Check Point’s subscription growth offsets continued weakness in firewall products

Transcript intelligence

What changed

Compared with the prior quarter’s lowered full-year revenue outlook and stated expectation of subscription acceleration, management maintained FY2026 guidance this quarter. Subscription revenue grew, while firewall product revenue remained weak; management now expects a Q4 product rebound. The AI Network Firewall launch and plan to hire roughly 300 salespeople for 2027 are notable execution priorities.

Guidance delta

FY2026 guidance was maintained. Management expects a Q4 rebound in product revenue; the prior quarter had lowered full-year revenue guidance amid go-to-market disruption.

Key takeaways

• Subscription revenue grew 12% year over year, but total revenue was essentially flat and firewall product revenue declined 14%.
• Management maintained FY2026 guidance and expects firewall product revenue to rebound in Q4.
• The AI Network Firewall and expanded AI Defense platform extend the company’s AI-security offering; revenue contribution remains uncertain.
• The planned sales-force expansion creates an execution test, with analysts asking about its timing, earnings impact, and margin effect.

Management priorities

• Roll out AI Network Firewall across private and public cloud and SASE, and continue developing the AI Defense platform.
• Expand design-partner programs and integrate firewall capabilities at the GPU level with NVIDIA.
• Hire sales and R&D staff, including a roughly 300-person sales hiring campaign intended to support 2027 growth.