CrowdStrike Shares Hit On Q1 Loss, Weak Q2 Adj. EPS View; Despite FY26 Outlook Raise, $1 Bln Buyback

CrowdStrike

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(RTTNews) - Shares of CrowdStrike Holdings, Inc. declined around 7 percent in the after-hours trading on Tuesday after the cybersecurity technology company reported a loss in its first quarter, compared to prior year's profit, and guided second-quarter earnings below last year.

However, first-quarter revenues climbed, and the firm lifted its fiscal 2026 earnings outlook, but maintained annual revenue view. Further, CrowdStrike's board of directors approved a share repurchase program of up to $1 billion of its stock.

Burt Podbere, CrowdStrike's chief financial officer, said, "We achieved net new ARR and bottom-line results ahead of our expectations and generated record cash flow from operations. Our conviction in net new ARR re-acceleration and margin expansion in the second half of fiscal year 2026 is reinforced by Falcon Flex deal momentum and early Falcon Flex expansions, strong competitive win rates and robust pipeline for the second half of fiscal year 2026."

For the second quarter, the company projects adjusted net income between $209.1 million and $213.8 million or $0.82 and $0.84 per share, on total revenues of $1.145 billion to $1.152 billion.

The Wall Street analysts on average expect the company to report earnings of $0.83 per share on sales of $1.15 billion. Analysts' estimates typically exclude special items.

In its previous year's second quarter, adjusted earnings were $260.8 million or $1.04 per share on revenue of $963.9 million.

For fiscal 2026, CrowdStrike now expects adjusted net income of $878.7 million to $909.7 million or $3.44 to $3.56 per share.

The American cybersecurity technology company previously expected adjusted income between $851.2 million and $883.0 million or $3.33 and $3.45 per share.

Total revenues are still expected between $4.744 billion and $4.806 billion.

The Street is looking for earnings of $3.46 per share on revenues of $4.79 billion for the year.

In fiscal 2025, adjusted net income was $987.6 million or $3.93 per share on total revenue of $3.95 billion.

In its first quarter, net loss attributable to CrowdStrike was $110.21 million, compared to profit of $42.82 million a year ago.

Loss per share was $0.44, compared to income per share of $0.17 in the prior year.

Adjusted net income was $184.7 million, compared to $196.8 million a year ago. Adjusted earnings per share were $0.73, compared to last year's $0.79.

Total revenue, however, grew 20 percent to $1.10 billion from $921.04 million a year earlier. Subscription revenue was $1.05 billion, a 20 percent increase from $872.2 million in fiscal 2025.

Annual Recurring Revenue or ARR grew 22 percent year-over-year to $4.44 billion as of April 30, of which $193.8 million was net new ARR added in the quarter.

On the Nasdaq, CrowdStrike closed Tuesday's regular trading at $488.76, up 2 percent. Following the news, the shares fell 6.5 percent in the extended trading to $457.09.

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