Check Point Q3 revenue drops 1% to $670m
Key points
- Check Point Software reported third-quarter revenue of $669.8 million, down 1% year over year, while security subscription revenue increased 11% to $338.6 million.
- GAAP operating income declined to $177.2 million, while operating cash flow increased to $264.3 million.
- The company expects gradual revenue improvement beginning in Q4 2026 but said its recovery is taking longer than anticipated.
Check Point Software Technologies (NASDAQ:CHKP) reported third-quarter 2026 revenue of $669.8 million, down 1% year over year, as stronger security subscription sales failed to offset declines elsewhere.
Security subscription revenue increased 11% to $338.6 million, while GAAP operating income fell to $177.2 million from $199.1 million, representing an operating margin of approximately 26%.
GAAP diluted earnings per share declined 45% to $1.82, although earnings increased 1% after excluding a one-time tax benefit recorded in the corresponding period last year.
Operating cash flow increased to $264.3 million from $240.6 million, while remaining performance obligations rose 5% to $2.5 billion, representing contracted revenue not yet recognised in financial statements.
Check Point expects gradual revenue improvement beginning in the fourth quarter but acknowledged that its recovery is taking longer than anticipated.
The company ended the quarter with $4.123 billion in cash, marketable securities and short-term deposits, supported partly by proceeds from convertible notes, while quarterly share repurchases totalled approximately $325 million.
Check Point continues to focus on cybersecurity subscriptions and recurring revenue, with research and development spending supporting its security product portfolio, although reported research expenses included a $25 million incentive reduction.
