Key Takeaways
- CrowdStrike delivered Q1 FY2027 earnings per share of $1.10, exceeding analyst projections by $0.03
- Quarterly revenue reached $1.39B, surpassing the $1.36B Wall Street forecast
- CRWD shares declined approximately 9% during after-hours trading following the announcement
- The company unveiled a 4-for-1 stock split, with adjusted trading commencing July 2
- Bernstein increased its price target to $413, while Goldman Sachs elevated theirs to $726
Shares of CrowdStrike (CRWD) tumbled roughly 9% during extended trading hours on June 3 following the cybersecurity firm’s release of fiscal Q1 2027 financial results. Prior to the earnings announcement, the stock had settled at $747.61.
CrowdStrike Holdings, Inc., CRWD
The quarterly performance exceeded expectations across both revenue and profitability metrics. Earnings per share reached $1.10, surpassing the anticipated $1.07 from Wall Street analysts. Revenue totaled $1.39 billion, beating the consensus forecast of $1.36 billion while marking a 26% increase compared to the same period last year.
With CRWD having surged 65% year-to-date prior to the earnings release, the after-hours decline may represent investors locking in gains rather than expressing concern over the company’s performance.
Looking ahead to Q2 FY2027, company leadership projected revenue between $1.43B and $1.44B, aligning with the $1.43B analyst consensus. The full-year FY2027 revenue outlook was set at $6.53B to $6.55B.
Management’s full-year EPS forecast of $4.88 to $4.96 slightly exceeded the Street’s expectation of $4.86.
Stock Split Details
CrowdStrike simultaneously revealed plans for a 4-for-1 split of its Class A common stock. Using the $747.61 closing price as a reference, the split would bring shares to approximately $185 each. Split-adjusted trading is scheduled to commence on July 2.
While stock splits don’t alter a company’s fundamental valuation, they can make shares more affordable for individual investors.
Wall Street Response
Bernstein upgraded its CRWD price target to $413 from $368 after reviewing the quarterly results, maintaining its Market Perform rating. The firm highlighted the 1.7% revenue beat at the midpoint and annual recurring revenue that exceeded projections by $6 million.
Goldman Sachs adopted a more optimistic stance. The investment bank raised its price target to $726 from $500 while reaffirming a Buy rating. Goldman emphasized growing client demand for vulnerability management solutions.
CrowdStrike boosted its annual recurring revenue guidance for the full year by $53 million. Bernstein observed that the strengthened demand landscape was partially fueled by corporate requirements surrounding AI security.
CEO George Kurtz emphasized the AI connection in the earnings statement. “In Q1, the worlds of cybersecurity and frontier AI collided: this was the Mythos moment. CrowdStrike is AI security infrastructure, critical to successful AI adoption,” Kurtz stated.
The company also serves as a primary signatory for Project Glasswing and organized Project QuiltWorks in April to collaborate with industry stakeholders on enterprise customer priorities.
Cybersecurity equities experienced weakness earlier this year amid worries about artificial intelligence disruption. The sector has since rebounded, with CRWD climbing approximately 74% during the three-month period leading up to earnings.
Wall Street maintains a consensus Strong Buy rating on the stock based on assessments from 36 analysts, consisting of 28 Buy ratings, 7 Hold ratings, and 1 Sell rating.
The average analyst price target of $576.50 suggested approximately 22% potential downside from the pre-earnings closing price — a metric that will probably be updated following Tuesday’s financial disclosure.
Annual recurring revenue exceeded expectations by nearly $5 million on an organic basis, per Bernstein’s analysis.
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