CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP): Financial results for Q2 2026
CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP) furnished an SEC Form 6-K — earnings release. Meintzer Check Point Software +1.650.628.2040 ir@checkpoint.com Gil Messing Check Point Software +1.650.628.2260 press@checkpoint.com Check Point Software Reports 2026 Second Quarter Financial Results Tel Aviv, Israel – Thursday, July 30, 2026 – Check Point® Software Technologies
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue, EPS, cash flow, and a significant share repurchase, influencing short‑term price action.
Market read
First‑hand earnings data with a buyback announcement can drive immediate market reaction and inform trading decisions.
What to watch
Rising cash balances from convertible note proceeds could fund future acquisitions or R&D expansion.
Check Point reported $ 673.6 million of Q2 2026 revenue, with security subscriptions up 12 percent year over year, while GAAP and non-GAAP operating income declined from the prior year period.
Security subscriptions revenues grew 12 percent year over year and RPO grew 7 percent, but total revenue increased 1 percent, GAAP operating income declined to $ 185.1 million from $ 203.6 million, and operating cash flow declined to $ 169.6 million from $ 262.1 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $ 673.6 million | – | 1 percent increase year over year |
| Products and licenses revenuesGAAP | $ 113.4 million | – | – |
| Security subscriptions revenuesGAAP | $ 332.6 million | – | 12 percent increase year over year |
| Total revenues from products and security subscriptionsGAAP | $ 446.0 million | – | – |
| Software updates, maintenance and services revenuesGAAP | $ 227.6 million | – | – |
| Total cost of revenuesGAAP | $ 99.5 million | – | – |
| Research and development, netGAAP | $ 112.0 million | – | – |
| Selling and marketingGAAP | $ 239.0 million | – | – |
| General and administrativeGAAP | $ 38.0 million | – | – |
| Total operating expensesGAAP | $ 488.5 million | – | – |
| Operating incomeGAAP | $ 185.1 million | – | – |
| Operating income as a percentage of total revenuesGAAP | 27 percent | – | – |
| Non-GAAP operating incomenon-GAAP | $ 259.7 million | – | – |
| Non-GAAP operating income as a percentage of total revenuesnon-GAAP | 39 percent | – | – |
| Financial income, netGAAP | $ 41.5 million | – | – |
| Income before taxes on incomeGAAP | $ 226.6 million | – | – |
| Taxes on incomeGAAP | $ 32.8 million | – | – |
| Net incomeGAAP | $ 193.8 million | – | – |
| Non-GAAP net incomenon-GAAP | $ 263.5 million | – | – |
| Basic earnings per shareGAAP | $ 1.88 | – | – |
| Diluted earnings per shareGAAP | $ 1.87 | – | 2 percent increase year over year |
| Diluted non-GAAP earnings per sharenon-GAAP | $ 2.55 | – | 8 percent increase year over year |
| Number of shares used in computing diluted earnings per shareGAAP | 103.5 million | – | – |
| Number of shares used in computing diluted non-GAAP earnings per sharenon-GAAP | 103.5 million | – | – |
| Remaining Performance Obligation (RPO)other | $2.6 billion | – | 7 percent increase year over year |
| Net cash provided by operating activitiesGAAP | $ 169.6 million | – | – |
| Free cash flowother | $ 160.7 million | – | – |
| Adjusted free cash flownon-GAAP | $ 160.7 million | – | – |
| Free cash flow marginother | 23.9 % | – | – |
| Adjusted free cash flow marginnon-GAAP | 23.9 % | – | – |
| Total cash and cash equivalents, marketable securities and short-term depositsother | $ 4,203.4 million | – | – |
| Convertible senior notes, netother | $ 1,974.9 million | – | – |
| Total assetsother | $ 7,512.1 million | – | – |
| Total liabilitiesother | $ 4,775.0 million | – | – |
| Total shareholders’ equityother | $ 2,737.1 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Products and licensesNo driver was quantified or specified for this revenue category. | $ 113.4 million | – | – |
| Security subscriptionsThe company cited improving go-to-market execution, expansion of sales capacity, and its Network AI Firewall and AI Defense plane. | $ 332.6 million | – | 12 percent increase year over year |
| Software updates, maintenance and servicesNo driver was quantified or specified for this revenue category. | $ 227.6 million | – | – |
Capital returns
- During the second quarter of 2026, the company re-purchased approximately 2.5 million shares at a total cost of approximately $325 million.
