Check Point Posts Strong Q3 Results: Billings Surge 20%, Shares Jump 8% in Pre-Market Trading

 Cybersecurity leader Check Point Software Technologies reported strong third-quarter results, meeting Wall Street forecasts and posting a 20% jump in billings (new orders) — a sharp rebound from last quarter’s weakness. The surge signals renewed sales momentum and growing confidence in future revenue streams. Following the results, Check Point’s shares rose 8% in pre-market trading on Wall Street

Check Point’s revenue rose 7% year-over-year to $678 million, with North America up 10%, outpacing single-digit gains in other regions.

Net profit reached $3.28 per share, boosted by a one-time tax settlement. Excluding that, the company still beat analyst expectations by two cents per share.

Operating profit dipped to $282 million, reflecting recent startup acquisitions and the weaker U.S. dollar against the Israeli shekel, which increased local operating costs.

“Our acquisition strategy is driven by opportunity, not constraint,” Tzafrir said. “We expect more acquisitions as we identify the right technologies.”

Cash Flow and Tax Settlement

Check Point reported a cash flow of $241 million, which includes $66 million in payments to tax authorities in Israel and abroad to settle outstanding assessments for the years 2016–2020.
According to CFO Roy Golan, the settlement did not involve retained earnings.

“We are a very profitable company and pay significant taxes in Israel,” Golan said. “But we wanted clarity and reached an understanding.”

Excluding the one-time payment, cash flow jumped 23%. During the quarter, Check Point also paid $160 million for land in Tel Aviv, in partnership with Israel Canada, where it plans to build a new headquarters.

Acquisition of Swiss AI Firm Lakera

The quarter’s major development was Check Point’s $300 million acquisition of Swiss startup Lakera, aimed at strengthening its AI-driven cybersecurity solutions for enterprises adopting artificial intelligence technologies.

Founded in 2021 by former Google and Meta researchers, Lakera employs 70 people and is known for its proprietary LLM model continuously refined by real-world user interactions — unlike most AI firms that rely on third-party models like OpenAI or Anthropic.

The deal raised concerns that Check Point might shift its AI innovation hub from Israel to Switzerland, but Tzafrir dismissed these fears.

“Lakera’s acquisition stems from its unique capabilities,” Tzafrir said. “It doesn’t change our strategy — Israel remains our innovation center. We’ve recently hired hundreds of AI professionals in Israel.”

He added that Check Point will also expand development in the U.S., India, and Europe, emphasizing that “exceptional talent is global.”

Outlook: Confidence into 2025

With strong billings growth, expanding AI infrastructure, and an active acquisition pipeline, Check Point appears poised for sustained momentum heading into 2025.
CEO Tzafrir noted that the company’s AI-focused roadmap and global expansion strategy are key to maintaining its leadership in the cybersecurity industr