Check Point Software Technologies Ltd.

Strong Q1 Performance: Check Point reported revenues of $638 million, growing 7% year-over-year and exceeding projections by $4 million. Non-GAAP EPS increased to $2.21, representing a 9% growth YOY. This growth was driven by strong demand for Quantum Force appliances, which saw a 14% increase in product and license revenues.

Deferred Revenues and Billing Growth: Deferred revenues rose by 5% to $1,915 million. Calculated billing reached $553 million, also up 7% YOY. Remaining Performance Obligations (RPO) grew by 11% to $2,424 million, indicating a healthy backlog and continued client engagement.

Favorable Product Transition and Market Upside: The launch of Quantum Force appliances in early 2024 has led to an ongoing refresh cycle driving product sales, with expectations that this trend will continue through 2026. This shift presents an opportunity for Check Point to gain market share from existing competitors who may be facing slower refresh cycles.