Check Point Software Q2 Earnings Top Estimates, Revenues Rise Y/Y

Check Point Software Technologies Ltd. CHKP reported second-quarter 2025 non-GAAP earnings per share (EPS) of $2.37, which beat the Zacks Consensus Estimate by 0.42%. The figure came within management’s guidance of $2.32-$2.42. The bottom line increased 9.2% from the year-ago quarter’s $2.17.

CHKP’s second-quarter revenues of $665.2 million surpassed the consensus mark by 0.66% and came within the company's guidance of $642-$682 million. The top line increased 6% year over year, mainly driven by heightened demand for Quantum Force appliances and a surge in product refreshes, underscoring continued platform investment and expanding adoption of the latest technologies.

Check Point Software Q2 Details

Security subscription revenues were $297.9 million, which increased 9.6% year over year but missed the consensus mark by 0.91%. Products and licenses revenues rose 11.7% year over year to $131.9 million and beat the consensus mark by 6.93%.

Total revenues from product and security subscriptions were $429.8 million, up 10.3% year over year. The figure beat the consensus mark for the segment sales by 1.47%.

Check Point Software Technologies Ltd. Price, Consensus and EPS Surprise

 

Check Point Software Technologies Ltd. price-consensus-eps-surprise-chart | Check Point Software Technologies Ltd. Quote

Software updates and maintenance revenues decreased 0.9% year over year to $235.4 million and missed the consensus mark by 0.70%.

As of June 30, 2025, deferred revenues totaled $1.893 billion, up 4% year over year.

Non-GAAP gross profit increased 5% year over year to $585 million, while gross margin contracted 80 basis points (bps) to 87.9% from the year-ago quarter. Non-GAAP operating expenses grew 7.5% to $314 million. As a percentage of revenues, operating expenses expanded 70 bps to 47.2% from the year-ago quarter.

Non-GAAP operating income for the second quarter of 2025 totaled $271.1 million, up 2.3% year over year. The Non-GAAP operating margin contracted 150 bps from the year-ago quarter to 40.8% due to higher operating expenses.

Balance Sheet & Other Details of CHKP

Check Point Software exited the second quarter with cash and cash equivalents, marketable securities and short-term deposits of $2.91 billion compared with the previous quarter’s $2.93 billion.

The company generated cash worth $262.1 million from operational activities in the second quarter compared with the previous quarter’s $421.1 million. It repurchased stocks worth $325 million in the reported quarter.

Check Point Software’s Q3 & 2025 Guidance

Check Point Software raised its third-quarter guidance while reaffirming the 2025 guidance. For the third quarter, it projects revenues between $657 million and $687 million, and non-GAAP EPS of $2.40-$2.50. The Zacks Consensus Estimate for the third quarter’s top line and EPS is pegged at $670.82 million and $2.44, respectively.

For 2025, Check Point Software expects revenues of $2.66-$2.76 billion and non-GAAP EPS of $9.60-$10.20. The consensus mark for 2025 revenues and EPS is pinned at $2.71 billion and $9.91, respectively.

CHKP’s Zacks Rank & Stocks to Consider

Currently, Check Point Software carries a Zacks Rank #3 (Hold).

Arista Networks ANET, Camtek CAMT and Fortinet FTNT are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Arista Networks sports a Zacks Rank #1 (Strong Buy), and Camtek and Fortinet carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks shares have gained 10.4% year to date. The Zacks Consensus Estimate for ANET’s 2025 earnings is pegged at $2.58 per share, suggesting growth of 13.66% from the year-ago quarter’s reported figure.

Camtek shares have appreciated 21.8% year to date. The Zacks Consensus Estimate for CAMT’s fiscal 2025 earnings is pegged at $3.19 per share, suggesting an increase of 12.72% from the year-ago quarter’s reported figure.

Fortinet shares have returned 7.7% year to date. The Zacks Consensus Estimate for FTNT’s 2025 earnings is pegged at $2.48 per share, suggesting a progress of 4.64% from the year-ago quarter’s reported figure.

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