CrowdStrike raised its full-year revenue forecast on Aug. 26, boosting expectations for crwd stock when it set a new outlook of $5.991 billion to $6.01 billion for the year, Reuters reported.
The raise followed a quarter in which CrowdStrike posted revenue of $1.47 billion, beating analysts’ average estimate of $1.44 billion, and adjusted earnings per share of $0.31, Reuters said.
CrowdStrike also reported annual recurring revenue of $5.84 billion at quarter-end, up 25% year-over-year, and the company said demand for its cloud-native Falcon cybersecurity platform remained strong, Reuters reported.
Shares of the Austin, Texas-based company rose more than 10% in after-hours trading on the news, and CEO George Kurtz was quoted saying, “Every enterprise will run on AI, and securing it is the largest market opportunity in our history,” according to Reuters.
Investors tracking crwd stock have compared the move to other cybersecurity names that have shifted guidance this year; readers may find context in articles on Zscaler stock and Palo Alto Networks stock ahead of their results.
Why it matters: analysts use full-year revenue guidance to model future cash flow and margin expansion for subscription-driven firms. CrowdStrike’s raised outlook and 25% ARR growth feed into that modeling and are likely to shape near-term sentiment around crwd stock.
Precedent: Reuters noted CrowdStrike has raised revenue guidance in prior years after strong quarters, most recently citing earlier instances when demand for its platform pushed forecasts higher, illustrating a pattern that investors watch for this sector.
Sources
- Reuters — reported the Aug. 26 earnings beat, the raised full-year revenue forecast to $5.991 billion–$6.01 billion, Q2 revenue of $1.47 billion, adjusted EPS of $0.31, ARR of $5.84 billion and the CEO quote.
