BTIG kept its Neutral rating on Check Point Software (NASDAQ: CHKP) after the cybersecurity company reported third-quarter results and reduced its fiscal 2026 outlook. The firm also lowered its estimates for fiscal 2026 and 2027.
Billings were $636.2 million, down 5.3% year over year and below BTIG’s $644.7 million estimate and the $647.5 million consensus. Product revenue fell 19.1% to $105.5 million, missing the Street estimate of $108.8 million. Subscription revenue came in slightly above expectations.
Check Point forecast fourth-quarter revenue of $745 million at the midpoint, flat from a year earlier. That is below BTIG’s previous estimate of $797.7 million and the $787 million consensus. The company said several large product-refresh deals planned for the fourth quarter had been delayed until 2027.
Current billings declined 4.5% year over year, compared with growth of 2.1% in each of the previous two quarters. Meanwhile, billings growth across Email, CTEM and AI Security accelerated to 47% from 35% in the second quarter.
The company reported non-GAAP earnings of $2.49 per share and revenue of $669.8 million. Stifel raised its price target to $148 from $130 while maintaining a Hold rating, and Wells Fargo lifted its target to $135 from $130, keeping an Equal Weight rating. Both firms cited expectations for continued subscription growth, while noting limited upside potential.
Sources: Investing.com News.