- Purchase of treasury shares was $ 324.9 million in the second quarter of 2026.
- On May 11, 2026, the board of directors authorized a $2 billion expansion of the company’s on-going share repurchase program.
What drove it
- Security subscriptions revenues were $ 332.6 million, and management reported a 12 percent increase year over year.
- RPO was $2.6 billion, a 7 percent increase year over year.
- The company recognized a $28 million reduction in research and development expenses under Israel's new R&D tax incentive program during the second quarter of 2026.
- Financial income, net was $ 41.5 million, compared with $ 28.5 million in the second quarter of 2025.
- Management stated that go-to-market execution is improving and that it is significantly expanding sales capacity.
Concerns
- Total revenues increased 1 percent year over year, while products and licenses revenues were $ 113.4 million compared with $ 131.9 million in the second quarter of 2025.
- Software updates, maintenance and services revenues were $ 227.6 million compared with $ 235.4 million in the second quarter of 2025.
- GAAP operating income was $ 185.1 million compared with $ 203.6 million, and non-GAAP operating income was $ 259.7 million compared with $ 271.1 million.
- Net cash provided by operating activities was $ 169.6 million compared with $ 262.1 million. Adjusted free cash flow was $ 160.7 million compared with $ 262.2 million.
- Selling and marketing expense was $ 239.0 million compared with $ 227.8 million, and general and administrative expense was $ 38.0 million compared with $ 29.8 million.
What to watch
- Security subscriptions revenue growth and the trajectory of RPO.
- Products and licenses revenues and software updates, maintenance and services revenues.
- The pace and expense impact of expanding sales capacity.
- The effect of the Israeli R&D tax incentive program, which reduced second-quarter 2026 R&D expense by $28 million.
- Operating cash flow and adjusted free cash flow following their year-over-year declines.
- Deployment of the $2 billion expansion of the share repurchase program.
Balance sheet and cash flow
- Cash and cash equivalents were $ 596.3 million as of June 30, 2026, compared with $ 1,800.0 million as of December 31, 2025.
- Marketable securities and short-term deposits were $ 1,683.2 million as of June 30, 2026, and marketable securities were $ 1,923.9 million.
- Total cash and cash equivalents, marketable securities and short-term deposits were $ 4,203.4 million as of June 30, 2026, compared with $ 4,341.7 million as of December 31, 2025.
- Convertible senior notes, net were $ 1,974.9 million as of June 30, 2026.
- Cash flow from operations was $170 million in the second quarter of 2026, including $14 million in benefit related to currency hedging transactions.
- Cash flow from operations was $262 million in the second quarter of 2025, including $50 million in benefit related to currency hedging transactions and $6 million of acquisition-related costs.
- The cash balance increase year over year was primarily a result of $1.8 billion of proceeds from the $2 billion convertible senior notes offering, net of issuance costs and net of purchased capped calls.
Analysis
Check Point reported Q2 2026 total revenue of $ 673.6 million, compared with $ 665.2 million in the second quarter of 2025. The growth mix was led by security subscriptions, which rose to $ 332.6 million from $ 297.9 million and was described as a 12 percent year-over-year increase. That growth offset lower products and licenses revenue of $ 113.4 million versus $ 131.9 million and lower software updates, maintenance and services revenue of $ 227.6 million versus $ 235.4 million. RPO was $2.6 billion, up 7 percent year over year, providing a reported indicator of non-cancellable contracted products and services yet to be recognized as revenue.
