Check Point Software Technologies (CHKP) Q1 2026 earnings summary

Executive summary

• Achieved total revenues of $668 million in Q1 2026, up 5% year-over-year, with strong growth in subscription revenues and adjusted free cash flow exceeding guidance.

• Non-GAAP EPS rose 13% year-over-year to $2.50, while GAAP EPS increased 5% to $1.81, reflecting operational efficiency and margin improvement.

• Subscription revenue grew 11% year-over-year to $323 million, driven by demand for emerging technologies such as email security, CTEM, and SASE.

• Significant go-to-market changes were implemented to accelerate new logo acquisition and increase wallet share in large enterprises, causing short-term disruption but expected to drive long-term growth.

• Leadership team strengthened with key appointments in revenue, AI security, CTEM, and global marketing.

Financial highlights

• Q1 total revenue reached $668 million, $2 million below midpoint guidance due to lower firewall appliance sales.

• Adjusted free cash flow was $457 million, up 11% year-over-year and $70 million above midpoint guidance.

• Non-GAAP operating income was $265 million (40% margin); GAAP operating income was $185 million (28% margin).

• Deferred revenues grew 8% to $2.06 billion; calculated billings declined 1% year-over-year to $548 million.

• Cash, marketable securities, and short-term deposits totaled $4.4 billion at quarter end, up from $2.93 billion a year ago, mainly due to convertible notes proceeds.

Outlook and guidance

• Q2 2026 revenue expected between $660 million and $690 million; subscription revenue between $328 million and $338 million; non-GAAP EPS $2.40–$2.50.

• Full-year 2026 revenue guidance adjusted to $2.77–$2.85 billion, reflecting lower firewall appliance sales; subscription revenue and non-GAAP EPS guidance unchanged.

• Adjusted free cash flow guidance for the year remains $1.15–$1.25 billion.

• Improvement in appliance revenues expected in the second half of 2026 as sales disruption subsides.

• Management expects go-to-market changes and technology leadership to drive sustainable long-term growth.