CrowdStrike Holdings Inc., the Austin-based cybersecurity company, reported mixed financial results for its fiscal first quarter ending April 30, 2025, on Tuesday, June 3. While the company beat Wall Street expectations on adjusted earnings per share, it also announced a significant net loss and issued a cautious revenue forecast that triggered a 5% drop in its shares during after-hours trading.
For the quarter, CrowdStrike posted adjusted earnings of 73 cents per share, surpassing the 65 cents expected by analysts polled by LSEG and the 66 cents average estimate from 15 analysts surveyed by Zacks Investment Research. Revenue came in at $1.10 billion, exactly matching consensus forecasts and marking a nearly 20% year-over-year increase.
However, despite the strong top-line growth and better-than-expected earnings per share, the company reported a net loss of $110.2 million, or 44 cents per share. This compares to a net income of $42.8 million, or 17 cents per share, in the same quarter last year. The loss was driven largely by rising costs in sales and marketing, research and development, and administrative expenses. Part of these increased costs were attributed to a broad software outage experienced last summer.
Looking ahead to the fiscal second quarter ending in July 2025, CrowdStrike forecasted adjusted earnings per share between 82 cents and 84 cents on revenue ranging from $1.14 billion to $1.15 billion. These projections slightly missed analyst expectations, which called for 81 cents per share and $1.16 billion in revenue. The cautious revenue outlook contributed to the stock’s 5% decline in extended trading.
Despite this, the company raised its full-year adjusted earnings guidance to a range of $3.44 to $3.56 per share, up from the earlier forecast of $3.33 to $3.45 issued in March 2025. Revenue expectations for the full fiscal year remain steady between $4.74 billion and $4.81 billion, closely aligned with the LSEG consensus of $4.77 billion. CFO Burt Podbere also noted on a conference call with analysts that CrowdStrike now anticipates a free cash flow margin exceeding 30% by fiscal year 2027, signaling confidence in long-term profitability.
Adding to investor confidence, CrowdStrike announced a $1 billion share buyback program on Tuesday. CEO George Kurtz emphasized the company’s commitment, stating, "Today's announced share repurchase reflects our confidence in CrowdStrike's future and unwavering mission of stopping breaches." This move comes shortly after the company disclosed plans in May 2025 to reduce its workforce by approximately 500 employees, about 5% of its staff, as part of cost management efforts.
Despite the recent stock dip, CrowdStrike’s shares have soared 43% so far in 2025, significantly outperforming the S&P 500 index’s less than 2% gain during the same period. This strong performance reflects sustained investor optimism about the company’s position in the cybersecurity sector.
Supporting this bullish sentiment, Wedbush analyst Daniel Ives maintained an "Outperform" rating on CrowdStrike and raised the price target from $475.00 to $525.00, a 10.53% increase. This adjustment reflects continued confidence in CrowdStrike's market performance and growth potential. However, broader analyst consensus presents a more nuanced picture. Based on one-year price targets from 45 analysts, the average target price stands at $419.36, with a high estimate of $550.00 and a low estimate of $185.00. This average target implies a potential downside of 13.10% from the current trading price around $482.58.
Similarly, the consensus brokerage recommendation from 53 firms rates CrowdStrike at 2.1 on a scale where 1 is Strong Buy and 5 is Sell, indicating a general "Outperform" stance. GuruFocus estimates the stock’s fair value (GF Value) at $454.39 for one year ahead, suggesting a downside of nearly 6% from current levels, based on historical multiples and projected business performance.
These varying perspectives underscore the challenges and opportunities facing CrowdStrike as it navigates a competitive and rapidly evolving cybersecurity landscape. While the company’s revenue growth and earnings beat expectations, rising costs and a net loss highlight the ongoing investments required to maintain its market leadership and innovate its cloud-based security solutions.
CrowdStrike’s recent workforce reduction and the significant share repurchase program indicate a strategic balancing act between managing expenses and returning value to shareholders. CEO Kurtz’s statement reinforces the company’s mission-driven approach: "Our unwavering mission of stopping breaches" remains central even as financial metrics fluctuate.
As the cybersecurity industry continues to expand amid increasing digital threats, CrowdStrike’s performance will be closely watched by investors and analysts alike. The company’s ability to sustain growth, control costs, and meet elevated earnings expectations will be critical to justifying the optimistic price targets and maintaining its strong stock momentum.
In sum, CrowdStrike’s latest quarterly report paints a picture of a company that is growing rapidly but facing short-term financial headwinds. Its strategic initiatives, including workforce optimization and a bold buyback plan, aim to position it for long-term success in a sector where security breaches remain a persistent and costly risk for businesses worldwide.