Check Point Sees Revenue Recovery Starting in Fourth Quarter

Check Point Software Technologies Ltd. (NASDAQ:CHKP) shares are down almost 4% on Monday after the company reported mixed third-quarter results.

Adjusted EPS of $2.49 narrowly beat the $2.48 analyst estimate. However, revenue fell 1% year over year (Y/Y) to $669.8 million, missing the consensus estimate of $672.03 million.

CEO Nadav Zafrir said revenue likely reached a low point in the third quarter, with gradual improvement expected from the fourth quarter. However, he cautioned that the recovery is taking longer than anticipated.

Security subscription revenue rose 11% Y/Y to $339 million, while remaining performance obligations (RPO) increased 5% to $2.5 billion. Strong demand for Email, CTEM and AI Security supported subscription growth.

Margins, Cash Flow and Share Buybacks

Check Point reported an adjusted operating margin of 37% and adjusted free cash flow of $258 million. Cash flow from operations totaled $264 million during the quarter.

The company repurchased approximately 2.5 million shares for about $325 million in the third quarter. Over the past 12 months, its buybacks totaled approximately 9 million shares.

Cash, marketable securities and short-term deposits stood at $4.123 billion as of Sept. 30.

CHKP Edge Rankings: Momentum and Quality vs Value

Below is the Benzinga Edge scorecard for Check Point Software Technologies, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Bullish (Score: 77.19) — The stock is showing stronger recent price/trend characteristics versus many peers, even with Monday’s decline.
• Quality: Bullish (Score: 81.12) — The profile screens as high quality, which can help explain why buyers often show up on deeper pullbacks.
• Value: Weak (Score: 11.04) — The valuation factor is a headwind here, suggesting the stock doesn’t screen as "cheap" on common comparative metrics.
• Growth: Weak (Score: 22.03) — Growth scoring is soft, meaning the market may demand cleaner execution to justify sustained upside.

The Verdict: Check Point Software Technologies’s Benzinga Edge signal reveals a quality-and-momentum-leaning setup, but with weaker value and growth support underneath. For longer-term bulls, that usually means pullbacks can be buyable, but follow-through tends to depend on the company proving it can re-accelerate growth while holding key trend support.

CHKP ETF Exposure: GGTL Weight and Flow Risk

• Gabelli Global Technology Leaders ETF (NYSE:GGTL): 2.24% Weight

Significance: Because CHKP carries meaningful weight in this fund, any significant inflows or outflows for the ETF will likely force automatic buying or selling of the stock.

CHKP Stock Today: Monday Price Action

CHKP Stock Price Activity: Check Point Software Tech shares are trading lower by 3.87% at $146.22 at the time of publication on Monday, according to Benzinga Pro data.

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