Key Takeaways
- Check Point reported Q1 2026 revenue of $668 million, up 5% YoY, with security subscription revenue growing 11% to $323 million.
- GAAP operating income was $185 million (28% of revenue); non‑GAAP operating income rose to $265 million (40% of revenue).
- EPS increased 5% GAAP to $1.81 and 13% non‑GAAP to $2.50 YoY.
- Operating cash flow grew 6% to $445 million; adjusted free cash flow rose 11% to $457 million.
- Remaining Performance Obligation (RPO) reached $2.6 billion, up 7% YoY, reflecting a strong contracted backlog.
- Cash and marketable securities jumped to $4.38 billion, driven mainly by the $1.8 billion net proceeds from a $2 billion convertible senior notes offering.
- Sherif Seddik was appointed Chief Revenue Officer effective May 1 2026, succeeding Itai Greenberg.
- The company repurchased ~9 million shares for $325 million and acquired Cyata and Cyclops for ~$92 million net cash.
- A new Israeli R&D tax‑incentive law may provide future cash grants for eligible Israeli activities within multinational groups.
- Check Point will present at multiple investor conferences in Q2 2026, with details available on its IR website.
Financial Overview
Check Point Software Technologies Ltd. posted total revenues of $668 million for the quarter ended March 31 2026, representing a 5% increase compared with the same period in 2025. The growth was anchored by security subscription revenues, which climbed 11% year‑over‑year to $323 million, reflecting robust demand for newer offerings such as email security, exposure management, and Secure Access Service Edge (SASE). Product revenue, however, faced near‑term headwinds due to Go‑To‑Market (GTM) changes implemented at the quarter’s start, which temporarily affected the security appliance business. Despite these challenges, the company highlighted that the GTM shifts, together with its market‑leading technology, are expected to generate sustainable long‑term value.
Profitability Measures
GAAP operating income for Q1 2026 amounted to $185 million, or 28% of total revenues. Excluding certain items, non‑GAAP operating income was stronger at $265 million, representing 40% of revenue. Earnings per share followed a similar pattern: GAAP EPS rose 5% to $1.81, while non‑GAAP EPS increased 13% to $2.50 year‑over‑year. The disparity between GAAP and non‑GAAP figures primarily reflects adjustments for stock‑based compensation, amortization of intangible assets, acquisition‑related costs, and debt‑discount amortization, as detailed in the accompanying reconciliation tables.
Cash Flow and Liquidity
Cash generated from operating activities rose 6% YoY to $445 million. Adjusted free cash flow—a metric defined as operating cash flow less purchases of property, equipment, and other assets, net of acquisition‑related costs— increased 11% to $457 million. The company’s liquidity position strengthened markedly, with cash, marketable securities, and short‑term deposits totaling $4.38 billion as of March 31 2026, up from $2.93 billion a year earlier. This surge was principally attributable to the net proceeds of approximately $1.8 billion from a $2 billion convertible senior notes offering, after deducting issuance costs and the cost of purchased capped calls.
Backlog and Capital Allocation
Remaining Performance Obligation (RPO), which measures the total value of non‑cancellable contracted products and services yet to be recognized as revenue, stood at $2.6 billion at quarter‑end, a 7% increase YoY. The growing RPO underscores a durable contracted backlog that supports future revenue visibility. In terms of capital deployment, Check Point repurchased roughly 9 million shares during Q1 2026 for an aggregate consideration of about $325 million under its share‑repurchase program. Additionally, the company completed the acquisition of Cyata and Cyclops for approximately $92 million in net cash consideration, broadening its technology portfolio.
Leadership Changes
Effective May 1 2026, Sherif Seddik assumed the role of Chief Revenue Officer, succeeding Itai Greenberg, who is stepping down from that position. Mr. Seddik previously served as President of International Sales since 2023 and brings more than three decades of global sales leadership experience to the CRO post. The appointment is intended to bolster Check Point’s commercial execution as it pursues growth in emerging security segments and expands its go‑to‑market capabilities.
R&D Incentives and Strategic Outlook
A new Israeli law enacted on March 31 2026, as part of the 2026 budget, provides tax incentives for research and development activities carried out in Israel. Eligible Israeli companies within multinational groups can earn tax credits for qualifying R&D expenses, which may offset corporate taxes or minimum top‑up tax, with unused credits convertible into cash grants after a defined period. Check Point anticipates that this legislation could enhance its R&D productivity and potentially generate future cash benefits, reinforcing its commitment to innovation in AI‑powered cybersecurity.
Investor Engagement
Check Point will host a conference call with the investment community on April 30 2026 at 8:30 AM ET (5:30 AM PT), with a live webcast and replay available on its investor relations website. Throughout Q2 2026, members of the management team are slated to present at a series of prominent technology and TMT conferences, including events hosted by Needham, J.P. Morgan, Jefferies, TD Cowen, Baird, Evercore, Bank of America, Mizuho, and FBN. Presentations will be accessible via webcast on the company’s website, offering investors updated insights into Check Point’s strategic initiatives, product roadmap, and market outlook.
About Check Point
Check Point Software Technologies Ltd. (www.checkpoint.com) is a leading AI‑powered, cloud‑delivered cybersecurity platform provider protecting over 100,000 organizations worldwide. The company leverages AI across its Infinity Platform to enhance threat detection accuracy and response speed. Its portfolio includes cloud‑delivered solutions such as Check Point Harmony (workspace security), Check Point CloudGuard (cloud security), Check Point Quantum (network security), and Check Point Infinity Core Services (collaborative security operations and services).
Forward‑Looking Statements and Non‑GAAP Disclosure
The press release contains forward‑looking statements concerning future product expectations, cybersecurity trends, AI adoption, new officer appointments, and conference participation. Actual results may differ due to risks including product development challenges, customer acceptance, market dynamics, AI‑related issues, competition, executive turnover, and broader economic or geopolitical factors. Check Point uses non‑GAAP measures—such as non‑GAAP operating income, EPS, and adjusted free cash flow—to provide additional insight into its core operations, excluding items like stock‑based compensation, intangible‑asset amortization, acquisition‑related expenses, and debt‑discount effects. Reconciliations of these non‑GAAP figures to the most directly comparable GAAP metrics are included in the financial statements accompanying the release.
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