Check Point Targets Subscription Revenue Above $1.5 Billion in 2027
Key Facts
Check Point Software is targeting annual subscription revenue above $1.5 billion in 2027, with subscription growth expected to accelerate in the first half of that year, the company said on its third-quarter earnings call. The target comes as quarterly total revenue declined, while security subscriptions continued to grow, highlighting the business’s differing performance from the rest of the company. The CFO said the outlook is based on AI security, email and SIEM products, along with a partial impact from price increases announced in the fourth quarter. He added that the company had not included the full benefit of the price increase in its outlook. At the investor call scheduled for November 2, 2026, at 8:30 a.m. U.S. Eastern time, management is expected to discuss its results and outlook.
The company reported revenue of $670 million in the third quarter of 2026, down 1% year over year, while security subscription revenue reached $339 million, up 11% year over year. The divergence puts the subscription target in the context of growth already underway, but does not change the fact that overall revenue declined during the quarter. The company attributed security subscription growth to strong demand for email security, CTEM and AI security. The CFO also said annual recurring revenue for email security, AI security and CTEM products grew more than 38% year over year in the third quarter. Billings calculated for these products increased more than 47% during the quarter, he said on the call.
The company gave a fourth-quarter revenue range of $720 million to $770 million, with a midpoint of $745 million, equivalent to no year-over-year change. It also forecast subscription revenue of $351 million to $362 million for the quarter. The CEO said the company believes revenue bottomed in the third quarter and expects “gradual improvement beginning in the fourth quarter.” But he acknowledged that “the recovery is taking longer than expected.” The guidance places the 2027 target alongside a recovery path management described as gradual, while its subscription outlook depends on product growth and the partial impact of price increases.
On future obligations, remaining performance obligations totaled $2.5 billion as of September 30, 2026, up 5% from a year earlier. These obligations provide an indication of revenue tied to contractual performance not yet completed, and the company reported the figure in its earnings release. It also said cash, marketable securities and short-term deposits totaled $4.123 billion on the same date, compared with $2.817 billion on September 30, 2025. The company attributed the increase mainly to net proceeds of $1.8 billion from a $2 billion convertible-note offering. These figures place the subscription outlook within quarterly results that also included an increase in reported liquidity.
On profitability, non-GAAP diluted earnings per share were about $2.49 in the third quarter of 2026, compared with $3.94 in the same period of 2025. The company said results in the year-earlier quarter benefited from a one-time tax benefit of about $1.47 per share, a factor that explains part of the year-over-year comparison. Check Point repurchased about 2.5 million shares for approximately $325 million during the third quarter. Over the previous twelve months, it repurchased about 9 million shares. The buybacks came alongside the cash and securities balances the company reported at the end of September.
Shares fell 4.67% to $145 in premarket trading on November 2, 2026, compared with a previous close of $152.11 on October 30, according to Investing.com. The report linked the move to investors’ focus on the slower recovery path. CHKP shares closed at $152.11 on October 30, according to EL7 data. The fourth-quarter outlook remains the nearest benchmark for the revenue path the CEO described as gradually improving. The next date set by the company is the investor call on November 2 at 8:30 a.m. U.S. Eastern time.