Check Point Software Technologies (CHKP) investor relations material

Executive summary

• Q3 revenue was $669.8M, down 1% YoY; security subscription revenue grew 11% to $338.6M, or 51% of total revenue.

• Management viewed Q3 as the revenue trough, with gradual improvement expected from Q4; recovery is taking longer than anticipated.

• AI Security, Email Security and CTEM recorded over 38% ARR growth and over 47% calculated billings growth YoY.

Financial highlights

• Non-GAAP net income was $253.8M and diluted EPS was $2.49; GAAP net income was $185.2M and diluted EPS was $1.82.

• Adjusted free cash flow was $257.9M, or 38.5% of revenue, and $1.179B for the trailing 12 months.

• Deferred revenue reached $1.992B, up 6% YoY; RPO was $2.513B, up 5% YoY.

• Calculated billings were $636M, down 5% YoY, against a difficult comparison due to prior-year deal slippage and early renewals.

Outlook and guidance

• Q4 guidance: revenue $720M–$770M; subscription revenue $351M–$362M; non-GAAP EPS $2.71–$2.83; adjusted free cash flow $260M–$290M.

• Q4 GAAP EPS is guided 70 cents below non-GAAP EPS.

• Updated FY2026 guidance: revenue $2.732B–$2.782B versus prior $2.770B–$2.850B; subscription revenue $1.345B–$1.356B versus prior $1.345B–$1.385B.

• FY2026 non-GAAP EPS guidance is $10.25–$10.37; adjusted free cash flow is $1.136B–$1.166B, both below prior guidance ranges.

• Subscription growth may decelerate slightly in Q4, then accelerate in H1 2027; annual subscription revenue is expected to exceed $1.5B in 2027. Product improvement is expected gradually, with large refresh projects shifted into 2027.