Investing.com -- On Monday, Check Point Software Technologies Ltd. (NASDAQ:CHKP) reported third quarter results that met earnings expectations but fell short on revenue, as the cybersecurity company navigates a challenging recovery period.
Shares of the company tumbled -9.22% in pre-market trading following the release.
The company posted adjusted earnings per share of $2.49, matching analyst estimates, while revenue of $669.8 million came in slightly below the consensus estimate of $672.1 million. Revenue declined 1% YoY from $677.5 million in the same quarter last year. Security subscriptions revenue grew 11% YoY to $338.6 million, driven by demand for Email, CTEM, and AI Security products.
"Third-quarter results were in line with our expectations. Security subscriptions revenue grew 11% year over year, supported by strong demand for Email, CTEM, and AI Security," said Nadav Zafrir, CEO of Check Point Software. "We believe revenues reached a trough in the third quarter, and we expect gradual improvement beginning in the fourth quarter."
Adjusted earnings of $2.49 per share compared to $3.94 in the third quarter of 2025. However, excluding a one-time tax benefit of approximately $1.47 per share recognized in last year's third quarter related to a tax settlement, adjusted EPS increased 1% YoY.
The company generated $264.3 million in cash flow from operations, representing 39% of total revenues, compared to $240.6 million in the prior year period. Check Point repurchased approximately 2.5 million shares for $325 million during the quarter.
The company recognized a $25 million reduction in research and development expenses under Israel's new research and development tax incentive program enacted in March 2026. Remaining Performance Obligation reached $2.5 billion, up 5% YoY.
Original Article
Check Point Software stock tumbles 9% on missing revenue despite in-line earnings
Kosmos Energy stock sinks on third quarter earnings, revenue miss
Estee Lauder stock jumps on earnings beat and raised outlook
