Key Takeaways
- CrowdStrike delivered Q4 earnings per share of $1.12, surpassing analyst projections by $0.02, while revenue reached $1.31 billion, representing 23.3% year-over-year expansion
- The company’s Annual Recurring Revenue climbed to $5.25 billion, marking 23.8% yearly growth and marginally exceeding Street forecasts
- Management’s Q1 CY2026 revenue outlook of $1.36 billion at midpoint came in modestly ahead of consensus projections
- Shares climbed to $391.42 on elevated trading activity post-earnings, eventually stabilizing near $393
- Executive stock sales continue at significant levels, with company leaders divesting more than 100,000 shares over the last quarter
CrowdStrike (CRWD) unveiled its Q4 CY2025 financial results on March 3, outperforming Wall Street expectations across key metrics.
The cybersecurity leader delivered earnings per share of $1.12, topping the consensus forecast of $1.10. Revenue totaled $1.31 billion compared to anticipated $1.30 billion, marking a robust 23.3% year-over-year climb.
Adjusted operating income reached $325.8 million, exceeding projections of $317.2 million and achieving a 25% margin.
CrowdStrike Holdings, Inc., CRWD
The company’s free cash flow margin expanded to 28.8%, improving from the previous quarter’s 24%. Operating margin registered at -0.5%, demonstrating substantial progress from the -8.1% recorded in the comparable period last year.
Annual Recurring Revenue advanced to $5.25 billion during the quarter, posting 23.8% year-over-year growth. Throughout the trailing four quarters, ARR expansion has averaged 22.1% on an annual basis.
Despite these positive results, CrowdStrike continues to report a negative net margin of -6.88% and negative return on equity of -2.12%. The company’s P/E ratio stands at -310.65, highlighting ongoing GAAP-basis losses.
Forward Guidance and Market Expectations
For the upcoming Q1 CY2026 period, executives projected revenue of $1.36 billion at the midpoint, approximately 0.6% above analyst consensus. The company’s full-year FY2027 adjusted EPS guidance of $4.84 at midpoint aligned with market expectations.
Analysts on the sell-side currently project 21.7% revenue growth over the coming 12 months, representing a slowdown from previous years while still indicating solid market demand.
Shares initially jumped $6.56 to reach $391.42 on trading volume exceeding 6.2 million, notably higher than the typical 3.9 million average. The stock eventually stabilized around $393 following the announcement.
CrowdStrike maintains a market capitalization of approximately $98.7 billion. The stock’s 52-week trading range spans from $298 to $566.90, with current prices significantly below the 200-day moving average of $469.55.
Wall Street Sentiment and Ownership Trends
The analyst community maintains generally favorable views. MarketBeat’s consensus rating sits at “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 sustained its buy recommendation while adjusting its target downward from $580 to $480. Among 49 analysts tracking the security, 31 rate it a buy, 15 recommend hold, and 3 suggest sell.
Regarding institutional ownership, State Street, T. Rowe Price, and Charles Schwab have all increased their positions in recent reporting periods. Institutional investors collectively control 71.16% of outstanding shares.
Insider transactions, conversely, paint a contrasting picture. Chief Financial Officer Burt Podbere disposed of shares valued at more than $3.2 million in early February. President Michael Sentonas liquidated nearly $5.5 million in holdings during late December. Throughout the past three months, company insiders sold over 100,000 units totaling approximately $45.7 million, with zero reported purchases.
The company’s customer acquisition cost payback period registered at 29 months for the quarter.
