Key Highlights
- The cybersecurity firm delivered Q4 earnings per share of $1.12, surpassing Wall Street’s $1.10 forecast, while revenue reached $1.31 billion—a 23.3% year-over-year increase
- The company’s Annual Recurring Revenue climbed to $5.25 billion, representing 23.8% year-over-year expansion and marginally exceeding market predictions
- Management projected Q1 CY2026 revenue of $1.36 billion at midpoint, topping consensus analyst forecasts
- Shares climbed to $391.42 on elevated trading volume after earnings were announced, later stabilizing near $393
- Company insiders have aggressively sold shares, disposing of more than 100,000 units valued at approximately $45.7 million over the previous three-month period
CrowdStrike (CRWD) unveiled its fourth quarter CY2025 financial results on March 3, surpassing Wall Street projections for both top-line revenue and bottom-line earnings.
The cybersecurity specialist reported earnings of $1.12 per share, eclipsing the consensus forecast of $1.10. Top-line results reached $1.31 billion compared to analyst expectations of $1.30 billion, marking a 23.3% jump from the year-ago period.
Adjusted operating profit totaled $325.8 million, surpassing the $317.2 million estimate and achieving a 25% operating margin.
CrowdStrike Holdings, Inc., CRWD
The company’s free cash flow margin expanded to 28.8%, a notable improvement from the 24% recorded in the preceding quarter. Operating margin landed at -0.5%, demonstrating substantial progress from the -8.1% figure posted in the comparable quarter last year.
Annual Recurring Revenue achieved $5.25 billion during the quarter, advancing 23.8% year over year. Throughout the trailing four quarters, ARR has expanded at an average annual pace of 22.1%.
Despite outperforming expectations, CrowdStrike continues to show a negative net margin of -6.88% and a return on equity of -2.12%. The company’s price-to-earnings ratio stands at -310.65, underscoring ongoing GAAP-basis losses.
Forward-Looking Projections
For the first quarter of CY2026, executives forecast revenue of $1.36 billion at the midpoint, approximately 0.6% higher than analyst consensus. Full-year FY2027 adjusted earnings per share guidance landed at $4.84 at midpoint, aligning with market expectations.
Wall Street analysts currently anticipate revenue expansion of 21.7% over the upcoming 12 months, representing a slowdown from recent years but still indicating solid underlying demand.
Shares initially jumped $6.56 to reach $391.42 on trading volume exceeding 6.2 million shares, well above the typical average of approximately 3.9 million. The stock eventually stabilized around $393 following the earnings disclosure.
CrowdStrike commands a market capitalization of approximately $98.7 billion. The stock has traded between $298 and $566.90 over the past 52 weeks, with shares currently positioned substantially below the 200-day moving average of $469.55.
Wall Street Sentiment and Trading Activity
The analyst community maintains a generally optimistic outlook. According to MarketBeat, the consensus rating stands at “Moderate Buy” with an average price objective of $520.43. Piper Sandler recently elevated its rating from neutral to overweight, establishing a $520 price target. TD Cowen preserved its buy recommendation while reducing its target from $580 to $480. Among 49 analysts tracking the company, 31 rate it a buy, 15 assign a hold rating, and 3 recommend selling.
Regarding institutional ownership, 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 trading patterns, conversely, paint a contrasting picture. Chief Financial Officer Burt Podbere divested stock valued at more than $3.2 million in early February. President Michael Sentonas sold approximately $5.5 million in shares during late December. Throughout the past three months, company insiders have sold over 100,000 shares totaling roughly $45.7 million, with zero reported insider purchases.
The company’s customer acquisition cost payback period registered at 29 months for the quarter.
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