CrowdStrike Q1 Revenue Expected 20.5% Gain, EPS to Drop 29.0%

CrowdStrike, a leading cybersecurity firm, is scheduled to release its first-quarter financial report on June 3, following the close of the U.S. stock market. Analysts broadly expect the company's Q1 revenue to hit $1.11 billion, reflecting a 20.5% year-over-year increase. However, the anticipated earnings per share (EPS) of $0.66 indicates a 29.0% decline from the same period last year.

CrowdStrike's performance in the third and fourth quarters of its 2025 fiscal year surpassed market expectations. However, the company's forward guidance has been disappointing. For example, in its March 2025 fiscal fourth-quarter report, CrowdStrike reported a 25% year-over-year revenue increase to $1.06 billion, exceeding analysts' average estimate of $1.03 billion. Nevertheless, the company projected adjusted EPS for the first quarter of the 2026 fiscal year to be between $0.64 and $0.66, well below the consensus estimate of $0.96.

In early May, CrowdStrike reaffirmed its revenue guidance for the 2026 fiscal year, projecting it to be between $4.74 billion and $4.81 billion. The company also reiterated its adjusted full-year EPS forecast of between $3.33 and $3.45. Furthermore, CrowdStrike announced plans to lay off 500 employees, approximately 5% of its total workforce, as part of its efforts to streamline operations and enhance efficiency.

Despite the underwhelming forward guidance, there are positive indicators for CrowdStrike. The recent upward revision of the company's target price by an investment firm reflects the growing momentum in the cybersecurity platform sector. The firm's latest market research indicates that CrowdStrike's performance has been robust, with a positive outlook and strong momentum expected to continue over the next year. This suggests that while the company faces challenges, it also has the potential for growth and resilience in the competitive cybersecurity market.