Check Point shares plunge 12% in premarket trade following weak reports
Check Point Software Technologies, the Israeli cybersecurity company, saw its shares drop 12% in premarket trading after reporting third-quarter revenues of $670 million. The results missed analyst expectations and revealed a slower recovery than investors hoped.
Check Point Software Technologies, the veteran Israeli cybersecurity company, saw its shares plunge by some 12% in premarket trading on Wall Street after releasing disappointing third-quarter results for 2026. According to The Jerusalem Post, the company did meet its own guidance with revenues of approximately $670 million, but slightly missed analysts' expectations of $672 million.
Adjusted earnings stood at $2.49 per share. The drop came after the stock had surged nearly 20% over the past month, leaving the market expecting faster growth. Check Point CEO Nadav Zafrir told journalists that the third quarter marked the lowest Point in product revenues, but acknowledged that the road back to growth is more gradual than previously estimated.
The company is currently undergoing a major transformation to expand into cloud security and artificial intelligence. While new areas show promise, sales of legacy products and licenses plummeted by about 19%, dragging down overall revenue by 1% compared to last year. Competitors like Fortinet and CrowdStrike are posting much higher growth rates while Check Point restructures its sales organization and tries to recruit large customers.
Profitability was also propped up partly by an Israeli tax benefit that reduced research and development expenses, while net income fell from $431 million to $254 million. Despite the weak results, Check Point maintains a stable financial position with approximately $4.1 billion in cash and marketable securities alongside $2.0 billion in debt.
Analysts estimate the company will close the fourth quarter with revenues of about $787 million and return to growth in 2027.
