IT security solutions provider Check Point Software Technologies Ltd. (CHKP) reported Wednesday an increase in second-quarter profit, reflecting growth in revenues across its main product lines and geographies. Adjusted earnings per share, as well as revenues came in above analysts' expectations. For the second quarter, the Israel-based company's net income increased to $102.86 million or $0.48 per share from $75.6 million or $0.36 per share in the previous year. On a non-GAAP basis, net income was $122.4 million or $0.58 per share, higher than $100.86 million or $0.48 per share in the previous year. Non-GAAP net income for the recent quarter excludes stock-based compensation expenses of $9.08 million, amortization of intangible assets of $12.89 million and restructuring and otheracquisition related costs totaling $588 thousand. The prior-year quarter recorded stock-based compensation expenses of $7.27 million, amortization of intangible assets of $13.45 million and restructuring and other acquisition related costs totaling $9.03 million. On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 17% to $261.09 million from $223.64 million in the same quarter last year. Twenty two analysts had a consensus revenue estimates of $253.61 million for the quarter. Products and licenses revenues were $103.9 million, 25% higher than $82.8 million in the year earlier. Software updates, maintenance and services revenues increased to $157.19 million from $140.84 million in the preceding year.
Operating income for the quarter improved to $122.11 million from $86.68 million reported in the prior-year period. Non-GAAP operating income was $144.67 million, up from $116.44 million a year ago. Non-GAAP operating margin was 55% compared to 52% in the preceding year. During the quarter, the company said it repurchased 1.5 million shares at a total cost of $50 million. Gil Shwed, chairman and chief executive officer said in a statement, "Our record second quarter results were a nice conclusion to the first half of the year. We continued to execute and deliver top and bottom line growth while further expanding our product portfolio."
In its immediately preceding first quarter, the company posted net earnings of $98.04 million or $0.46 per share, on revenues of $245.08 million. For the six-month period, the company reported net income of $200.9 million or $0.95 per share, higher than $156.52 million or $0.74 per share in the same period last year. Non-GAAP net income was $239.19 million or $1.14 per share, higher than $196.36 million or $0.93 per share in the previous year. Revenues increased to $506.17 million from $418.65 million in the preceding year. Among others in the market, Cisco Systems, Inc. (CSCO) on May 12 reported 63% increase in its third-quarter profit from last year, as sales jumped 27% amid pick up in global economic recovery and technology spending by corporates. The world's largest computer networking gear maker reported GAAP net income of $2.2 billion or $0.37 per share, compared to $1.3 billion or $0.23 per share for the year-ago quarter. Net sales for the third quarter rose 27% to $10.37 billion.
Another competitor Juniper Networks, Inc. (JNPR) Tuesday recorded a surge in its second-quarter profit over last year, driven by double-digit revenue growth in both of its segments, and higher margins. The Sunnyvale, California-based company reported GAAP net income attributable to shareholders of $130.5 million or $0.24 per share for the second quarter, an increase from $14.8 million or $0.03 per share in the prior year quarter. Second quarter net revenues increased 24% to $978.3 million.
CHKP closed Tuesday's regular trading at $33.24 on the Nasdaq. In the past 52 weeks, the shares have been trading in a range of $24.17-$36.4, with a three-month average volume of 2.65 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.