CrowdStrike Stock Is Soaring Wednesday: What's Going On?

CrowdStrike Holdings Inc CRWD shares are trading higher Wednesday on the heels of the company’s fourth-quarter financial results. Several analysts also lifted price targets following the print.

• Q4 Revenue: $845.34 million, beat estimates of $839.04 million

• Q4 EPS: 95 cents, beat estimates of 82 cents

Total revenues were up 33% on a year-over-year basis. Annual recurring revenue increased 34% year-over-year. Net cash generated from operations was $347 million. CrowdStrike also generated $283 million in free cash flow during the quarter.

The company ended the quarter with $3.47 billion in cash, equivalents and short-term investments.

“CrowdStrike is cybersecurity's consolidator of choice, innovator of choice, and platform of choice to stop breaches,” said George Kurtz, co-founder, president and CEO of CrowdStrike.

Outlook: CrowdStrike expects first-quarter revenue in the range of $902.2 million to $905.8 million versus estimates of $899.29 million. The company sees fiscal year 2025 revenues to be between $3.925 billion and 3.989 billion versus estimates of $3.05 billion.

CrowdStrike anticipates first-quarter adjusted earnings of 89 cents to 90 cents per share versus estimates of 82 cents per share. The company sees fiscal year 2025 earnings in the range of $3.77 to $3.97 per share versus estimates of $3.75 per share.

CrowdStrike also announced that it has agreed to acquire cloud data runtime security solution company Flow Security. The acquisition is expected to expand CrowdStrike's cloud security presence with data security posture management.

Analyst Changes:

• Jefferies analyst Joseph Gallo maintained CrowdStrike with a Buy and raised the price target from $375 to $400.

• Wells Fargo analyst Andrew Nowinski maintained CrowdStrike with an Overweight and raised the price target from $380 to $435.

• Keybanc analyst Eric Heath maintained CrowdStrike with an Overweight and raised the price target from $375 to $430.

• Barclays analyst Saket Kalia maintained CrowdStrike with an Overweight and raised the price target from $340 to $400.

• HSBC analyst Stephen Bersey maintained CrowdStrike with a Buy and raised the price target from $411 to $412.

• Mizuho analyst Gregg Moskowitz maintained CrowdStrike with a Buy and raised the price target from $360 to $390.

Related Link: CrowdStrike Analysts Boost Their Forecasts Following Strong Earnings

CRWD Price Action: CrowdStrike shares were up 23% at $366 at the time of writing, according to Benzinga Pro.

Photo: Shutterstock.