Check Point Software (CHKP, Financial) just delivered a solid Q3, with $635 million in revenue marking a 7% year-over-year lift and adjusted EPS climbing to $2.25, up 9% from last year. Yet, despite meeting expectations, shares dropped nearly 15% as investors held out for more. CEO Gil Shwed highlighted the growth across their flagship Infinity Platform, where double-digit adoption rates signal that Check Point is setting a new standard in cybersecurity. The acquisition of Cyberint this quarter is a strategic move to deepen AI-driven threat intelligence within its Security Operations Center, positioning Check Point to offer unparalleled, proactive defense.
Financially, Check Point is disciplined yet aggressive. Operating income reached $218 million, holding a strong 34% margin, while deferred revenues grew to $1.745 billion—a sign of sustained customer commitment. This quarter also saw Check Point make a serious show of confidence by buying back $325 million in shares, a nod to their shareholders and a clear signal that management believes in their long-term growth trajectory.
With cash flow from operations hitting $249 million, Check Point's balance sheet remains rock-solid, underscoring their commitment to growth and shareholder value. Shwed emphasized that demand for offerings like Harmony Email and Infinity Global Services continues to climb, positioning Check Point for further momentum as they round out the year with an expanded, cutting-edge security portfolio.
