Check Point Software Technologies (CHKP) Q1 2026 earnings summary

Executive summary

• Achieved 5% year-over-year revenue growth in Q1 2026 to $668 million, with double-digit growth in non-GAAP EPS and adjusted free cash flow, driven by strong subscription and emerging technology demand, despite headwinds in appliance product revenues due to go-to-market changes.

• Subscription revenue grew 11% year-over-year to $323 million, fueled by demand for email security, SASE, CTEM, and other emerging technologies.

• Non-GAAP EPS rose 13% year-over-year to $2.50, reflecting operational efficiency and margin improvement; GAAP EPS was $1.81, up 5%.

• Adjusted free cash flow increased 11% year-over-year to $457 million, exceeding guidance.

• Significant leadership changes and acquisitions (Cyata and Cyclops for $92 million) were made to support platform strategy and future growth.

Financial highlights

• Q1 total revenues reached $668 million, up from $638 million in Q1 2025.

• Subscription revenues grew 11% to $323 million.

• Adjusted free cash flow was $457 million, up 11% year-over-year and above the midpoint of projections.

• Non-GAAP operating income was $265 million (40% margin); GAAP operating income was $185 million (28% margin).

• Deferred revenues grew 8% to $2.06 billion; remaining performance obligation increased 7% to $2.592 billion.

Outlook and guidance

• Q2 2026 revenue guidance: $660–$690 million; subscription revenue: $328–$338 million; non-GAAP EPS: $2.40–$2.50.

• Full-year 2026 revenue guidance revised to $2.77–$2.85 billion, reflecting lower firewall appliance sales; subscription revenue and non-GAAP EPS guidance unchanged.

• Adjusted free cash flow guidance for the year remains $1.15–$1.25 billion.

• Management expects go-to-market changes and technology leadership to drive sustainable long-term growth.