CrowdStrike Stock Pops After Beat-And-Raise Quarter
CrowdStrike stock is higher after the cybersecurity firm beat expectations for its first quarter and issued a strong outlook. Here's what you need to know.
CrowdStrike Holdings (CRWD) stock is trading higher Wednesday after the cybersecurity company beat top- and bottom-line expectations for its fiscal first quarter and lifted its full-year forecast.
In the three months ended April 30, CrowdStrike's revenue increased 33% year-over-year to $921 million and its earnings per share (EPS) were up 63.2% from the year prior to 93 cents. CRWD also said its free cash flow jumped 41.8% year-over-year to $322.5 million, representing 35% of revenue.
"CrowdStrike started the fiscal year from a position of momentum and exceptional strength," thanks to impressive increases in annual recurring revenue, CrowdStrike co-founder and CEO George Kurtz said in a statement. The company's Falcon platform "creates a wide competitive moat and uniquely enables CrowdStrike to solve the industry's biggest cybersecurity, IT and data problems. Customers of all sizes are standardizing on the Falcon platform to achieve better security outcomes and lower their total cost of ownership."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
CRWD's results easily beat analysts' expectations. According to Yahoo Finance, Wall Street was anticipating revenue of $905 million and earnings of 89 cents per share.
For the second quarter, CrowdStrike said it expects revenue in the range of $958.3 million to $961.2 million and EPS in the range of 98 cents to 99 cents. The guidance is ahead of analysts' average estimates for revenue of $954.4 million and earnings of 91 cents per share.
As a result of the strong start to its fiscal year, CrowdStrike raised its full-year outlook. The company now anticipates revenue of $3.98 billion to $4.01 billion and earnings per share to arrive between $3.93 to $4.03, up from its previous guidance of revenue in the range of $3.92 billion to $3.99 billion and earnings in the range of $3.77 per share to $3.97 per share.
Is CrowdStrike stock a buy, sell or hold?
Today's earnings-related upside is just more of the same for the cybersecurity stock. Indeed, CrowdStrike has been a big winner so far in 2024, rising more than 25% for the year to date as of this writing.
Analysts think there is plenty of upside from here too. According to S&P Global Market Intelligence, the consensus analyst target price for CRWD stock is $397.36, representing implied upside of more than 20% to current levels. Meanwhile, the consensus recommendation is a Strong Buy.
Speaking for the bulls is Jefferies analyst Joseph Gallo, who maintained a Buy rating on the tech stock after earnings. The company is well-positioned to benefit from rising demand for all things generative artificial intelligence (GenAI), Gallo says, adding that there are "many levers for CRWD to derive revenue from the GenAI lifecycle via its data loss protection product, data organization and governance (via Flow), and increase in cloud workloads driving cloud security."
Related Content
-
States That Tax Social Security Benefits in 2026Retirement Tax Not all retirees who live in states that tax Social Security benefits have to pay state income taxes. Will your benefits be taxed?
-
QUIZ: What Type Of Retirement Spender Are You?Quiz What is your retirement spending style? Find out with this quick quiz.
-
How to Avoid the Financial Quicksand of Early Retirement LossesSequence of returns — experiencing losses early on — can quickly deplete your savings, highlighting the need for strategies that prioritize income stability.
-
This Is How Early Retirement Losses Can Dump You Into Financial Quicksand (Plus, Tips to Stay on Solid Ground)
Sequence of returns — experiencing losses early on — can quickly deplete your savings, highlighting the need for strategies that prioritize income stability.
-
How an Elder Law Attorney Can Help Protect Your Aging Parents From Financial MistakesIf you are worried about older family members or friends whose financial judgment is raising red flags, help is out there — from an elder law attorney.
-
Q4 2025 Post-Mortem From an Investment Adviser: A Year of Resilience as Gold Shines and the U.S. Dollar DivesFinancial pro Prem Patel shares his take on how markets performed in the fourth quarter of 2025, with an eye toward what investors should keep in mind for 2026.
-
'Donroe Doctrine' Pumps Dow 594 Points: Stock Market TodayThe S&P 500 rallied but failed to turn the "Santa Claus Rally" indicator positive for 2026.
-
Is Your Emergency Fund Running Low? Here's How to Bulk It Back UpIf you're struggling right now, you're not alone. Here's how you can identify financial issues, implement a budget and prioritize rebuilding your emergency fund.
-
An Expert Guide to How All-Assets Planning Offers a Better RetirementAn "all-asset" strategy would integrate housing wealth and annuities with traditional investments to generate more income and liquid savings for retirees.
-
7 Tax Blunders to Avoid in Your First Year of Retirement, From a Seasoned Financial PlannerA business-as-usual approach to taxes in the first year of retirement can lead to silly trip-ups that erode your nest egg. Here are seven common goofs to avoid.
-
How to Plan for Social Security in 2026's Changing Landscape, From a Financial ProfessionalNot understanding how the upcoming changes in 2026 might affect you could put your financial security in retirement at risk. This is what you need to know.
