CrowdStrike (CRWD) Q2 earnings report 2025

CrowdStrike shares slipped 4% in prolonged buying and selling on Wednesday after the cybersecurity software program maker reported sturdy fiscal second-quarter outcomes however diminished full-year steerage within the wake of a world outage.

Right here is how the corporate did in comparison with LSEG consensus:

• Earnings per share: $1.04 adjusted vs. 97 cents anticipated
• Income: $963.9 million vs. $959 million anticipated

CrowdStrike’s income grew 32% yr over yr within the quarter, which ended July 31, in line with a assertion. The corporate recorded internet revenue of $47 million, or 19 cents per share, in comparison with $8.47 million, or 3 cents per share, in the identical quarter a yr in the past.

Annual recurring income was $3.86 billion, simply above the StreetAccount consensus of $3.85 billion.

On July 19, CrowdStrike distributed a flawed content material configuration replace for its Falcon sensor to computer systems working Microsoft Home windows working methods, with the intent to assemble knowledge on new assaults. The error precipitated thousands and thousands of computer systems to crash, resulting in flight cancellations, delayed packaged deliveries and postponed medical appointments. Directors needed to manually reboot affected computer systems.

CEO George Kurtz apologized to purchasers and companions and mentioned the corporate had rolled out a repair. In the meantime, traders have been pushing down CrowdStrike’s share worth. Shareholders have filed go well with towards the corporate, and Delta Air Strains, which cited $380 million in misplaced income and $170 million in prices due to the incident, mentioned it’ll search damages. Vacationers have filed class motion lawsuits towards CrowdStrike as properly.

“All clients are searching for some sort of low cost,” Grey Powell and Trevor Rambo of BTIG, with the equal of a maintain score on CrowdStrike shares, wrote in an Aug. 23 word.

With respect to steerage, CrowdStrike referred to as for adjusted internet earnings of 80 cents to 81 cents per share on $979.2 million to $984.7 million in income.

For the 2025 fiscal yr, CrowdStrike now sees $3.61 to $3.65 in adjusted earnings per share and $3.89 billion to $3.90 billion in income. That’s down from administration’s June forecast for adjusted earnings per share of $3.93 to $4.03 and income between $3.98 billion to $4.01 billion.

The complete-year income steerage features a adverse subscription income influence of $30 million in every quarter {and professional} companies income within the excessive single-digit thousands and thousands of {dollars} for the second half of the fiscal yr due to incentives for a buyer dedication package deal, in line with the assertion. The adjusted steerage excludes prices associated to the outage, CrowdStrike mentioned.

“Because the July nineteenth incident was within the ultimate two weeks of the quarter, when a significant portion of our gross sales sometimes shut, it delayed offers into subsequent quarters,” Kurtz mentioned on a convention name with analysts. “The overwhelming majority of those offers stay in our pipeline.”

Earlier than CrowdStrike issued the earnings report, its inventory was up about 4% this yr, whereas the S&P 500 index has gained 17% throughout that interval.