Check Point Software shares fall after company trims 2026 estimates

By Reuters News

By Steven Scheer

- Check Point Software Technologies CHKP.O cut its 2026 revenue forecast on Monday, sending its shares down 6% to $143 in morning trading, as the Israel-based cybersecurity firm reported quarterly profit roughly flat excluding a year-earlier tax benefit.

  • Check Point trimmed its 2026 revenue estimate to $2.732 billion to $2.782 billion from a prior $2.770 billion to $2.850 billion. It also narrowed its adjusted earnings per share estimate to $10.25-$10.37 from $10.05-$10.85

  • Analysts had expected 2026 revenue of $2.8 billion and adjusted EPS of $10.44, according to LSEG data

  • CEO Nadav Zafrir called 2026 a "challenging" year and said the company's recovery is taking longer than anticipated. "We believe we have reached a turning point," he told reporters. "We expect product revenue to begin improving from the fourth quarter onwards, continuing into 2027"

  • Third-quarter EPS excluding one-off items fell to $2.49 from $3.94 a year earlier. Revenue slipped 1% to $670 million

  • In connection with a tax settlement signed during the third quarter of 2025, the company updated its tax provisions during that quarter, which resulted in a benefit of approximately $1.47 to EPS

  • Excluding the benefit, EPS in the third quarter of 2025 was $2.47

  • Security subscriptions revenue in the third quarter reached $339 million, up an annual 11%

  • In Q3, Check Point bought back 2.5 million of its own shares at a cost of $325 million. In May, Check Point's board authorised a $2 billion expansion of its share buyback programme. Over the past 12 months, Check Point bought back 9 million of its own shares

  • Check Point projects fourth-quarter revenue of $720 million to $770 million and non-GAAP EPS of $2.71-$2.83

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