It has been about a month since the last earnings report for Check Point Software (CHKP Quick QuoteCHKP - Free Report) . Shares have added about 2.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Check Point due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Check Point Software Q2 Earnings Top Estimates, Revenues Rise Y/Y

Check Point Software Technologies Ltd. reported second-quarter 2025 non-GAAP earnings per share (EPS) of $2.37, which beat the Zacks Consensus Estimate by 0.42%. The figure came within management’s guidance of $2.32-$2.42. The bottom line increased 9.2% from the year-ago quarter’s $2.17.

CHKP’s second-quarter revenues of $665.2 million surpassed the consensus mark by 0.66% and came within the company's guidance of $642-$682 million. The top line increased 6% year over year, mainly driven by heightened demand for Quantum Force appliances and a surge in product refreshes, underscoring continued platform investment and expanding adoption of the latest technologies.

Check Point Software Q2 Details

Security subscription revenues were $297.9 million, which increased 9.6% year over year but missed the consensus mark by 0.91%. Products and licenses revenues rose 11.7% year over year to $131.9 million and beat the consensus mark by 6.93%.

Total revenues from product and security subscriptions were $429.8 million, up 10.3% year over year. The figure beat the consensus mark for the segment sales by 1.47%.

Software updates and maintenance revenues decreased 0.9% year over year to $235.4 million and missed the consensus mark by 0.70%.

As of June 30, 2025, deferred revenues totaled $1.893 billion, up 4% year over year.

Non-GAAP gross profit increased 5% year over year to $585 million, while gross margin contracted 80 basis points (bps) to 87.9% from the year-ago quarter. Non-GAAP operating expenses grew 7.5% to $314 million. As a percentage of revenues, operating expenses expanded 70 bps to 47.2% from the year-ago quarter.

Non-GAAP operating income for the second quarter of 2025 totaled $271.1 million, up 2.3% year over year. The Non-GAAP operating margin contracted 150 bps from the year-ago quarter to 40.8% due to higher operating expenses.

Balance Sheet & Other Details of CHKP

Check Point Software exited the second quarter with cash and cash equivalents, marketable securities and short-term deposits of $2.91 billion compared with the previous quarter’s $2.93 billion.

The company generated cash worth $262.1 million from operational activities in the second quarter compared with the previous quarter’s $421.1 million. It repurchased stocks worth $325 million in the reported quarter.

Check Point Software’s Q3 & 2025 Guidance

Check Point Software raised its third-quarter guidance while reaffirming the 2025 guidance. For the third quarter, it projects revenues between $657 million and $687 million, and non-GAAP EPS of $2.40-$2.50.

For 2025, Check Point Software expects revenues of $2.66-$2.76 billion and non-GAAP EPS of $9.60-$10.20.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

At this time, Check Point has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Check Point has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Check Point is part of the Zacks Security industry. Over the past month, Varonis Systems (VRNS Quick QuoteVRNS - Free Report) , a stock from the same industry, has gained 6%. The company reported its results for the quarter ended June 2025 more than a month ago.

Varonis reported revenues of $152.16 million in the last reported quarter, representing a year-over-year change of +16.7%. EPS of $0.03 for the same period compares with $0.05 a year ago.

For the current quarter, Varonis is expected to post earnings of $0.08 per share, indicating a change of -20% from the year-ago quarter. The Zacks Consensus Estimate has changed +4.8% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Varonis. Also, the stock has a VGM Score of F.