Key Highlights
- CrowdStrike delivered Q4 earnings per share of $1.12, surpassing the Street’s $1.10 estimate, alongside revenue of $1.31 billion representing 23.3% annual growth
- The cybersecurity provider’s Annual Recurring Revenue climbed to $5.25 billion, marking 23.8% year-over-year expansion and edging past Wall Street projections
- Management’s Q1 CY2026 revenue forecast of $1.36 billion at midpoint topped analyst consensus expectations
- Shares rallied to $391.42 on elevated trading volume after the earnings announcement, later stabilizing near $393
- Executive stock sales continued their trend, with company insiders disposing of more than 100,000 shares over the previous three months
CrowdStrike (CRWD) unveiled its fourth quarter CY2025 financial results on March 3, surpassing Wall Street’s projections for both top-line growth and bottom-line profitability.
The cybersecurity specialist recorded earnings per share of $1.12, outperforming the $1.10 consensus forecast. Top-line revenue reached $1.31 billion compared to analyst expectations of $1.30 billion, reflecting 23.3% growth compared to the year-ago period.
Adjusted operating income totaled $325.8 million, exceeding the $317.2 million estimate and producing a 25% operating margin.
CrowdStrike Holdings, Inc., CRWD
The company’s free cash flow margin expanded to 28.8%, showing meaningful improvement from the previous quarter’s 24%. Operating margin registered at -0.5%, demonstrating substantial progress from the -8.1% recorded in the comparable quarter one year earlier.
Annual Recurring Revenue reached $5.25 billion during the quarter, advancing 23.8% year-over-year. Examining the trailing four quarters, ARR expansion has averaged 22.1% on an annualized basis.
Despite beating expectations, CrowdStrike continues to report a negative net margin of -6.88% alongside a negative return on equity of -2.12%. The company’s P/E ratio stands at -310.65, underscoring its ongoing lack of GAAP profitability.
Forward-Looking Projections
Management provided Q1 CY2026 revenue guidance of $1.36 billion at the midpoint, approximately 0.6% above what analysts had anticipated. The company’s full-year FY2027 adjusted EPS outlook landed at $4.84 at midpoint, matching Wall Street’s consensus.
Sell-side analysts are currently projecting revenue growth of 21.7% over the coming twelve months, representing a moderation from previous periods while still indicating solid underlying demand.
The stock initially climbed $6.56 to reach $391.42 on trading volume exceeding 6.2 million shares, significantly above the typical average of approximately 3.9 million. Following the initial reaction, shares stabilized around the $393 level.
CrowdStrike maintains a market capitalization of approximately $98.7 billion. The stock’s 52-week trading range extends from $298 to $566.90, with current prices substantially below the 200-day moving average of $469.55.
Wall Street Sentiment and Insider Transactions
The analyst community maintains a generally optimistic stance. MarketBeat’s consensus rating indicates “Moderate Buy” with a mean price target of $520.43. Piper Sandler recently elevated its rating from neutral to overweight, establishing a $520 price objective. TD Cowen kept its buy recommendation while reducing its target from $580 down to $480. Among 49 analysts tracking the company, 31 rate it a buy, 15 recommend hold, and 3 advise sell.
Regarding institutional holdings, State Street, T. Rowe Price, and Charles Schwab have all increased their stakes in recent quarters. Institutional investors collectively control 71.16% of outstanding shares.
Insider transactions, conversely, paint a contrasting picture. Chief Financial Officer Burt Podbere divested shares valued at more than $3.2 million in early February. President Michael Sentonas unloaded nearly $5.5 million in stock during late December. Throughout the past three months, company insiders have sold over 100,000 units representing approximately $45.7 million, with zero recorded purchases.
The company’s customer acquisition cost payback period registered at 29 months for the quarter.
