CrowdStrike Plunges 6.52% on Missed Earnings Forecast

CrowdStrike Holdings, a prominent cybersecurity firm, experienced a significant drop of 6.52% in pre-market trading on June 4, 2025. This decline came after the company released its first-quarter financial results, which, while meeting revenue expectations, fell short of market forecasts for the second quarter.

The company reported revenue of $1.1 billion for the first quarter, a nearly 20% year-over-year increase, but its adjusted earnings per share of $0.73 missed the market's average estimate of $0.81. The company's guidance for the second quarter, with revenue expected to be between $1.14 billion and $1.15 billion and adjusted earnings per share between $0.82 and $0.84, also fell short of analyst expectations of $1.16 billion and $0.81, respectively.

CrowdStrike's stock has been under pressure due to several factors, including increased operational costs and the aftermath of a major software outage last summer. The company has also announced plans to lay off approximately 500 employees, aiming to achieve an annual recurring revenue target of $1 billion. Additionally, the company is facing investigations from U.S. prosecutors and regulatory bodies regarding a $32 million deal with technology distributor Carahsoft Technology Corp.

Despite these challenges, CrowdStrike has maintained its full-year earnings guidance, projecting adjusted earnings per share between $3.44 and $3.56 and revenue between $4.74 billion and $4.81 billion. The company's efforts to streamline operations and address regulatory concerns will be closely watched by investors in the coming quarters.