CrowdStrike Beats Expectations with Strong Q4 Performance

CrowdStrike delivered solid earnings, reporting EPS of $1.03 versus estimates of $0.86. The revenue also exceeded expectations, showcasing notable growth despite recent challenges. Investors should note the company's positive momentum and strategic focus moving forward.

Date: 05-03-2025

AI Rating: 7

Earnings Per Share (EPS): CrowdStrike reported a non-GAAP EPS of $1.03, surpassing analysts' expectations of $0.86. This marks an increase of 8.4% from the previous year's EPS of $0.95, indicating a positive trend in earnings and investor sentiment towards its profitability.

Revenue Growth: Revenue for Q4 totaled $1.059 billion, a significant increase of 25.2% from the $845.3 million reported in the same quarter last year. This growth indicates strong market demand for CrowdStrike's services and an effective business strategy.

Free Cash Flow (FCF): Although the free cash flow for Q4 decreased by 15.3% to $239.8 million from the previous year's $283.0 million, the annual figure rose by 13.5%, reaching $1.07 billion. This positive year-over-year performance is crucial for ongoing operations and future investments.

Net Income: The report highlighted GAAP figures that revealed challenges, including a GAAP net loss of $92.3 million compared to a gain in the prior-year period. This loss, influenced by unusual expenses and sales-cycle impacts, introduces caution into the outlook but is offset by positive operational performance in other areas.

Outlook and Guidance: CrowdStrike is forecasting revenue for fiscal 2026 in the range of $4.7435 billion to $4.8055 billion, coupled with a projected non-GAAP EPS of $3.33 to $3.45, down from $3.93 in the prior year. This cautious optimism positions the company for continued growth, although analysts should remain alert to the operational investments that may affect profit margins. Overall, CrowdStrike's positive EPS and revenue growth metrics highlight its strength amid operational challenges.

Stocks: CRWD