CrowdStrike Shares Drop Following Weak Earnings Guidance

Despite beating Q4 expectations, the cybersecurity firm issued lower-than-expected forecasts, citing ongoing costs from last year's IT outage.

CrowdStrike reported Q4 revenue of $1.06 billion and adjusted earnings of $1.03 per share, both exceeding analyst expectations.
The company issued disappointing guidance for Q1 and fiscal year 2026, with earnings per share projections significantly below consensus estimates.
Costs related to the July 2024 IT outage, including customer compensation and operational disruptions, continue to impact financial performance.
Investors reacted negatively to the guidance, with shares dropping over 10% following the announcement, marking the worst single-day decline since the outage.
Analysts remain mixed on the stock, noting strong fundamentals and AI-driven cybersecurity offerings but cautioning about near-term headwinds.