Check Point Revenue Reaches $670 Million as Security Subscription Revenue Grows 11% in Q3
Key Facts
Check Point Software reported revenue of $670 million in the third quarter of 2026, down 1% year over year, while security subscription revenue rose 11% to $339 million. In its earnings release issued on November 2, the company said remaining performance obligations reached $2.5 billion on September 30, up 5% from a year earlier. The figures show a divergence between declining total revenue and continued subscription growth, an important driver of the company’s results. Management also said demand for email, security exposure management and AI security supported subscription growth. The company scheduled its earnings call for November 2 at 8:30 a.m. Eastern time.
Adjusted earnings per share were $2.49, down 37% from the third quarter of 2025, while GAAP earnings per share came to $1.82, a decline of 45%. The company said both measures rose 1% year over year when excluding the effect of a one-time tax benefit recorded in the year-earlier quarter. That benefit was about $1.47 per share, after the company updated its tax provisions following a tax settlement signed during the third quarter of 2025. Adjusted earnings per share in that quarter were $3.94, while GAAP earnings per share were $3.28. The reported declines therefore reflect a year-over-year comparison that includes an unusual effect in the comparison base, while the figures adjusted to exclude it show a different earnings trajectory.
Cash flow from operations was $264 million, equal to 39% of revenue, while adjusted free cash flow reached $258 million, or 38% of revenue. Cash, marketable securities and short-term deposits totaled $4.123 billion on September 30, 2026, compared with $2.817 billion on the same date a year earlier. The company attributed the increase mainly to net proceeds of $1.8 billion from an offering of $2 billion in senior convertible notes, after issuance costs and capped-call purchases. It also recorded a $25 million reduction in research and development expenses under Israel’s new R&D tax incentive program. These items put liquidity and cash flow alongside the quarter’s revenue and earnings results.
Compared with the previous quarter, revenue fell from $674 million in the second quarter, when it had risen 1% year over year, to $670 million in the third quarter, down 1% year over year. Security subscription revenue rose from $333 million in the second quarter to $339 million, but its annual growth rate slowed from 12% to 11%. Remaining performance obligations also declined from $2.6 billion, up 7% year over year in the second quarter, to $2.5 billion at the end of September, with its growth rate slowing to 5%. In the first quarter, revenue was $668 million, up 5% year over year, while subscriptions were then supported by demand for email security, security exposure management and secure edge access services. These comparisons show a slowdown in growth in revenue, subscriptions and remaining performance obligations across the first three quarters of the year.
Chief Executive Nadav Zafrir said security subscription growth of 11% was supported by “strong demand for email, continuous threat exposure management and AI security.” But he added that “the recovery is taking longer than expected,” while describing leading indicators as improving. The company linked subscription growth to demand in those areas, while its comments pointed to a recovery that remains delayed. In the first quarter, management said go-to-market changes introduced at the start of the quarter created short-term pressure on the security appliance business, while subscription revenue remained a strength. In the second quarter, Zafrir said the company was expanding its sales capacity and that its foundation for sustainable growth was getting stronger.
Check Point shares, listed under the ticker CHKP, closed at $152.11 on October 30, 2026, according to EL7 daily closing data. The earnings release did not include a later share price. The earnings call was scheduled for November 2 at 8:30 a.m. Eastern time, or 5:30 a.m. Pacific time. The company said the call would cover its third-quarter results. The call follows the results announcement dated the same day as the release.