Overview
- Check Point reported adjusted earnings of $2.50 per share, above forecasts, on revenue of $668 million as security service revenue rose 11% to $323 million.
- The company cut its 2026 revenue view to $2.77–$2.85 billion due to slower demand for firewall appliances, which are physical devices that protect networks, and it kept its full-year profit target unchanged.
- For the second quarter, it guided to $660–$690 million in revenue and $2.40–$2.50 in adjusted EPS, below market expectations cited by Reuters of $706 million and $2.54.
- Shares fell 14% in early U.S. trading to about $120 after the guidance, and they were down 25% for the year as of the prior close.
- Management said growth is coming from email and cloud security and rising threats linked to artificial intelligence and global tensions, and it is investing in the firewall line and scouting acquisitions it called potential game changers.