CrowdStrike stock tumbles on disappointing forecast

The cybersecurity provider swung to a fiscal-first-quarter loss.

Jun 4, 2025 - 17:14

CrowdStrike stock tumbles on disappointing forecast

Nothing in computer-related work is more frustrating than getting hacked or your workflow being wrecked by an update.

"My engineers do not have this problem, and now I look like a stupid sales person" was the best nontechnical person's comment I've ever heard while I was working in IT. An update broke her workflow, and she shouldn't need to be an engineer for updates to work.

If you are running a company and an update for a software you rely on to keep your data safe ends up making your employee computers unbootable, what are you going to do once the issue is resolved?

You might start looking elsewhere. After all, changing the cybersecurity software platform you are using is much easier than switching to a different operating system.

In July 2024, CrowdStrike (CRWD) released an update that caused hundreds of millions of computers running on Microsoft (MSFT) Windows to be stuck on a recovery page with the so-called Blue Screen of Death.

The company implemented a commitment plan to reassure its customers. The plan cost about $60 million.

CrowdStrike revenue grows 20% year over year

On June 3 CrowdStrike reported its earnings results for Q1 of fiscal year 2026.

here are the highlights:

Total revenue was $1.1 billion, a 20% increase from $921 million in the first quarter of fiscal 2025.
GAAP net loss attributable to CrowdStrike was $110.2 million, compared with GAAP net income of $42.8 million a year earlier.
GAAP net loss per share was 44 cents against GAAP net income of 17 cents a year earlier.
Net cash generated from operations was a record $384.1 million, compared qith $383.2 million, a year earlier.
Free cash flow was $279.4 million, compared with $322.5 million in Q1 of fiscal 2025.
Cash and equivalents grew to a record $4.61 billion as of April 30.

The company ended its customer commitment packages program in the fiscal fourth quarter, but it still reduced revenue-growth opportunities. And its forecast for second-quarter revenue came in below analysts' estimates, writes Reuters.

At last check CRWD shares were trading off 5.4% above $462,

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CrowdStrike surpasses $1 billion revenue

CrowdStrike reported that it surpassed $1 billion in total revenue, through its partnership with GuidePoint Security.

Demand for the Falcon platform is surging, the company said.

“GuidePoint has been a longstanding and trusted partner in our ecosystem, consistently delivering the expertise and services customers need to unlock the full potential of the Falcon platform,” said Daniel Bernard, chief business officer at CrowdStrike.

“Their focus on Falcon Next-Gen security information and even management and recognition of the transformative value of Falcon Flex have enabled customers to streamline security operations, consolidate costs and stay ahead of evolving threats."