Core Insights - CrowdStrike Holdings, Inc. (CRWD) is set to announce its fiscal 2026 second-quarter earnings on August 27, with strong demand for security solutions noted on Wall Street [1] - The company has faced downward pressure on its stock due to disappointing revenue guidance for the second quarter, making the upcoming earnings report critical for its stock performance [2] Revenue Performance - For the fiscal first quarter, CrowdStrike reported a revenue of $1.10 billion, reflecting a year-over-year growth of 20%, which is lower than the 29% growth for the full fiscal year 2025 [3] - The anticipated revenue for the second quarter is projected to be between $1.14 billion and $1.15 billion, indicating a 19% year-over-year growth, which is a slowdown compared to the first quarter [4] Cash Flow and Valuation - Free cash flow decreased to $279.4 million in the fiscal first quarter from $322.5 million in the same period last year, attributed to $61 million in expenses from a platform outage [5] - CrowdStrike's forward price-to-sales (P/S) ratio is 21.9, significantly higher than the Security industry average of 13.7, suggesting caution for new investors [6] Competitive Landscape - The company faces pricing pressure from competitors like Microsoft Corporation (MSFT), which offers endpoint security as part of its Microsoft 365 E5 package, complicating CrowdStrike's market position [7] Long-term Outlook - CrowdStrike's annual recurring revenue (ARR) reached a record $4.4 billion in the fiscal first quarter, marking a 22% increase year-over-year, with management targeting $10 billion by fiscal 2031, representing a 127% increase from current levels [9][11] - The projected addressable market for CrowdStrike is $116 billion, indicating significant growth potential in the coming years [12]

Wall Street is anxious to hear about megacap Nvidia's (NVDA) latest quarter, with AI chip sales and unusual deals with the U.S. government in focus, but the semiconductor giant is not the only notable name hitting up the earnings confessional this week. In fact, cybersecurity firm Crowdstrike Holdings Inc (NASDAQ:CRWD) will report second-quarter results after the close on Wednesday, Aug. 27.CRWD has been on a path lower since its July 3, record high of $517.98, with news of Alphabet's (GOOGL) divestment and ...

Core Insights - CrowdStrike is set to release its earnings on August 27, 2025, and historical stock behavior around earnings announcements can provide insights for traders [2] Earnings Performance - Over the past five years, CrowdStrike's one-day stock movement post-earnings has been evenly split, with 50% of instances resulting in a median gain of 9.8% and the other 50% resulting in a median decline of -5.6% [3][11] - Analysts expect earnings of $0.83 per share on revenue of $1.15 billion for the latest quarter, compared to $1.04 per share on revenue of $964 million a year ago [5] Market Position and Growth - CrowdStrike's market capitalization is currently at $104 billion, with $4.1 billion in revenue over the last twelve months, but the company has not been operationally profitable, reporting operating losses of $252 million and a net loss of $172 million [5] - Since January 2021, CrowdStrike's stock has increased approximately 100%, rising from around $210 to $420, significantly outperforming the S&P 500's 70% increase during the same period [4] Trading Strategies - Traders can utilize historical odds to inform pre-earnings positioning and examine immediate reactions to guide follow-on trades [7] - A lower-risk tactic involves studying correlations between short-term and medium-term returns post-earnings to inform trading strategies [9]

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Core Insights - CrowdStrike (CRWD) is set to report its second-quarter fiscal 2026 results on August 27, 2025, with anticipated revenues between $1.14 billion and $1.15 billion, reflecting a year-over-year growth of 19.2% [1][8] - The expected non-GAAP earnings per share for the second quarter is between 82 cents and 84 cents, with a consensus estimate of 83 cents, indicating a year-over-year decline of 20.2% [2][8] - CrowdStrike's earnings have consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 13.2% [3] Revenue and Earnings Expectations - The Zacks Consensus Estimate for CrowdStrike's fiscal second-quarter revenues is pegged at $1.15 billion, indicating a year-over-year growth of 19.2% [1] - The expected non-GAAP earnings per share for the second quarter is between 82 cents and 84 cents, with a consensus estimate of 83 cents, indicating a year-over-year decline of 20.2% [2] Growth Drivers - The demand for CrowdStrike's cybersecurity products is expected to benefit from the increasing number of cyber threats and breaches, leading to greater security needs [6] - The Falcon Flex subscription model is a significant growth driver, with a total deal value of accounts adopting Falcon Flex reaching $3.2 billion, representing a 31% sequential growth and over six times year-over-year growth [7][8] - The partnership with Amazon Web Services (AWS) enhances CrowdStrike's product availability and co-selling opportunities, contributing positively to earnings [9][10] Cost Considerations - High Research & Development (R&D) and Sales & Marketing (S&M) costs are impacting CrowdStrike's profitability outlook, with R&D expenses increasing 12-fold and S&M expenses nearly ninefold over the last six fiscal years [19][20] Stock Performance and Valuation - Year-to-date, CrowdStrike shares have increased by 21.1%, outperforming the Zacks Security industry, which has returned 8.2% [12] - CrowdStrike is trading at a forward 12-month price-to-sales (P/S) ratio of 19.54X, compared to the industry's 12.02X, indicating a premium valuation [15][17] Investment Considerations - The Falcon Flex subscription model is a key driver for new customer acquisition, with significant deals secured in the last quarter, indicating strong enterprise demand [18] - Despite the potential for long-term benefits from increased investments, rising costs and a premium valuation suggest a cautious approach for investors [20]

