CrowdStrike Shares Are Trading Lower Wednesday: What's Going On?

CrowdStrike Holdings Inc. CRWD shares are falling Wednesday following the release of the company’s third-quarter financial results and analyst changes.

What To Know: CrowdStrike reported third-quarter revenue of $1.01 billion, beating the consensus estimate of $982.36 million and reflecting a 29% year-over-year increase. Adjusted earnings per share came in at 93 cents, beating the estimate of 81 cents.

The company's annual recurring revenue grew 27% year-over-year to $4.02 billion, with $153 million added in net new ARR during the quarter.

Outlook: CrowdStrike issued guidance for the fourth quarter, projecting revenue between $1.029 billion and $1.035 billion, roughly in line with the consensus estimate of $1.03 billion. Adjusted earnings per share are expected to be between 84 cents and 86 cents, matching the 86 cents consensus estimate.

Guidance was roughly in-line with consensus estimates. For fiscal year 2025, CrowdStrike sees revenue in the range of $3.923 billion to $3.931 billion, slightly above estimates of $3.897 billion and sees adjusted EPS guidance to $3.74 to $3.76, above the $3.63 consensus.

CEO George Kurtz emphasized the company's customer retention rate of over 97% and highlighted CrowdStrike's success in expanding relationships with clients impacted by a global IT outage earlier in the year.

Analyst Reactions:

HSBC downgraded the stock from Buy to Hold and set a price target of $347 following the report. Other analysts reactions to the report are as follows:

• Needham: Maintained Buy rating and raised price target from $360 to $420.
• Rosenblatt: Maintained Buy rating with a price target of $385.
• Baird: Maintained Outperform rating and raised price target from $375 to $390.
• WestPark Capital: Reiterated Hold rating.
• B of A Securities: Maintained Buy rating and raised price target from $365 to $400.
• Susquehanna: Maintained Positive rating and raised price target from $310 to $400.
• BMO Capital: Maintained Outperform rating and raised price target from $315 to $380.
• Citigroup: Maintained Buy rating and raised price target from $300 to $400.
• Oppenheimer: Maintained Outperform rating and raised price target from $365 to $410.
• Piper Sandler: Maintained Overweight rating and raised price target from $290 to $375.
• RBC Capital: Maintained Outperform rating and lowered price target from $370 to $365.
• Wells Fargo: Maintained Overweight rating and raised price target from $350 to $400.

CRWD Price Action: CrowdStrike shares were down 6.18% at $341.80 at the time of writing, according to Benzinga Pro.

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