Key Highlights

● Second-quarter 2026 revenue was US$674 million, up 1% from a year earlier.

● Security subscriptions revenue rose 12% to US$333 million.

● The board authorised a US$2 billion expansion of the share-repurchase programme on 11 May 2026.

● The company raised about US$1.8 billion in net proceeds from convertible notes.

Latest verified development

Check Point Software Technologies Ltd. (NASDAQ:CHKP), the Israeli cybersecurity group, reported second-quarter 2026 results on 30 July. Total revenue was US$674 million, up 1% from a year earlier. Chief executive Nadav Zafrir said the company delivered results in line with its expectations. The release did not include forward financial guidance.

Two capital-structure items stand out. The company raised about US$1.8 billion in net proceeds from a US$2 billion convertible notes offering, and on 11 May 2026 its board authorised a US$2 billion expansion of the share-repurchase programme. The two are close in time, but the release does not state that the note proceeds are earmarked for buybacks.

Operating performance

The growth mix shifted toward recurring security subscriptions. Security subscriptions revenue was US$333 million, up 12%, even as total revenue rose just 1%. GAAP operating income was US$185 million, or 27% of revenue, while non-GAAP operating income was US$260 million, or 39%.

Earnings per share were US$1.87 on a GAAP basis, up 2%, and US$2.55 on a non-GAAP basis, up 8%. Remaining performance obligations, a measure of contracted backlog, were US$2.6 billion, up 7%. The company also noted that an Israeli research and development tax incentive reduced second-quarter R&D expenses by US$28 million, a benefit that flatters GAAP costs.

The pattern of modest revenue growth, strong subscription growth and rising per-share profit through repurchases is common among mature software companies, and the second-quarter figures fit it.

Cash and capital returns

Operating cash flow was US$170 million, or 25% of revenue, and adjusted free cash flow US$161 million, or 24%. Cash, marketable securities and short-term deposits reached US$4,203 million, up from US$2,913 million a year earlier, the increase mainly reflecting the convertible notes.

In the quarter Check Point repurchased about 2.5 million shares for roughly US$325 million. The convertible notes add a liability alongside the larger cash balance, so net liquidity is lower than the headline cash figure suggests.

Subscription mix and the revenue growth gap

The central question is whether total revenue growth of 1% accelerates as the shift toward subscriptions continues, given that subscription revenue grew 12%. Contracted backlog of US$2.6 billion, up 7%, offers one gauge, as does whether the second-quarter pace of buybacks is maintained under the enlarged authorisation.

Margins carry a caveat: the US$28 million R&D tax benefit flatters GAAP costs, and the non-GAAP margin of 39% is the company's own adjusted measure.

Against 1% total growth, a 12% subscription line and a US$2 billion larger buyback authorisation show where the company is placing its weight.