Cybersecurity company Check Point beats profit expectations, sees lower Q3 EPS (updated)

Check Point Software Technologies

30/07/2026 13:06

Adds Q3 projections, CEO comments, share reaction
TEL AVIV, July 30 (Reuters) - Israel-based cybersecurity firm Check Point Software Technologies CHKP.O reported a higher-than-expected rise in quarterly profit on Thursday, boosted by double-digit revenue growth in subscriptions that protect corporate networks from cyber threats.
Check Point also projected lower earnings in the third quarter while keeping its 2026 estimates.	

Second-quarter earnings per share excluding one-off items rose to $2.55 from $2.37 a year earlier. Revenue rose 1% to $674 million.
LSEG estimates: EPS ex items $2.45, revenue $676 million
Check Point had forecast revenue of $660 million to $690 million, and EPS ex-items between $2.40 and $2.50.
Second-quarter security subscriptions revenue reached $333 million, up an annual 12%.
Check Point forecast Q3 revenue of $655-$685 million, and non-GAAP EPS of $2.43 TO $2.53. EPS was $3.94 in Q3 2025.
LSEG: Q3 revenue view $695.8 million, non-GAAP EPS $2.58.
It maintained full year 2026 estimates of $2.77-$2.85 billion in revenue and adjusted EPS of $10.05-$10.85.
LSEG: 2026 revenue view $2.82 billion, non-GAAP EPS $10.42.
CEO Nadav Zafrir: "We expect Q3 to mark the trough, followed by a stronger Q4 ... Our industry is at an inflection point. AI ... is driving a collapse in scarcity of adversarial capabilities ... we cannot stop AI adoption, and we must prepare to defend against sophisticated attacks at unprecedented scale."
Check Point bought back 2.5 million of its own shares at a cost of $325 million in the quarter. In May, Check Point's board authorised a $2 billion expansion of its share buyback programme. 
Its finance chief told reporters that the shekel's strength against the dollar ILS= in the second quarter had an impact on its results, mainly a 3% increase in expenses. Check Point, he said, hedges so a similar impact is expected the rest of 2026.
The company is hiring hundreds of sales representatives around the world, its CEO said.
Check Point announced the launch of a new AI Network Firewall.
Its Nasdaq-listed shares were down 10.5% in early trading.


 (Reporting by Steven Scheer. Editing by Mark Potter, Tomasz Janowski and Nick Zieminski)
 ((steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters Messaging: X: @StevenMScheer))