CrowdStrike Stock Is Falling Today: What's Driving Shares Lower?

CrowdStrike Holdings Inc CRWD shares are trading lower Wednesday on the heels of the company’s mixed first-quarter financial results. Multiple analysts weighed in following the print. Here’s what you need to know.

What Happened: CrowdStrike reported first-quarter revenue of $1.10 billion, missing analyst estimates of $1.11 billion, and first-quarter adjusted earnings of 73 cents per share, beating analyst estimates of 66 cents per share.

Total revenue climbed 20% year-over-year and annual recurring revenue increased 22%. The company generated free cash flow of $279.4 million and ended the period with $4.61 billion in cash and short-term investments.

"We started the fiscal year with record Q1 large deal and MSSP momentum alongside sustained 97% gross retention and consistently strong net retention as the market consolidates on Falcon as its cybersecurity platform of choice for the agentic AI era," said George Kurtz, co-founder, president and CEO of CrowdStrike.

CrowdStrike’s second-quarter guidance appears to be weighing on shares. The company guided for second-quarter revenue between $1.145 billion and $1.152 billion versus estimates of $1.23 billion. CrowdStrike also forecasted adjusted earnings of 82 cents to 84 cents per share versus estimates of 92 cents per share, according to Benzinga Pro.

It’s also worth noting that CrowdStrike stock hit new all-time highs ahead of the print, which likely led to elevated expectations for the cybersecurity company. Analysts appear to be largely optimistic following the company’s quarterly results.

Canaccord Genuity downgraded CrowdStrike from Buy to Hold, but raised the price target from $420 to $475. Meanwhile, analysts at Needham and Rosenblatt maintained Buy ratings and price targets ranging from $515 to $530. Stephens & Co. analyst Todd Weller maintained an Overweight rating and raised the price target from $450 to $540.

CrowdStrike also announced Wednesday morning that it surpassed $1 billion in sales under its partnership with GuidePoint Security.

CRWD Price Action: CrowdStrike shares were down 6.98% at $454.65 at the time of publication Wednesday, according to Benzinga Pro.

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