CrowdStrike Reports Strong Q4 Earnings, Expands AI-Driven Cybersecurity Offerings

What's Going On With CrowdStrike Stock On Thursday? - CrowdStrike Holdings (NASDAQ:CRWD)

CrowdStrike Holdings, Inc. CRWD shares are trading slightly lower on Thursday. At the Morgan Stanley TMT Conference, CrowdStrike CEO George Kurtz addressed the company's compensation strategy following a significant outage. Initially, CrowdStrike had estimated that the costs associated with the compensation strategy would amount to $60 million over two quarters. Meanwhile, Kurtz revealed that the actual expenses ended up being higher, totaling $86 million. In a press release today, the company has announced a strategic distribution partnership with Arrow Electronics to expand its cybersecurity offerings across the U.S. and Canada. Also Read: Kroger Q4 Earnings: EPS Beat, Sales Miss, Soft Outlook And More This collaboration will make CrowdStrike's Falcon platform available to Arrow's extensive channel partners, including resellers, managed service providers, and managed security service providers. The partnership is expected to enhance Arrow's ability to deliver top-tier cybersecurity solutions to enterprise and mid-market customers. The Falcon platform, known for its AI-native cybersecurity capabilities, will provide Arrow's channel partners with tools to modernize security operations. These tools include Falcon Next-Gen SIEM, Falcon Cloud Security, and the broader Falcon suite, designed to streamline security management and reduce vendor consolidation costs. The collaboration also enables simplified procurement and deployment through ArrowSphere, Arrow's marketplace, with flexible billing, streamlined licensing, and easy integration with existing IT infrastructures. Dan Danielli, Vice President of Global Distribution at CrowdStrike, highlighted the importance of this partnership in strengthening the company's partner-first strategy, ensuring even more organizations have access to its cutting-edge cybersecurity solutions. According to Benzinga Pro, CRWD stock has gained over 10% in the past year. Investors can gain exposure to the stock via TrueShares Technology, AI & Deep Learning ETF LRNZ. Earlier this week, the company reported fourth-quarter revenue of $1.058 billion, beating the consensus estimate of $1.032 billion. The cybersecurity company reported adjusted earnings of $1.03 per share, beating analyst estimates of 85 cents per share. CrowdStrike expects first-quarter revenue to be between $1.1 billion and $1.106 billion versus the current estimates of $1.106 billion. The company anticipates first-quarter adjusted earnings of 64 cents to 66 cents per share versus estimates of 95 cents per share. On Tuesday, CrowdStrike also introduced full-year 2026 guidance. The company expects full-year revenue of $4.743 billion to $4.805 billion versus estimates of $4.763 billion. The company anticipates full-year adjusted earnings in the range of $3.33 to $3.45 per share versus estimates of $4.42 per share. Price Action: CRWD shares are trading lower by 0.99% to $361.82 at last check Thursday. Read Next: Apple's Latest MacBook Air With M4 Chip Is Twice As Fast As Its Predecessor With Lower Price Image via Shutterstock. CRWDCrowdStrike Holdings Inc$362.76-0.73%OverviewLRNZTrueShares Technology, AI & Deep Learning ETF$42.006.63% This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

CrowdStrike Q4 Earnings: Revenue Beat, EPS Beat, 'Strong Momentum,' Shares Slide On Soft Guidance - CrowdStrike Holdings (NASDAQ:CRWD)

CrowdStrike Holdings Inc CRWD reported financial results for the fourth quarter Tuesday after the bell. Here's a look at the key metrics from the report. Q4 Earnings: CrowdStrike reported fourth-quarter revenue of $1.058 billion, beating the consensus estimate of $1.032 billion. The cybersecurity company reported adjusted earnings of $1.03 per share, beating analyst estimates of 85 cents per share. CrowdStrike has beat analyst estimates on the top and bottom lines in every quarter since going public in 2019, according to Benzinga Pro. Total revenue was up 25% year-over-year. Annual recurring revenue increased 23% year-over-year to $4.24 billion after the company added $224.3 million of net new ARR in the quarter. Net cash generated from operations was $345.7 million and free cash flow came in at $239.8 million. The company ended the quarter with $4.32 billion in cash, equivalents and short-term investments. "As businesses of all sizes rapidly adopt AI, stopping the breach necessitates cybersecurity's AI-native platform. We are seeing strong momentum in our Next-Gen SIEM, Cloud Security, and Identity Protection businesses, surpassing $1.3 billion in combined ending ARR," said George Kurtz, co-founder, president and CEO of CrowdStrike. "With 97% gross retention and accounts adopting Falcon Flex adding over $1 billion of in-quarter deal value, customers are increasingly consolidating on the Falcon platform as their AI-native SOC for today and tomorrow." Related Link: Investors Shouldn't 'Run To The Hills' Over Tariffs: Dan Ives Points To 8 AI Stocks 'To Own' Guidance: CrowdStrike expects first-quarter revenue to be between $1.1 billion and $1.106 billion versus estimates of $1.106 billion. The company anticipates first-quarter adjusted earnings of 64 cents to 66 cents per share versus estimates of 95 cents per share. CrowdStrike also introduced full-year 2026 guidance. The company expects full-year revenue of $4.74 billion to $4.81 billion versus estimates of $4.77 billion. The company anticipates full-year adjusted earnings in the range of $3.33 to $3.45 per share versus estimates of $4.42 per share. The soft earnings guidance appears to be weighing on shares. CrowdStrike executives will further discuss the quarter on a call with investors and analysts at 5 p.m. ET. CRWD Price Action: CrowdStrike shares were down 5.9% after hours, trading at $366.95 at the time of publication Tuesday, according to Benzinga Pro. Read Next: Stock Market Sell-Off: History Shows S&P 500 Rebounds After Big Drops Photo: Shutterstock. CRWDCrowdStrike Holdings Inc$370.48-3.20%OverviewMarket News and Data brought to you by Benzinga APIs

