Check Point Software Technologies Ltd. (CHKP) saw its shares plummet 12.95% during intraday trading on Thursday, following the release of its first-quarter financial results.
The cybersecurity company reported quarterly revenue of $668 million, which fell short of the analyst consensus estimate of approximately $672.5 million. While adjusted earnings per share of $2.50 beat expectations, the revenue shortfall was attributed to product sales being negatively impacted by go-to-market changes implemented at the beginning of the quarter. These strategic adjustments created near-term headwinds for the company's security appliance business.
Furthermore, the company revised its full-year 2026 revenue outlook downward to a range of $2.77-$2.85 billion, from a prior forecast of $2.83-$2.95 billion. Its second-quarter revenue guidance of $660-$690 million also came in below analyst expectations, contributing to investor concerns over near-term growth prospects.