Profitability was lower year over year despite higher financial income. GAAP operating income was $ 185.1 million, representing 27 percent of total revenues, compared with $ 203.6 million. Non-GAAP operating income was $ 259.7 million, representing 39 percent of total revenues, compared with $ 271.1 million. Selling and marketing expense increased to $ 239.0 million from $ 227.8 million and general and administrative expense increased to $ 38.0 million from $ 29.8 million. R&D expense was $ 112.0 million, and the company recognized a $28 million reduction in R&D expense under Israel's new R&D tax incentive program.
GAAP net income was $ 193.8 million compared with $ 202.8 million, while diluted GAAP EPS increased to $ 1.87 from $ 1.84. Non-GAAP net income was $ 263.5 million versus $ 261.4 million, and diluted non-GAAP EPS was $ 2.55 versus $ 2.37. The filing reported financial income, net of $ 41.5 million compared with $ 28.5 million. Diluted shares used in the GAAP and non-GAAP EPS calculations were 103.5 million, compared with 110.4 million in the prior-year quarter.
Cash conversion weakened in the quarter. Net cash provided by operating activities was $ 169.6 million versus $ 262.1 million, and adjusted free cash flow was $ 160.7 million versus $ 262.2 million. The company stated that Q2 2026 operating cash flow included a $14 million currency-hedging benefit, compared with a $50 million benefit in Q2 2025. Total cash and cash equivalents, marketable securities and short-term deposits were $ 4,203.4 million as of June 30, 2026, while convertible senior notes, net were $ 1,974.9 million. The company repurchased approximately 2.5 million shares for approximately $325 million and had a $2 billion repurchase-program expansion authorized on May 11, 2026.
The release did not provide forward financial guidance. Management characterized results as in line with its expectations and emphasized improved go-to-market execution, expansion of sales capacity, and AI security offerings. The reported period therefore centers on subscription and RPO growth against modest total-revenue growth, lower operating income, and lower operating cash flow.
Management, verbatim
We delivered second quarter results in line with our expectations while strengthening our foundation for sustainable growth.
Nadav Zafrir, Chief Executive Officer
Our go-to-market execution is improving, and we are significantly expanding sales capacity to capture a growing market opportunity.
Nadav Zafrir, Chief Executive Officer
With the industry’s first Network AI Firewall and our AI Defense plane, we are giving enterprises the visibility, control, and protection they need to adopt AI safely across users, applications, and agents, while defending against a new generation of AI-driven threats.
Nadav Zafrir, Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance for revenue, gross margin, operating expenses, tax rate, EPS, cash flow, or other financial metrics was not provided.
- Previous-release outlook was not provided.
- Gross margin was not reported.
- Dividend information was not reported.
- Prior-quarter comparisons for reported income-statement and cash-flow metrics were not provided.
- Explicit year-over-year percentage changes were not reported for most income-statement and cash-flow line items.
- A quantified driver was not provided for products and licenses revenue or software updates, maintenance and services revenue.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Check Point Software Technologies Ltd., a Nasdaq‑listed cybersecurity firm, filed a Form 6‑K with its Q2 2026 earnings.
Ticker impact
Check Point Software reported Q2 2026 results with modest revenue growth and a $325M share repurchase, providing fresh earnings data.
Potential modest price uptick in pre‑market trading, with upside if guidance remains steady.
First‑hand earnings release with new numbers and a $325M buyback tranche; market typically reacts positively to buybacks and EPS beat.
Market effects
Highlights continued demand for cybersecurity subscriptions, supporting sector peers.
Positive for US and Israeli tech markets given the company's dual listing and Israeli R&D incentives.
Reinforces resilience of the global cybersecurity sector amid AI‑driven threat landscape.
Counterpoint
Buyback size may be a defensive move; revenue growth is only 1%, suggesting limited top‑line momentum.
Key entities
- companyCheck Point Software Technologies Ltd.
NASDAQ: CHKP, cybersecurity provider.
- executiveNadav Zafrir
CEO of Check Point, quoted in the release.
