CrowdStrike Reports Loss, Shares Drop 9% in Extended Trading

CrowdStrike's shares plunged 9% following a loss in Q4 and cautious outlooks. Forecasts for the upcoming quarters indicate earnings and revenue might not meet analyst expectations, raising concerns for investors.

Date: 05-03-2025

AI Rating: 4

In the latest report, **Earnings Per Share (EPS)** showed a challenging outlook for CrowdStrike. For the first quarter of 2026, adjusted earnings per share are anticipated to range from $0.64 to $0.66, with analysts expecting an average of $0.65. The company's adjusted EPS for the full year 2026 is expected to be between $3.33 and $3.45, while analysts have set their estimates at $3.53. The reported **Net Income** for the last quarter highlighted a loss of $92.28 million, or $0.37 per share, drastically down from a profit of $53.70 million, or $0.22 per share, from the same period last year. Although the company recorded an **adjusted net income** of $260.95 million or $1.03 per share, this was below the expected $0.86 per share projection by analysts. This insight demonstrates potential difficulties the company may face in the near future. On the positive side, **Revenue Growth** is evident, with quarterly revenues climbing 25% to $1.06 billion from $845.3 million year-over-year. This growth, however, juxtaposed against the loss might create investor hesitance. The projections for total revenues in the first quarter are between $1.10 billion and $1.11 billion, aligning with the average analyst estimate of $1.1 billion. Overall, the significant drop in earnings against expectations and a loss instead of expected profits could indicate a challenging road ahead for CrowdStrike despite some revenue growth. The stock's 9% drop in extended trading reflects immediate investor concerns over these mixed signals.

Stocks: CRWD