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CrowdStrike Holdings 2026 Q1 Earnings Misses Targets as Net Income Drops 339.9%
Generated by AI AgentAinvest Earnings Report Digest
Tuesday, Jun 3, 2025 11:21 pm ET2min read
CrowdStrike Holdings (CRWD), ranking 111th by market capitalization, reported its fiscal 2026 Q1 earnings on June 3rd, 2025. The cybersecurity giant missed analysts' expectations with a net loss of $0.44 per share compared to an anticipated positive EPS. The guidance for Q2 FY 2026 reflects a cautious outlook, with projected revenue slightly below analyst consensus. Despite the disappointing results, the company remains optimistic about its innovative Falcon model and AI-driven platform, which may bolster future growth.
Revenue
CrowdStrike Holdings' revenue rose by 19.8% to reach $1.10 billion in Q1 2026, up from $921.04 million in Q1 2025. The subscription segment significantly contributed $1.05 billion, while professional services added $52.67 million, culminating in the total revenue of $1.10 billion.
Earnings/Net Income
CrowdStrike Holdings reported a net loss of $0.44 per share in Q1 2026, shifting from a profit of $0.18 per share in Q1 2025, marking a negative change of 344.4%. The net loss reached $110.99 million, compared to a net income of $46.26 million in the previous year. These figures indicate a challenging EPS performance.
Price Action
The stock price of edged up 1.66% during the latest trading day, climbed 3.50% over the full trading week, and jumped 13.17% month-to-date.
Post-Earnings Price Action Review
The strategy of acquiring CrowdStrike Holdings (CRWD) shares post-revenue drop on the financial report release date and holding for 30 days has shown impressive results over the past three years. It delivered a remarkable return of 157.49%, significantly surpassing the benchmark return of 38.41%, with excess gains of 119.07% relative to the benchmark. The strategy's compound annual growth rate (CAGR) stood at 37.47%, reflecting strong compounding effectiveness. Despite the solid performance, the strategy's Sharpe ratio remained relatively low at 0.71, indicating moderate risk-adjusted returns. The maximum drawdown was -57.83%, paired with volatility at 52.81%, suggesting considerable risk involved. While the strategy demonstrated strong absolute performance, it came with notable volatility and risk.
CEO Commentary
George R. Kurtz, Co-Founder, President, CEO & Director of CrowdStrike Holdings, expressed strong confidence in the company's performance, highlighting that Q1 began from a "position of strength" with accelerated demand through innovation and increased win rates. He noted significant achievements such as a $194 million net new ARR and a total ending ARR surpassing $4.4 billion. Kurtz emphasized the transformative impact of the Falcon Flex model, which has accelerated platform adoption and driven customer spend, stating, "Flex accelerates what would have taken years of module sales cycles into rapid platform transformations." He conveyed optimism regarding future growth, asserting, "CrowdStrike is best positioned to protect the workloads, identities, data, and infrastructure for the AI age."
Guidance
For Q2 FY 2026, CrowdStrike expects total revenue to range from $1,144.7 million to $1,151.6 million, reflecting a year-over-year growth rate of 19%. Non-GAAP income from operations is anticipated between $226.9 million and $233.1 million, with diluted non-GAAP net income per share estimated at $0.82 to $0.84. For the full fiscal year 2026, the company forecasts total revenue in the range of $4,743.5 million to $4,805.5 million, indicating a growth rate of 20% to 22% over the prior fiscal year.
Additional News
CrowdStrike Holdings recently announced a $1 billion share buyback program, demonstrating confidence in its long-term value amidst workforce reductions. The company plans to streamline operations by cutting 500 jobs, approximately 5% of its global workforce, to enhance margins. Additionally, CrowdStrike has expanded its cybersecurity startup accelerator in partnership with AWS and NVIDIA, aiming to support the next generation of global cloud security companies. These strategic moves reflect CrowdStrike's commitment to strengthening its market position and driving innovation in the cybersecurity space.
Revenue
CrowdStrike Holdings' revenue rose by 19.8% to reach $1.10 billion in Q1 2026, up from $921.04 million in Q1 2025. The subscription segment significantly contributed $1.05 billion, while professional services added $52.67 million, culminating in the total revenue of $1.10 billion.
Earnings/Net Income
CrowdStrike Holdings reported a net loss of $0.44 per share in Q1 2026, shifting from a profit of $0.18 per share in Q1 2025, marking a negative change of 344.4%. The net loss reached $110.99 million, compared to a net income of $46.26 million in the previous year. These figures indicate a challenging EPS performance.
Price Action
The stock price of edged up 1.66% during the latest trading day, climbed 3.50% over the full trading week, and jumped 13.17% month-to-date.
Post-Earnings Price Action Review
The strategy of acquiring CrowdStrike Holdings (CRWD) shares post-revenue drop on the financial report release date and holding for 30 days has shown impressive results over the past three years. It delivered a remarkable return of 157.49%, significantly surpassing the benchmark return of 38.41%, with excess gains of 119.07% relative to the benchmark. The strategy's compound annual growth rate (CAGR) stood at 37.47%, reflecting strong compounding effectiveness. Despite the solid performance, the strategy's Sharpe ratio remained relatively low at 0.71, indicating moderate risk-adjusted returns. The maximum drawdown was -57.83%, paired with volatility at 52.81%, suggesting considerable risk involved. While the strategy demonstrated strong absolute performance, it came with notable volatility and risk.
CEO Commentary
George R. Kurtz, Co-Founder, President, CEO & Director of CrowdStrike Holdings, expressed strong confidence in the company's performance, highlighting that Q1 began from a "position of strength" with accelerated demand through innovation and increased win rates. He noted significant achievements such as a $194 million net new ARR and a total ending ARR surpassing $4.4 billion. Kurtz emphasized the transformative impact of the Falcon Flex model, which has accelerated platform adoption and driven customer spend, stating, "Flex accelerates what would have taken years of module sales cycles into rapid platform transformations." He conveyed optimism regarding future growth, asserting, "CrowdStrike is best positioned to protect the workloads, identities, data, and infrastructure for the AI age."
Guidance
For Q2 FY 2026, CrowdStrike expects total revenue to range from $1,144.7 million to $1,151.6 million, reflecting a year-over-year growth rate of 19%. Non-GAAP income from operations is anticipated between $226.9 million and $233.1 million, with diluted non-GAAP net income per share estimated at $0.82 to $0.84. For the full fiscal year 2026, the company forecasts total revenue in the range of $4,743.5 million to $4,805.5 million, indicating a growth rate of 20% to 22% over the prior fiscal year.
Additional News
CrowdStrike Holdings recently announced a $1 billion share buyback program, demonstrating confidence in its long-term value amidst workforce reductions. The company plans to streamline operations by cutting 500 jobs, approximately 5% of its global workforce, to enhance margins. Additionally, CrowdStrike has expanded its cybersecurity startup accelerator in partnership with AWS and NVIDIA, aiming to support the next generation of global cloud security companies. These strategic moves reflect CrowdStrike's commitment to strengthening its market position and driving innovation in the cybersecurity space.
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