CrowdStrike's Fiscal Q4 Results Top Estimates

CrowdStrike delivered a relatively robust report, but also a GAAP net loss for the quarter. CrowdStrike (CRWD 1.94%), a leading provider of cloud-native cybersecurity solutions, released its fiscal 2025 fourth-quarter earnings on March 4. The company reported earnings per share of $1.03, outpacing analysts' consensus estimate of $0.86, and revenue clocked in at $1.059 billion compared to the anticipated $1.03 billion. Despite some unusual expenses and sales-cycle impacts relating to the July 19 outage incident, the company's growth in annual recurring revenue (ARR) indicated positive momentum. CrowdStrike, a leader in cybersecurity, specializes in endpoint protection. Its advanced Falcon platform's cloud-native design allows seamless data collection and analysis, ensuring broad protection against cyber threats. It employs artificial intelligence (AI) to detect threats swiftly and accurately with low rates of false positives. CrowdStrike's focus on a single lightweight agent and a unified security platform sets it apart, and it offers scalable solutions that accommodate customers' evolving needs. The company's recent strategic focuses have included enhancing its cloud and SaaS security offerings and maintaining its strong push towards AI-driven solutions. Quarter Highlights In the fourth quarter of its fiscal 2025, which ended Jan. 31, CrowdStrike's total revenue hit $1.059 billion, a 25.2% rise from the prior-year period's $845.3 million. This was supported by a 23% increase in annual recurring revenue to $4.24 billion. Non-GAAP EPS also performed well, with earnings of $1.03 against predictions of $0.86, an 8.4% improvement from $0.95 in the previous year. However, looking at its GAAP figures reveals that CrowdStrike still faces some challenges. It reported a GAAP loss from operations of $85.3 million compared to the previous year's gain of $29.7 million. The July 19 incident also impacted sales cycles, contributing to a GAAP net loss of $92.3 million, contrasting with its positive net income in the prior-year period. In response to the outage incident, the company chose to offer "customer commitment packages" as part of its effort to retain clients, potentially affecting its future revenue streams. CrowdStrike's Next-Gen Security Information and Event Management (SIEM) and Cloud Security modules showed strong subscription metrics. The rapid adoption of these services is a testament to its strategy of focusing on cloud security. Moreover, acquisitions like Adaptive Shield are complementing its offerings, contributing to its $1.3 billion in ending ARR in these areas. For the fiscal year, CrowdStrike's free cash flow rose 13.5% to $1.07 billion, despite a slight year-over-year dip in free cash flow in Q4. Outlook and Future Prospects CrowdStrike's management remains optimistic, offering fiscal 2026 revenue guidance of $4.7435 billion to $4.8055 billion. The company's strong foundation in AI and cloud security suggests it will maintain its traction within these segments. For the first quarter of fiscal 2026, its revenue guidance range is $1.1006 billion to $1.1064 billion, reflecting cautious optimism. Due to planned operational investments, CrowdStrike is forecasting its non-GAAP EPS for fiscal 2026 will be in the $3.33 to $3.45 range, compared to the previous year's $3.93. Investors should watch for continued ARR growth, strategic acquisitions, and adaptive strategies that enhance the company's unified security platform. These will be critical in maintaining competitiveness and supporting CrowdStrike's goal of hitting $10 billion in ARR by fiscal year 2031. The momentum in cloud-native solutions and customer adoption suggests positive near-term growth potential for the company.

CrowdStrike Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call - CrowdStrike Holdings (NASDAQ:CRWD)

CrowdStrike Holdings, Inc. CRWD will release its fourth-quarter financial results after the closing bell on Tuesday, March 4. Analysts expect the Austin, Texas-based company to report quarterly earnings at 86 cents per share, down from 95 cents per share in the year-ago period. CrowdStrike projects quarterly revenue of $1.03 billion, compared to $845.34 million a year earlier, according to data from Benzinga Pro. On Feb. 13, CrowdStrike announced a breakthrough in agentic AI-driven security with the release of Charlotte AI Detection Triage. Charlotte AI operates with customer-defined bounded autonomy and triages security detections with over 98% accuracy. CrowdStrike shares fell 1.8% to close at $382.73 on Monday. Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables. Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period. Canaccord Genuity Group analyst Michael Walkley maintained a Buy rating and increased the price target from $370 to $420 on March 3, 2025. This analyst has an accuracy rate of 75%. JP Morgan analyst Brian Essex maintained an Overweight rating and raised the price target from $418 to $450 on Feb. 28, 2025. This analyst has an accuracy rate of 66%. Rosenblatt analyst Catherine Trebnick maintained a Buy rating and increased the price target from $385 to $450 on Feb. 27, 2025. This analyst has an accuracy rate of 71%. UBS analyst Roger Boyd maintained a Buy rating and boosted the price target from $396 to $450 on Feb. 26, 2025. This analyst has an accuracy rate of 65%. B of A Securities analyst Tal Liani maintained a Buy rating and increased the price target from $400 to $420 on Feb. 26, 2025. This analyst has an accuracy rate of 76%. Considering buying CRWD stock? Here's what analysts think: Read This Next: Wall Street's Most Accurate Analysts Give Their Take On 3 Defensive Stocks Delivering High-Dividend Yields CRWDCrowdStrike Holdings Inc $379.32-0.89% Overview Market News and Data brought to you by Benzinga APIs