Check Point Software Technologies (CHKP) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues reached $674 million, up 1% year-over-year, driven by strong subscription growth and ongoing go-to-market improvements, but offset by lower firewall appliance demand.

• Non-GAAP EPS rose 8% to $2.55, and GAAP EPS increased 2% to $1.87.

• Adjusted free cash flow was $161 million (24% of revenue), with cash and equivalents totaling $4.2 billion at quarter-end.

• Robust demand for emerging technologies, including AI security, email security, and CTEM, with over 40% ARR growth and 35% billing growth year-over-year.

• Significant expansion in sales capacity underway, with a campaign to hire approximately 300 new salespeople globally.

Financial highlights

• Subscription revenue grew 12% year-over-year to $333 million, while product revenue declined 14%.

• Deferred revenue increased 7% to $2.025 billion, and Remaining Performance Obligation (RPO) grew 7% to $2.55 billion.

• Non-GAAP operating income was $260 million (39% margin); GAAP operating income was $185 million (27% margin).

• Adjusted free cash flow margin was 23.9%.

• Q2 results included a $28 million benefit from Israeli R&D grants.

Outlook and guidance

• Full-year 2026 guidance maintained: total revenues expected at $2.77–$2.85 billion, subscription revenues $1.345–$1.385 billion, and non-GAAP EPS $10.05–$10.85.

• Q3 2026 revenue guidance is $655–$685 million, subscription revenue $332–$343 million, and non-GAAP EPS $2.43–$2.53.

• Q4 expected to be a record quarter, with a return to product revenue growth and a strong pipeline of qualified deals.

• Hiring ramp for new sales capacity will impact results starting in 2027, not reflected in current guidance.

• Adjusted free cash flow for FY2026 expected at $1.15–$1.25 billion.