Check Point Software Q2 Earnings Top Estimates, Revenues Rise Y/Y

Core Insights - Check Point Software Technologies Ltd. (CHKP) reported Q2 2025 non-GAAP EPS of $2.37, exceeding the Zacks Consensus Estimate by 0.42% and reflecting a 9.2% increase year-over-year [1][10] - The company's Q2 revenues reached $665.2 million, surpassing the consensus mark by 0.66% and showing a 6% year-over-year growth, driven by demand for Quantum Force appliances and product refreshes [2][10] Financial Performance - Security subscription revenues were $297.9 million, up 9.6% year-over-year but slightly below consensus by 0.91% [3] - Product and licenses revenues increased 11.7% year-over-year to $131.9 million, beating consensus by 6.93% [3] - Total revenues from product and security subscriptions amounted to $429.8 million, a 10.3% year-over-year increase, exceeding the consensus mark by 1.47% [3] - Software updates and maintenance revenues decreased 0.9% year-over-year to $235.4 million, missing the consensus by 0.70% [4] Profitability Metrics - Non-GAAP gross profit rose 5% year-over-year to $585 million, with gross margin contracting by 80 basis points to 87.9% [5] - Non-GAAP operating income for Q2 2025 was $271.1 million, a 2.3% year-over-year increase, while the operating margin contracted by 150 basis points to 40.8% due to higher operating expenses [6] Balance Sheet and Cash Flow - As of June 30, 2025, Check Point Software had cash and equivalents totaling $2.91 billion, slightly down from $2.93 billion in the previous quarter [7] - The company generated $262.1 million in cash from operational activities in Q2, a decrease from $421.1 million in the previous quarter [7] - Stock repurchases amounted to $325 million during the reported quarter [7] Guidance - Check Point Software raised its Q3 2025 revenue guidance to between $657 million and $687 million, with non-GAAP EPS projected at $2.40-$2.50 [8] - For the full year 2025, the company expects revenues of $2.66-$2.76 billion and non-GAAP EPS of $9.60-$10.20, with consensus estimates at $2.71 billion and $9.91 respectively [9]