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CHKP Q1 Earnings Beat Estimates, Revenues Increase Y/Y, Stock Up
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Key Takeaways
CHKP beat Q1 EPS estimates with 13% growth, while revenues rose 5% y/y but missed expectations.
Subscription revenues jumped 11% y/y, offset by a 2.9% decline in products amid go-to-market changes.
CHKP cut its 2026 revenue outlook due to weaker firewall demand but kept its EPS guidance intact.
Check Point Software Technologies Ltd. (CHKP - Free Report) stock gained 1.8% following its April 30, 2026, earnings release, lagging the Zacks Security industry’s 2.1% rise.
The company reported first-quarter 2026 non-GAAP earnings of $2.50 per share, which beat the Zacks Consensus Estimate by 3.31%. The bottom line increased 13% year over year.
Total revenues came in at $668 million, up 5% from the year-ago period but missing the consensus mark by 0.62%.
CHKP continued to lean on recurring revenue streams in the quarter. Security subscriptions revenues climbed to $323.2 million, up 11% year over year, supporting the broader shift toward software-driven security consumption.
Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise
Product demand was more mixed. Products and licenses revenues decreased to $110.8 million, down 2.9% year over year.
Software updates and maintenance revenues increased 0.6% to $234.4 million on a year-over-year basis. Management noted that product revenues were affected by go-to-market changes implemented at the start of the quarter, creating near-term headwinds in the security appliance business. CHKP’s Backlog Improves Despite Softer Billings
Check Point ended the quarter with total deferred revenues of $2.06 billion, up 8% year over year, pointing to a larger revenue base already under contract.
Operational indicators were mixed but constructive. Calculated billings were $548 million, a decrease 1% compared with the prior-year period.
Current calculated billings increased 2% year over year to $568 million. Remaining Performance Obligation (RPO) increased 7% year over year to $2.59 billion, indicating an expanding backlog that can underpin future revenue recognition.
CHKP Q1 Profitability Details
On a non-GAAP basis, profitability improved. Non-GAAP operating income for the first quarter of 2026 totaled $264.6 million, up 2.3% year over year. The non-GAAP operating margin contracted 100 bps from the year-ago quarter to 39.6%.
Non-GAAP net income increased to $265.3 million, a rise of 7.8% year over year. Non-GAAP operating margin expanded 110 bps from the year-ago quarter to 39.7%. The largest reconciling items included $59.8 million of stock-based compensation, $19.7 million of amortization of intangible assets and acquisition-related expenses, and $1.4 million of amortization of the debt discount.
CHKP’s Balance Sheet & Cash Flow
Check Point produced strong cash flow in the first quarter of 2026, with net cash provided by operating activities of $445.3 million, up from $310 million in the previous quarter. Free cash flow was $435.9 million, and adjusted free cash flow was $457.3 million in the reported quarter, aided by the add-back of $21.4 million of acquisition-related costs.
Liquidity stayed robust. As of March 31, 2026, total cash and cash equivalents, marketable securities, and short-term deposits were $4.38 billion compared with the previous quarter’s $4.34 billion.
During the first quarter of 2026, the company repurchased approximately 1.9 million shares worth approximately $325 million and paid $92.2 million net in connection with acquisitions.
CHKP’s Q2 & 2026 Outlook Focus on Firewall Pressure
For the second quarter of 2026, CHKP guided total revenues between $660 million and $690 million and subscription revenues between $328 million and $338 million. Non-GAAP EPS are expected in the range of $2.40-$2.50, with GAAP earnings expected to be about 70 cents lower. Adjusted free cash flow is projected at $145 million to $175 million.
For full-year 2026, Check Point lowered its total revenue outlook to $2.77-$2.85 billion from the prior $2.83-$2.95 billion, citing lower revenues from firewall appliances. The company maintained its subscription revenue outlook of $1.35 billion-$1.39 billion and kept its non-GAAP earnings view unchanged at $10.05-$10.85 per share, while updated GAAP earnings are expected to be $2.75 less than the non-GAAP figure. Adjusted free cash flow guidance remained in the range of $1.15-$1.25 billion.
CHKP’s Zacks Rank & Stocks to Consider
Currently, Check Point carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Zacks
CHKP Q1 Earnings Beat Estimates, Revenues Increase Y/Y, Stock Up
Key Takeaways
Check Point Software Technologies Ltd. (CHKP - Free Report) stock gained 1.8% following its April 30, 2026, earnings release, lagging the Zacks Security industry’s 2.1% rise.
