{
  "id": 18095705,
  "title": "Check Point shares plunge 12% in premarket trade following weak reports",
  "url": "https://urgent.news/2026/11/04/check-point-shares-plunge-12-in-premarket-trade-following-weak-reports",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-11-04T09:06:52.000Z",
  "source": {
    "name": "Jerusalem Post Tech & Start-Ups",
    "slug": "jerusalem-post-tech-start-ups",
    "url": "https://www.jpost.com/business-and-innovation/tech-and-start-ups/article-913787"
  },
  "original_language": "en",
  "account": "Shares of Check Point Software Technologies experienced a 12% drop in premarket trading on Wall Street after the company released weaker-than-expected third-quarter results for 2026. The Israeli cybersecurity firm met its own guidance, but fell short of analysts' expectations and failed to reassure investors of a recovery. Following a nearly 20% gain over the past month, the market anticipated better news, but received an admission that improvement would be delayed.\n\nCheck Point's fourth-quarter revenues amounted to approximately $670 million, a 1% decline from the same period last year, and slightly below the $672 million predicted by analysts. Adjusted earnings per share were $2.49, meeting forecasts. While this isn't a major miss, even a small disappointment can negatively impact investors in a company struggling to return to growth. CEO Nadav Zafrir emphasized that the third quarter marked the lowest point in revenues, and recovery is expected to start from the fourth quarter and beyond, albeit at a slower pace than anticipated.\n\nThe company's shift towards cloud security, artificial intelligence, and new products and services has shown some success, but legacy product sales have plummeted by 19%. This decline is particularly pronounced when considering the global cyber market's growth and the performance of competitors like Fortinet and CrowdStrike. Check Point is struggling to catch up, in part due to changes in its sales organization, which are time-consuming and weigh on sales pace.\n\nDespite these challenges, the company has secured several multi-million dollar deals in infrastructure and energy sectors, with customers in the United States, Europe, and Asia. However, investors remain skeptical until these new deals translate into revenues and profits. Check Point's financial position remains stable, with $4.1 billion in cash and marketable securities, and nearly $2.0 billion in debt from convertible bonds. This financial cushion allows the company to continue investing in new products, hiring employees, and expanding operations.\n\nAnalysts predict a rebound in the fourth quarter, with revenues expected to reach around $787 million, a significant improvement from the third quarter. The outlook for 2027 also points to a return to growth, with a 6% increase in sales. CEO Nadav Zafrir believes the company has passed a turning point and expects product revenues to begin improving from the fourth quarter onwards and continue rising in 2027.",
  "summary": "Check Point missed analysts' third-quarter expectations for 2026, the CEO admits that the recovery is slower than anticipated, and the stock falls in premarket trading.",
  "key_points": [
    "Check Point shares drop 12% in premarket trading after weak 2026 Q3 results",
    "Company revenue declined 1% year-over-year to $670 million",
    "CEO Nadav Zafrir expects recovery to start in 4th quarter, growth in 2027"
  ],
  "editors_take": "The decline in legacy product sales and slow organizational changes place Check Point at a disadvantage compared to growing competitors as the firm struggles to transition toward cloud and artificial intelligence.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}