Check Point shares fall as firewall weakness drags on growth
Cybersecurity firm posts modest gains while restructuring its sales organization.
A lukewarm quarter for Check Point: the cybersecurity company reported on Thursday just 5% growth in first-quarter revenue, reaching $668 million. This marks a sharp decline from $745 million in the fourth quarter of 2025. Although the fourth quarter is typically seasonally strong, the size of the gap this time is considered unusually large.
Subscription revenue rose 11% to $323 million, but weakness was recorded across other segments. Check Point shares fell about 10% in premarket trading on the Nasdaq.
“We saw a decline in firewall projects, and at the same time we began implementing changes in the sales organization. We are confident that these changes will strengthen us in the medium and long term, as they are aimed at improving performance,” said CEO Nadav Zafrir.
The company also announced leadership changes, including the replacement of the chief sales officer and the global sales head, alongside two additional appointments in the technology organization. “We are confident in our ability to increase market share in cybersecurity and help organizations adopt AI safely,” Zafrir added.
In terms of profitability, Check Point continues to deliver strong results. The operating margin stood at 28%, with operating profit totaling $185 million. On a non-GAAP basis, operating profit reached $265 million, or 40% of revenue.
On the bottom line, the company reported net income of $192 million, or $1.81 per share. Adjusted earnings came in at $2.50 per share, up 13% compared to the first quarter of 2025.
Cash flow from operating activities rose 6% to $445 million. During the quarter, Check Point completed the acquisitions of two startups, Cyata and Cyclops, for a combined $92 million.
The company’s cash reserves reached $4.3 billion, following the issuance of $2 billion in convertible bonds in the first quarter, the first such move in its history.
