CrowdStrike shares drop on weak revenue guidance

CrowdStrike's shares experienced a 7% decline in after-hours trading on Tuesday following the company's announcement of a revenue forecast that fell short of expectations. In its fiscal first quarter, which concluded on April 30, CrowdStrike reported a nearly 20% increase in revenue. However, the cybersecurity firm also reported a net loss of $110.2 million, translating to 44 cents per share, in stark contrast to the net income of $42.8 million, or 17 cents per share, recorded in the same period last year. The rise in costs attributed to sales and marketing, research and development, and administrative expenses was partly due to a significant software outage last summer. Looking ahead, CrowdStrike projected adjusted earnings per share between 82 cents and 84 cents for the upcoming quarter, with anticipated revenue of $1.14 billion to $1.15 billion. Analysts had predicted an earnings per share of 81 cents and revenue of $1.16 billion. While the company raised its full-year earnings guidance, it maintained its revenue expectations, forecasting adjusted earnings per share between $3.44 and $3.56, with total revenue estimated at $4.74 billion to $4.81 billion. The consensus among analysts was slightly lower, at $3.43 per share and $4.77 billion in revenue. Earlier guidance from March had set the adjusted earnings per share at $3.33 to $3.45. Additionally, CrowdStrike announced a $1 billion share buyback initiative, with CEO George Kurtz emphasizing the company's confidence in its future and commitment to preventing breaches. As of the close of trading on Tuesday, CrowdStrike's stock had risen by 43% in 2025, contrasting sharply with the S&P 500's modest gain of less than 2%. The company’s executives are scheduled to elaborate on these results during a conference call with analysts at 5 p.m. ET.