CrowdStrike shares drop on weak revenue guidance
CrowdStrike shares fell about 5% in extended trading on Tuesday after the security software maker issued a weaker-than-expected revenue forecast, News.Az reports citing CNBC.
Here’s how the company did against LSEG consensus:
- Earnings per share: 73 cents adjusted vs. 65 cents expected
- Revenue: $1.10 billion vs. $1.10 billion expected
Costs rose in sales and marketing as well as in research and development and administration, partly because of a broad software outage last summer.
For the current quarter, CrowdStrike called for 82 cents to 84 cents in adjusted earnings per share on $1.14 billion to $1.15 billion in revenue. Analysts polled by LSEG were expecting 81 cents in earnings per share and $1.16 billion in revenue.
CrowdStrike bumped up its guidance for full-year earnings but maintained its expectation for revenue. The company now sees $3.44 to $3.56 in adjusted earnings per share, with $4.74 billion to $4.81 billion in revenue. The LSEG consensus was $3.43 per share and $4.77 billion in revenue. The earnings guidance provided in March was $3.33 to $3.45 in adjusted earnings per share.
Also on Tuesday, CrowdStrike said it had earmarked $1 billion for share buybacks.
In May, CrowdStrike said it would cut 500 employees, which works out to around 5% of its workforce. The company now anticipates a free cash flow margin above 30% for the 2027 fiscal year, said Burt Podbere, its finance chief, on a conference call with analysts.
As of Tuesday’s close, the stock was up 43% so far in 2025, while the S&P 500 index had gained less than 2%.
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