The company reported first-quarter 2026 non-GAAP earnings of $2.50 per share, which beat the Zacks Consensus Estimate by 3.31%. The bottom line increased 13% year over year.
Total revenues came in at $668 million, up 5% from the year-ago period but missing the consensus mark by 0.62%.
CHKP’s Q1 Revenue Mix Shows Subscription-Led Growth
CHKP continued to lean on recurring revenue streams in the quarter. Security subscriptions revenues climbed to $323.2 million, up 11% year over year, supporting the broader shift toward software-driven security consumption.
Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise
Check Point Software Technologies Ltd. price-consensus-eps-surprise-chart | Check Point Software Technologies Ltd. Quote
Product demand was more mixed. Products and licenses revenues decreased to $110.8 million, down 2.9% year over year.
Software updates and maintenance revenues increased 0.6% to $234.4 million on a year-over-year basis. Management noted that product revenues were affected by go-to-market changes implemented at the start of the quarter, creating near-term headwinds in the security appliance business.
CHKP’s Backlog Improves Despite Softer Billings
Check Point ended the quarter with total deferred revenues of $2.06 billion, up 8% year over year, pointing to a larger revenue base already under contract.
Operational indicators were mixed but constructive. Calculated billings were $548 million, a decrease 1% compared with the prior-year period.
Current calculated billings increased 2% year over year to $568 million. Remaining Performance Obligation (RPO) increased 7% year over year to $2.59 billion, indicating an expanding backlog that can underpin future revenue recognition.
CHKP Q1 Profitability Details
On a non-GAAP basis, profitability improved. Non-GAAP operating income for the first quarter of 2026 totaled $264.6 million, up 2.3% year over year. The non-GAAP operating margin contracted 100 bps from the year-ago quarter to 39.6%.
Non-GAAP net income increased to $265.3 million, a rise of 7.8% year over year. Non-GAAP operating margin expanded 110 bps from the year-ago quarter to 39.7%. The largest reconciling items included $59.8 million of stock-based compensation, $19.7 million of amortization of intangible assets and acquisition-related expenses, and $1.4 million of amortization of the debt discount.
CHKP’s Balance Sheet & Cash Flow
Check Point produced strong cash flow in the first quarter of 2026, with net cash provided by operating activities of $445.3 million, up from $310 million in the previous quarter. Free cash flow was $435.9 million, and adjusted free cash flow was $457.3 million in the reported quarter, aided by the add-back of $21.4 million of acquisition-related costs.
Liquidity stayed robust. As of March 31, 2026, total cash and cash equivalents, marketable securities, and short-term deposits were $4.38 billion compared with the previous quarter’s $4.34 billion.
During the first quarter of 2026, the company repurchased approximately 1.9 million shares worth approximately $325 million and paid $92.2 million net in connection with acquisitions.
CHKP’s Q2 & 2026 Outlook Focus on Firewall Pressure
For the second quarter of 2026, CHKP guided total revenues between $660 million and $690 million and subscription revenues between $328 million and $338 million. Non-GAAP EPS are expected in the range of $2.40-$2.50, with GAAP earnings expected to be about 70 cents lower. Adjusted free cash flow is projected at $145 million to $175 million.
For full-year 2026, Check Point lowered its total revenue outlook to $2.77-$2.85 billion from the prior $2.83-$2.95 billion, citing lower revenues from firewall appliances. The company maintained its subscription revenue outlook of $1.35 billion-$1.39 billion and kept its non-GAAP earnings view unchanged at $10.05-$10.85 per share, while updated GAAP earnings are expected to be $2.75 less than the non-GAAP figure. Adjusted free cash flow guidance remained in the range of $1.15-$1.25 billion.
CHKP’s Zacks Rank & Stocks to Consider
Currently, Check Point carries a Zacks Rank #3 (Hold).
Onto Innovation (ONTO - Free Report) , MKS Inc. (MKSI - Free Report) and NVIDIA (NVDA - Free Report) are among the better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, Onto Innovation sports a Zacks Rank #1 (Strong Buy), while MKS and NVIDIA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Onto Innovation shares have surged 85.6% year to date. ONTO is scheduled to report its first-quarter 2026 results on May 5.
MKS' shares have rallied 74.8% year to date. MKSI is scheduled to report its first-quarter 2026 results on May 6.
NVIDIA shares have returned 6.4% year to date. NVDA is scheduled to report its first-quarter fiscal 2027 results on May 20.