From CNBC: 2025-03-05 09:53:33

CrowdStrike shares fell 10% after weak earnings guidance due to a global IT outage in July. First-quarter earnings estimate is 64-66 cents per share, below the Factset average of 95 cents. Full-year earnings expected at $3.33-$3.45 per share, missing the $4.42 estimate. Net loss was $92.3 billion with $21 million in incident-related expenses and $49.9 million in tax expenses.

The July IT outage will cost CrowdStrike an additional $73 million in expenses for the first quarter and $43 million in deal packages. Free cash flow margins expected to return to 30% or more in fiscal year 2027. Wall Street anticipates a pickup in net retention rate in the new fiscal year, despite conservative FY26 guidance.

CrowdStrike’s disappointing guidance overshadowed better-than-expected fourth-quarter results, with earnings of $1.03 per share on $1.06 billion in revenue. CEO George Kurtz called the company a “comeback story” on a conference call, highlighting strong customer engagement and market opportunity.



Read more at CNBC:: CrowdStrike slumps 10% on weak earnings outlook, outage costs