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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
