Cybersecurity company Check Point beats profit expectations, sees lower Q3 EPS
CHKP•CEO comments on AI and demand environment
- CEO Nadav Zafrir: "We expect Q3 to mark the trough, followed by a stronger Q4 ... Our industry is at an inflection point. AI ... is driving a collapse in scarcity of adversarial capabilities ... we cannot stop AI adoption, and we must prepare to defend against sophisticated attacks at unprecedented scale."
- The company is hiring hundreds of sales representatives around the world, its CEO said.
- Check Point announced the launch of a new AI Network Firewall.
Buybacks, currency impact and share reaction
- Check Point bought back 2.5 million of its own shares at a cost of $325 million in the quarter. In May, Check Point's board authorised a $2 billion expansion of its share buyback programme.
- Its finance chief told reporters that the shekel's strength against the dollar in the second quarter had an impact on its results, mainly a 3% increase in expenses. Check Point, he said, hedges so a similar impact is expected the rest of 2026.
- Its Nasdaq-listed shares were down 10.5% in early trading.
Third-quarter outlook falls short of estimates
- Check Point forecast Q3 revenue of $655-$685 million, and non-GAAP EPS of $2.43 to $2.53. EPS was $3.94 in Q3 2025.
- LSEG: Q3 revenue view $695.8 million, non-GAAP EPS $2.58.
- It maintained full year 2026 estimates of $2.77-$2.85 billion in revenue and adjusted EPS of $10.05-$10.85.
- LSEG: 2026 revenue view $2.82 billion, non-GAAP EPS $10.42.
