Check Point Software Technologies Ltd ( CHKP )  reported fiscal third-quarter revenue growth of 7% year-on-year to $635.10 million, marginally missing the analyst consensus estimate of $635.14 million. 

The American-Israeli enterprise security solution provider’s adjusted EPS of $2.25 was in line with the analyst consensus estimate.

Revenue from Products and licenses grew by 4.1% to $118.9 million, Security subscriptions increased 11.5% year over year to $276.9 million, and Software updates and maintenance rose 2.4% year over year to $239.3 million.

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Margin: Adjusted operating margin declined to 43% from 45% the prior year. The operating margin declined to 34% from 38% a year ago as operating expenses surged by 12.5% Y/Y.

The company generated $248.9 million in operating cash flow, compared to $222.3 million a year ago, and held $2.87 billion in cash and equivalents as of September-end.

“Check Point delivered great third quarter financial results that were bolstered by double-digit Infinity Platform growth. This success is underscored by double-digit revenue growth in Harmony Email and Infinity Global Services,” said Gil Shwed, Check Point founder and CEO. “We expanded our offerings into the Security Operation Center (SOC) market with the Cyberint acquisition that delivers proactive, AI powered threat intelligence and exposure management.”

Check Point Software Technologies ( CHKP ) stock gained 37% year-to-date.

Price Action: CHKP shares traded lower by 7.69% at $191.96 premarket at the last check Tuesday.

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