CrowdStrike Stock Sinks 7.6% Pre-Market as Weak FY26 Outlook Offsets Q4 Beat

CrowdStrike Holdings Inc. (NASDAQ: CRWD) shares plummeted 7.6% in pre-market trading on Tuesday, March 4, 2025, following the company's fourth-quarter earnings report. Despite beating revenue estimates, the stock price decline can be attributed to the company's weak fiscal 2026 outlook, which fell short of analysts' expectations.

Q4 Earnings Beat, but Guidance Misses the Mark

CrowdStrike reported fourth-quarter revenue of $1.06 billion, surpassing analysts' estimates of $1.032 billion. The cybersecurity company also reported adjusted earnings of $1.03 per share, beating analyst estimates of 85 cents per share. However, the company's guidance for fiscal 2026 missed the mark, with adjusted net income expected to be between $851.2 million and $883 million or $3.33 to $3.45 per share, compared to the analyst consensus of $1.1 billion, or $4.23 per share (Visible Alpha).

Weak Guidance Overshadows Q4 Beat

The significant decline in CrowdStrike's stock price can be attributed to the company's weak fiscal 2026 outlook, which overshadowed the Q4 earnings beat. Investors were likely disappointed by the company's guidance, as it fell short of analysts' expectations. The company's revenue growth of 25% year-over-year in the fourth quarter was also lower than the 29% growth experienced in the full year 2025.

Key Takeaways and Next Steps

CrowdStrike's Q4 earnings report highlights the importance of focusing on both short-term results and long-term growth prospects. While the company beat revenue estimates in the quarter, its weak fiscal 2026 outlook suggests that investors may be concerned about the company's ability to maintain its growth trajectory. As the company heads into its fiscal 2026, investors will closely monitor its progress and assess whether the weak guidance is a temporary setback or a sign of more significant challenges ahead.



As investors await more clarity on CrowdStrike's fiscal 2026 outlook, they should consider the company's long-term growth prospects and the potential impact of macroeconomic uncertainty on the cybersecurity sector. With a market cap of $96.10 billion and an enterprise value of $92.57 billion, CrowdStrike remains a significant player in the cybersecurity industry. However, the company's high valuation (forward P/E of 112.81) may make it more susceptible to sell-offs when earnings disappoint or guidance is weak.

In conclusion, CrowdStrike's stock price decline following its Q4 earnings report highlights the importance of focusing on both short-term results and long-term growth prospects. While the company beat revenue estimates in the quarter, its weak fiscal 2026 outlook suggests that investors may be concerned about the company's ability to maintain its growth trajectory. As the company heads into its fiscal 2026, investors will closely monitor its progress and assess whether the weak guidance is a temporary setback or a sign of more significant challenges ahead.