-quarter 2026 earnings comparison?

A tax settlement signed during the third quarter of 2025 led to updated tax provisions that benefited both GAAP and non-GAAP earnings per share by approximately $1.47 in that quarter. This prior-year benefit affects the year-over-year comparison.

How do the Israeli research incentives recognized by Check Point work?

Eligible Israeli companies within multinational groups can receive credits for qualifying research and development expenses to offset corporate taxes or minimum top-up tax. Unused credits may become cash grants after a defined period. The law was enacted on March 30, 2026.