Cybersecurity provider Check Point Software Technologies Ltd ( CHKP ) stock gained on Tuesday after it reported fiscal third-quarter results.

The Tel Aviv-based company reported quarterly revenue growth of 7% year over year to $677.5 million. It topped the analyst consensus estimate of $673.1 million. It also reported: 

Adjusted EPS of $3.94 beat the analyst consensus estimate of $2.45.

Revenue from Products and licenses grew by 9.7% Y/Y to $130.4 million

Security subscriptions increased 10.3% Y/Y to $305.4 million, and 

Software updates and maintenance rose 1.0% Y/Y to $241.7 million.

Also Read: Check Point Stock Falls Despite Earnings Beat As Revenue Rises 7% And Margins Tighten

Margin: Adjusted operating margin declined to 41.6% from 43.1% the prior year, signifying pricing pressures. The operating margin declined to 29.4% from 34.4%.

The company generated $240.6 million in operating cash flow, compared to $248.9 million a year ago, and held $2.82 billion in cash and equivalents as of Sept. 30.

Check Point CEO Nadav Zafrir said the company achieved strong third-quarter results as demand grew across its Hybrid-Mesh-Network, Workspace, and External Risk Management (ERM) solutions. He added that Check Point advanced its AI First strategy with the acquisition of Lakera, reinforcing its ability to deliver a full-stack AI-driven security platform and strengthen its leadership in next-generation cyber defense.

Price Action: CHKP stock is up 10.06% at $211.00 premarket at the last check on Tuesday.

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