Key Highlights

  • Revenue was USD 670 million, down 1% year over year, while subscription Revenue rose 11% to USD 339 million.
  • Non-GAAP Earnings were USD 2.49 per diluted share, and non-GAAP Operating Income was USD 251 million, a 37.4% margin.
  • Adjusted free Cash Flow was USD 258 million, and the company repurchased 2.5 million shares for USD 325 million.
  • Deferred revenue rose 6% to USD 1.992 billion, while calculated billings fell 5% to USD 636 million.

Quarter in Numbers

Check Point Software Technologies Ltd. (NASDAQ:CHKP), a Cybersecurity company, reported third-quarter 2026 total revenue of USD 670 million, at the midpoint of its guidance and down 1% year over year, mainly because of lower firewall appliance refresh activity. Lower refresh projects also reduced software updates, maintenance and services revenue, through less attached support and less professional services revenue. Subscription revenue was USD 339 million, USD 1 million above the midpoint of the company's projection and up 11%, and it now represents 51% of total revenue.

Non-GAAP earnings per diluted share were USD 2.49, USD 0.01 above the midpoint of projections, and adjusted free cash flow was USD 258 million, USD 8 million above the midpoint. Non-GAAP operating income was USD 251 million, a Margin of 37.4%.

Deferred revenue at the end of the quarter was USD 1.992 billion, up 6% year over year. Calculated billings totaled USD 636 million, down 5%, against a tougher comparison because the third quarter of 2025 benefited by about five points from deal slippages out of the second quarter and unusually early renewals from the fourth quarter. Remaining performance obligations grew 5% to USD 2.513 billion. The company holds about USD 4 billion of cash and generated more than USD 1 billion of free cash flow over the trailing period.

Capital Return and Currency

In the third quarter the company repurchased 2.5 million shares for USD 325 million at an average price of USD 132 per share. Over the last 12 months it purchased 9 million shares for approximately USD 1.4 billion, and management said it is continuing Buybacks at the same level while keeping flexibility for acquisitions.

Currency created a headwind of about USD 30 million to operating expenses year to date, mainly from a weaker U.S. dollar against the Israeli shekel, and management projects a larger effect in the fourth quarter, which is reflected in its guidance. Hedging rates in the first half of 2027 are less favorable than in 2026, so an additional expense headwind is projected if exchange rates stay consistent.

Product and Growth Commentary

Chief executive Nadav Zafrir said the go-to-market changes introduced at the start of the year are now embedded and that sales capacity expansion is progressing. He said the company expects product revenue to begin improving in the fourth quarter, reflecting a measured recovery, and cited growth in email security, exposure management and artificial intelligence security. Email security annual Recurring Revenue recently crossed USD 200 million. In July the company launched its AI Network Firewall, and it recently introduced a next-generation Maestro Hyperscale Orchestrator aimed at neoclouds, telcos and government customers.

Full-Year Reference Points

Full-year guidance includes non-GAAP Earnings Per Share of USD 10.25 to USD 10.37, GAAP earnings USD 2.74 lower, and adjusted free cash flow of USD 1.136 billion to USD 1.166 billion. Items to track include firewall refresh timing, subscription growth, billings recovery, currency effects and repurchase pace.