5 Wall Street Analysts Discuss CrowdStrike Results, IT Outage Impact by Investing.com

Shares of CrowdStrike (NASDAQ: ) fell in premarket trading Thursday despite reporting strong fiscal second-quarter results as the company cut its full-year guidance following a global outage.

For the quarter ended July 31, CrowdStrike reported adjusted earnings per share of $1.04, beating the LSEG’s consensus estimate of 97 cents. Revenue was $963.9 million, up slightly from $959 million. This represents a 32% year-over-year increase.

The company reported net income of $47 million, or 19 cents per share, up from $8.47 million, or 3 cents per share, in the same quarter last year. Annual recurring revenue (ARR) came in at $3.86 billion, just above the StreetAccount consensus of $3.85 billion.

This is the first earnings report since CrowdStrike encountered a significant problem when it distributed a flawed content configuration update for its Falcon sensor on Microsoft (NASDAQ: ) Windows systems.

The bug caused millions of computers to crash, leading to flight cancellations, delayed package deliveries and postponed medical appointments. Administrators were asked to manually restart affected systems.

In its revised guidance, CrowdStrike projected adjusted net earnings of 80 to 81 cents per share on revenue of $979.2 million to $984.7 million for the third quarter.

For the full fiscal year 2025, the company now expects adjusted earnings per share of $3.61 to $3.65 and revenue of $3.89 billion to $3.90 billion. That’s a downgrade from June’s forecast of $3.93 to $4.03 in adjusted earnings per share and revenue of $3.98 billion to $4.01 billion.

The revised full-year revenue guidance reflects a negative $30 million per quarter impact on subscription revenue due to incentives related to a customer engagement package. The guidance also excludes costs related to disruption, CrowdStrike said.

What analysts said after CrowdStrike’s earnings

UBS: “There were a number of positives in the quarter: Q2 impact was less than expected, muted programs, and the long-term ARR target was reiterated (albeit pushed back by 1 year). While we expect the outlook for 2H net annual recurring revenue (NNARR) to be uncertain, the drawdown program adds complexity to the mechanics of the models for at least two quarters. We leave our conservative ARR assumptions intact.

Oppenheimer: “While we expect the stock to remain limited until investors gain greater clarity on FY26 growth trends and the timing of NNARR re-acceleration, we believe CrowdStrike’s long-term growth opportunity remains intact and we continue to see it as cutting edge cyber security. platform. Adj. estimated for results/guidance and PT decline to $365. Maintain performance.”

Morgan Stanley: “With strong Q2 results and risk outlook for 2H, the focus now shifts to the pace of top line recovery over the next 12-18 months. We see upside for estimates and a potential positive catalyst in the upcoming Sept. 18 Analyst Day and Fal.Con user conference. Stay OW.”

Piper Sandler: “A conservative outlook is building into an unbeatable scenario and is probably the ultimate shoe in our view. Most impressive in Q2 were the large post-incident deals highlighted in key growth areas, Cloud, Identity and SIEM (all up >85% and representing over $1B in ARR). While there will be some consequences, which we believe are appropriately reduced in numbers, the platform proposition remains alive and well.”

RBC Capital Markets: “We see a number of catalysts, including beating lower estimates, SLED/FED in Q3, a potential budget hike in Q4 and acceleration in 2H FY/26 on strong renewals following customer commitment offers. Overall, we believe the company will emerge stronger from the disruption and believe there has been no change in the consolidation opportunity as management continues to see a path to $10 billion in ARR.”