From CNBC: 2025-03-04 19:34:00

CrowdStrike exceeded expectations in Q4 with revenue, adjusted earnings, and net new annual recurring revenue. Fiscal 2026 outlook fell slightly short, causing stock to drop over 9% in after-hours trading. Despite this, revenue in Q4 increased by 25% year over year to $1.06 billion. Adjusted earnings per share rose 8% to $1.03. ARR grew by 23% to $4.24 billion. Remaining performance obligation increased by 41% year-over-year to $6.5 billion. CrowdStrike CEO George Kurtz highlighted the importance of cybersecurity investment in the current threat landscape. Customer retention remains strong, with a gross customer retention rate of 97% and a net dollar-based retention of 112%. The company’s Falcon platform, powered by AI and cloud technology, continues to attract customers. CrowdStrike offered incentive packages to retain customers following a faulty software update in July 2024, resulting in increased adoption of its Falcon Flex offering. The company added over $1 billion in total account Flex deal value in Q4. With strong customer commitment to the Falcon platform, CrowdStrike ended the customer commitment package program. Fiscal 2026 guidance includes total revenue of $4.743 billion to $4.805 billion and adjusted EPS of $3.33 to $3.45, impacted by changes in the long-term projected tax rate. Adjusted operating income is expected to be between $944.2 million and $985.1 million. Fiscal Q1 guidance is slightly below consensus estimates on operating income and adjusted EPS, with a tax headwind impacting earnings. CrowdStrike’s performance demonstrates the importance of cybersecurity investment in today’s digital landscape.



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