Check Point Software Technologies (CHKP) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 results with 7% revenue growth to $678M and 20% year-over-year growth in calculated billings, driven by robust demand across all product lines and geographies.

• Non-GAAP EPS rose 75% to $3.94, including a $1.47 per share one-time tax benefit; GAAP EPS increased 79% to $3.28.

• Strategic focus on AI-powered security, open platform philosophy, and hybrid mesh connectivity, with significant investments in R&D and targeted acquisitions like Lakera and Veriti to enhance AI and exposure management capabilities.

• Leadership strengthened with new appointments in sales and marketing to drive future growth and operational excellence.

• Operating cash flow remained strong at $241M, up 23% excluding a one-time $66M tax payment.

Financial highlights

• Q3 total revenues reached $678M, up 7% year-over-year, with security subscriptions up 10% to $305M.

• Non-GAAP net income was $431M, up 69% year-over-year; non-GAAP operating income at $282M (42% margin); GAAP operating income was $199M (29% margin).

• Calculated billings grew 20% year-over-year to $672M; deferred revenues increased 8% to $1.887B; remaining performance obligation rose 9% to $2.4B.

• Gross profit increased to $602M with a gross margin of 89%.

• Cash, marketable securities, and short-term deposits totaled $2.8B at quarter-end.

Outlook and guidance

• Q4 revenue guidance set at $724M–$764M (3%–8% YoY growth); non-GAAP EPS expected between $2.70–$2.80.

• Full-year revenue guidance midpoint raised to $2.725B (6% YoY growth); non-GAAP EPS expected between $11.22–$11.32, up 22%–24% YoY.

• Q4 guidance reflects hardware-heavy quarter and potential FX and acquisition-related margin headwinds.

• GAAP EPS for FY2025 expected to be approximately $2.28–$2.30 less than non-GAAP EPS.

• Management highlighted strong demand for hybrid-mesh network, workspace, and external risk management solutions.