Check Point Software's Q1 Earnings Top Estimates, Revenues Rise Y/Y

Core Viewpoint - Check Point Software Technologies Ltd. reported strong first-quarter 2025 results, with earnings and revenues exceeding consensus estimates, driven by robust demand for its products and services [1][2][3]. Financial Performance - Non-GAAP EPS for Q1 2025 was $2.21, beating the Zacks Consensus Estimate by 0.91% and increasing 8.3% year-over-year from $2.04 [1]. - Total revenues for Q1 2025 reached $637.8 million, surpassing the consensus mark by 0.22% and reflecting a 7% year-over-year growth [2]. - Security subscription revenues were $291 million, up 10% year-over-year, while products and licenses revenues rose 14% to $114 million, exceeding consensus estimates by 8.94% [3]. Revenue Breakdown - Total revenues from products and security subscriptions amounted to $404.7 million, an 11.27% increase year-over-year, beating the segment sales consensus by 2.12% [4]. - Software updates and maintenance revenues decreased 0.9% year-over-year to $233.1 million, missing the consensus mark by 2.45% [4]. Profitability Metrics - Non-GAAP gross profit increased 5.2% year-over-year to $564 million, with gross margin contracting 110 basis points to 88.4% [5]. - Non-GAAP operating income for Q1 2025 was $259 million, up 2.8% year-over-year, while operating margin contracted 150 basis points to 40.6% due to higher operating expenses [6]. Balance Sheet and Cash Flow - As of March 31, 2025, Check Point had cash and equivalents totaling $2.93 billion, up from $2.78 billion in the previous quarter [7]. - The company generated $421.1 million in cash from operational activities in Q1, compared to $249 million in the previous quarter, and repurchased $325 million in stocks during the reported quarter [7]. Guidance - For Q2 2025, Check Point projects revenues between $642 million and $682 million and non-GAAP EPS in the range of $2.32-$2.42, with the consensus estimates at $661.89 million and $2.37, respectively [8]. - For the full year 2025, the company expects revenues between $2.66 billion and $2.76 billion and non-GAAP EPS in the range of $9.60-$10.20, with consensus estimates at $2.71 billion and $9.9, respectively [9].