After the publication of CrowdStrike's quarterly results, the subsequent market reaction was mixed. On one side, some fundamental parameters exceeded Wall Street's expectations, but on the other side, it revealed certain indicators of financial health that raised uncertainty. In addition, in terms of performance in the first quarter, management expressed positive expectations for the period ahead, but ultimately the share price fell, recreating potential buying opportunities.*
Costs associated with doing business
On a positive note, we aligned with analysts in terms of revenue, which climbed up to $1.10 billion. However, the value of the net loss caused concern among investors, as it fell to the level of USD 110.2 million. For an ordinary disinterested person, this may only be expressed by a number in the financial statements, but for the investor it is a space for a thorough analysis of the reasons, which can then help determine whether it is only something short-term that the company will manage to manage or something fundamentally dangerous in the long term.
To a large extent, these were costs associated with last year's system outage during the summer, but some of the money was also spent on investments in technological development, precisely with the aim of reducing potential risks and ensuring stability. This means that the company is taking the situation very seriously, which could reassure investors after the reported net loss.
Expectations for the future?
As for the outlook for the next quarter, CrowdStrike expects adjusted earnings per share in the range of 82 to 84 cents on revenue volume of $1.14 billion to $1.15 billion, beating Wall Street's expectations, as analysts there have defined a consensus of 81 cents. [1]
Subsequently, for the entire fiscal year, according to CrowdStrike's management, adjusted earnings per share can be expected in the range of $3.44 to $3.56, with revenues of $4.74 billion to $4.81 billion. [2]
Management trust and rationalization
In addition, CrowdStrike's current strategy includes a $1 billion share buyback program, which, according to Georg Kurtz, CEO, reflects confidence in the company's future. In addition, 500 redundancies were also announced, representing a total of around 5% of the workforce. On the contrary, this step is a response to the need to optimize the business process and increase efficiency.
Long-term vision
Long-term investors were dubious about the words of CFO Burt Podbere, who indicated that they expect free flow of funds with a margin of over 30% by 2027, which would understandably significantly strengthen the company's financial position and allow for further strategic investments.[ 3]
Investors who have long believed in this cybersecurity giant and perceive the company's ability to address current risks effectively have seen an increase in value of this stock by more than 40% since the beginning of the year, so it will be very interesting to follow the development in the future.*
CrowdStrike's share price performance over the past five years*
* Past performance is not a guarantee of future results.
[1,2,3] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which is subject to change. Such statements are not a guarantee of future performance. They involve risks and other uncertainties that are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
Resources:
https://www.cnbc.com/2025/06/03/crowdstrike-crwd-q1-earnings-report-2026.html
