Key Highlights

  • Second-quarter 2026 Revenue was US$673.6 million, up 1 per cent, with security subscriptions up 12 per cent to US$332.6 million.
  • Cash, marketable securities and short-term deposits were US$4,203.4 million, helped by a US$2 billion convertible senior notes offering.
  • Check Point repurchased about 2.5 million shares for about US$325 million in the quarter and is due to report third-quarter results on 2 November 2026.

Subscriptions up, products down

Check Point Software Technologies Ltd. (NASDAQ:CHKP), the Israeli cyber-security group, reported second-quarter 2026 results on 30 July 2026. Total revenue was US$673.6 million, up 1 per cent from US$665.2 million. Chief executive Nadav Zafrir said results were in line with the company's expectations while it built its foundation for sustainable growth.

The revenue mix shifted. Products and security subscriptions rose to US$446.0 million from US$429.8 million, within which security subscriptions grew 12 per cent to US$332.6 million from US$297.9 million, while products and licences fell to US$113.4 million from US$131.9 million. Software updates, maintenance and services were US$227.6 million, down from US$235.4 million.

Profitability

GAAP Operating Income was US$185.1 million, a 27 per cent margin, down from US$203.6 million. Non-GAAP operating income was US$259.7 million, or 39 per cent of revenue, compared with US$271.1 million.

GAAP Net Income was US$193.8 million, against US$202.8 million, yet GAAP Diluted Earnings per Share rose to US$1.87 from US$1.84. Non-GAAP net income was US$263.5 million, up from US$261.4 million, and non-GAAP diluted earnings per share were US$2.55, up from US$2.37. That reduction helps explain why per-share figures rose while some profit measures fell.

Convertible notes and buybacks

The Balance Sheet changed materially. Cash, marketable securities and short-term deposits were US$4,203.4 million at 30 June 2026, up from US$2,913.4 million a year earlier, which the company said was primarily due to proceeds from a US$2 billion convertible senior notes offering. Convertible senior notes, net, stood at US$1,974.9 million.

Cash and investments exceeded the net convertible notes by about US$2.2 billion at the quarter end, although the notes are Debt that must be repaid or converted under their terms.

Check Point repurchased about 2.5 million shares for about US$325 million in the quarter. On 11 May 2026, the board authorised a US$2 billion expansion of its ongoing repurchase programme.

Deferred revenue was US$2,025.2 million, of which US$1,397.5 million is current. Remaining performance obligations were US$2.6 billion, up 7 per cent year on year. These figures suggest contracted revenue is growing faster than reported revenue, though the two are not the same measure.

What to watch

The company is due to report third-quarter results on 2 November 2026, according to a 1 October announcement. The second-quarter release gave no 2026 outlook, so there is no company-set range against which to measure the quarter.

Several measures merit attention. Security subscription growth, which was 12 per cent last quarter, shows how quickly Recurring Revenue is building. The decline in products and licences and in maintenance revenue shows the opposing pull on the total. Operating margins, remaining performance obligations and the pace of repurchases against the new convertible debt are the other items to check.