What you need to know ahead of CrowdStrike’s earnings report

Key recommendations

• CrowdStrike reports fiscal second quarter earnings next Wednesday, August 28.

• Analysts expect the cybersecurity company to report year-over-year revenue and profit growth.

• CrowdStrike will likely provide updates on the impact of last month’s global outage caused by the company’s botched software update.

CrowdStrike (CRWD) will release its fiscal 2025 second-quarter results after the bell next Wednesday, Aug. 28, its first earnings report since a faulty software update it rolled out caused a global outage, investors looking to assess the impact of the incident.

Analysts expect revenue to rise to $957.6 million from $731.63 million a year ago, according to estimates compiled by Visible Alpha. Net income is expected to be $49.42 million, or 20 cents per share, up from the year-ago period.

Key metrics: Impact of disruption on full-year outlook

CrowdStrike may update its revenue guidance for fiscal 2025, giving investors better insight into the near-term impact of July’s global outage on sales.

Citi analysts said CrowdStrike will not emerge “unscathed” from the incident, given the higher discounts, lower negotiating leverage and litigation costs it now faces. However, analysts said they believe the company “can gradually overcome the inevitable headwinds” in the long term.

Analysts expect fiscal 2025 revenue forecasts to be around $3.96 billion, according to consensus estimates compiled by Visible Alpha, which would be slightly below the low end of the company’s previous guidance of between $3.98 billion and $3.98 billion. 4.01 billion dollars, issued at the beginning of the year. June before the global outage.

Business Attention: Post-Disruption Litigation Efforts

CrowdStrike could face legal action from customers affected by the outage, with some estimates suggesting it could cost affected companies several billion dollars in losses.

Delta Air Lines (DAL), who said the incident cost the airline at least $500 million, threatened legal action against CrowdStrike. However, cybersecurity company and Microsoft (MSFT) disputed Delta’s claims about how the events unfolded.

CrowdStrike may provide updates on potential litigation and its expectations for legal costs when it reports earnings on Aug. 28.

The story continues

CrowdStrike shares have gained about 7% since the start of the year, to $273.21 at Wednesday’s close.

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