CrowdStrike Stock Price Down Big as Guidance Bites Again

CrowdStrike beat firmly on both top and bottom lines in earnings, continuing a run that stretches back multiple years. An EPS of $1.03 (expected $0.86), and revenue of $1.06billion ($1.03B expected) were not enough to continue the bullish sentiment that had driven the stock to 12.33% gains on a YTD basis leading into the print, as the guidance, as has been a pattern during this earnings season, failed to keep the bears at bay.

Pre-market trading reacted negatively to the fiscal year 2025 results, with CrowdStrike’s stock (NASDAQ: CRWD) dropping over 9% as markets seemed concerned regarding the company's future earnings outlook.

Leading into the day, Canaccord maintained its Buy rating on CrowdStrike, raising the price target from $370 to $420 as the company approached its earnings report. Analysts noted the setup appeared promising in the leadup, however further adjustments might be on the way based on the guidance.

Looking ahead to Q1, CrowdStrike forecasted earnings between $0.64 and $0.66 per share, falling short of Wall Street’s estimate of $0.95 per share. Despite this, the company reported strong Q4 performance, with results that exceeded both market and internal forecasts, as operating income reached $217.3 million compared to an anticipated $188 million. The full year EPS outlook of $3.33-$3.45, also fell significantly below the expected $4.43 that the street were looking for. 

This performance, however, comes against a backdrop of broader market challenges, including the repercussions from a significant IT outage on July 19 that affected Microsoft Windows systems and led to a more cautious outlook for fiscal year 2026.

Amid these mixed signals, CrowdStrike remains well-positioned thanks to rising global demand for cybersecurity solutions and market trends that favor vendor consolidation.