TLDR
- The cybersecurity firm delivered Q4 earnings per share of $1.12, surpassing Wall Street’s $1.10 forecast, while revenue reached $1.31 billion, marking a 23.3% year-over-year jump
- The company’s Annual Recurring Revenue climbed to $5.25 billion, representing 23.8% year-over-year expansion and marginally exceeding analyst projections
- Management’s Q1 CY2026 revenue forecast of $1.36 billion at midpoint came in modestly ahead of Street consensus
- Shares climbed to $391.42 on heightened trading activity after the results were announced, later stabilizing near $393
- Company insiders have engaged in substantial selling activity, divesting more than 100,000 shares over the preceding three-month period
CrowdStrike (CRWD) unveiled its fourth quarter CY2025 financial results on March 3, delivering performance that exceeded analyst projections across key metrics.
The cybersecurity platform provider reported earnings per share of $1.12, topping the Street’s $1.10 consensus. Total revenue landed at $1.31 billion compared to expectations of $1.30 billion, reflecting robust 23.3% year-over-year growth.
Adjusted operating profit reached $325.8 million, eclipsing the $317.2 million forecast and translating to a 25% margin.
CrowdStrike Holdings, Inc., CRWD
The company’s free cash flow margin expanded to 28.8%, up substantially from 24% in the preceding quarter. Operating margin registered at -0.5%, showing meaningful improvement versus the -8.1% recorded in the year-ago period.
Annual Recurring Revenue climbed to $5.25 billion during the quarter, expanding 23.8% compared to the prior year. Looking at the trailing twelve-month period, ARR growth has averaged 22.1% on an annualized basis.
Despite these positive results, CrowdStrike continues to operate with a negative net margin of -6.88% and negative return on equity of -2.12%. The price-to-earnings multiple stands at -310.65, underscoring the firm’s ongoing GAAP-basis losses.
Guidance and Outlook
Looking ahead to Q1 CY2026, the company projected revenue of $1.36 billion at the midpoint, approximately 0.6% higher than analyst forecasts. Full-year FY2027 adjusted earnings per share guidance of $4.84 at midpoint aligned with Wall Street estimates.
Sell-side analysts are currently modeling 21.7% revenue growth over the coming twelve months, representing a moderation from previous periods while still indicating robust market demand.
Shares initially jumped $6.56 to reach $391.42 on elevated trading volume exceeding 6.2 million shares, well above the typical 3.9 million average. The stock later consolidated around $393 following the earnings disclosure.
CrowdStrike commands a market capitalization of approximately $98.7 billion. The stock’s 52-week trading range spans $298 to $566.90, with current levels trading significantly beneath its 200-day moving average of $469.55.
Analyst Views and Insider Activity
Wall Street sentiment remains constructive overall. MarketBeat’s aggregated view shows a “Moderate Buy” consensus with a mean price target of $520.43. Piper Sandler recently elevated its stance from neutral to overweight, establishing a $520 price objective. TD Cowen kept its buy recommendation but reduced its target from $580 down to $480. Among 49 analysts tracking the name, 31 rate it a buy, 15 assign a hold rating, and 3 recommend selling.
Regarding institutional positioning, State Street, T. Rowe Price, and Charles Schwab have all increased their stakes in recent reporting periods. Institutional shareholders collectively control 71.16% of outstanding shares.
Insider transactions, 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 liquidated approximately $5.5 million worth in late December. During the past ninety days, company insiders have sold in excess of 100,000 units totaling roughly $45.7 million, with zero reported insider purchases.
The firm’s customer acquisition cost payback period registered at 29 months for the quarter.
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