Core Viewpoint - Analysts forecast a decline in CrowdStrike Holdings' earnings per share (EPS) while expecting revenue growth in the upcoming quarterly report [1]. Earnings Estimates - CrowdStrike is expected to report quarterly earnings of $0.83 per share, reflecting a year-over-year decline of 20.2% [1]. - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [2]. Revenue Projections - Anticipated revenues for the quarter are $1.15 billion, representing a 19.2% increase compared to the same quarter last year [1]. - Analysts predict 'Revenue- Subscription' to be $1.10 billion, indicating a 19.5% year-over-year change [5]. - The estimate for 'Revenue- Professional services' is $52.16 million, suggesting a 14.3% increase year over year [5]. Key Metrics - The 'Annual recurring revenue (ARR)' is projected to reach $4,640.75 million, up from $3,864.51 million in the same quarter last year [5]. - Analysts estimate 'Remaining Performance Obligations (RPO)' at $6.43 billion, compared to $4.90 billion in the same quarter of the previous year [6]. - 'Non-GAAP subscription gross profit' is expected to be $878.44 million, up from $740.47 million in the same quarter last year [6]. - 'Non-GAAP professional services gross profit' is forecasted at $18.24 million, compared to $15.47 million in the same quarter last year [7]. - 'GAAP professional services gross profit' is projected to reach $10.48 million, up from $8.12 million in the same quarter last year [7]. - 'GAAP subscription gross profit' is expected to be $853.61 million, contrasting with the year-ago figure of $718.35 million [8]. Stock Performance - CrowdStrike shares have decreased by 10.4% over the past month, while the Zacks S&P 500 composite has increased by 1.1% [8]. - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [8].

Core Viewpoint - CrowdStrike Holding Inc. (NASDAQ: CRWD) stock has declined approximately 19% since its all-time high in early June, approaching correction territory ahead of its earnings report on August 27 [1][2] Company Overview - The recent stock decline is attributed to profit-taking as many investors consider the stock overvalued, despite the strong performance of the cybersecurity sector [2] - CrowdStrike is experiencing a broader sell-off in technology stocks, indicating that the stock's performance is not solely company-specific [3] Strategic Expansion - CrowdStrike's expansion into identity protection through its Falcon platform is a strategic move aimed at growth beyond its core endpoint security business [4] - The company launched Falcon Next-Gen Identity Security in June 2024, targeting the rapidly growing area of user credential and access protection, which is a significant cause of breaches today [4] Market Potential - CrowdStrike forecasts a $10 billion total addressable market for identity protection, although it does not provide detailed revenue breakdowns for this segment [5] - The focus remains on total annual recurring revenue (ARR) growth and platform adoption as key metrics for assessing the company's performance [6] Growth Indicators - Identity security is still in the early adoption stage, serving as an incremental growth lever that enhances the overall platform and creates cross-selling opportunities [7] - The company reported a strong 22% year-over-year growth in ending ARR, but also an 8% year-over-year decline in net new ARR, indicating mixed signals regarding growth sustainability [9] Customer Adoption Trends - A rising number of multi-module customers serves as a proxy for platform stickiness and adoption, with 48% of customers using six or more modules [11] - Anecdotal evidence or case studies regarding Falcon Identity Security adoption can provide insights into its growth trajectory [10] Stock Performance and Forecast - CrowdStrike stock is currently trading around $415, below its 50-day moving average of $467, indicating a bearish trend [12] - Analysts have a 12-month stock price forecast of $460.81, suggesting an 11.29% upside potential, with a Moderate Buy rating based on 46 analyst ratings [8]

Core Viewpoint - CrowdStrike has experienced a significant stock price increase of 57% year-to-date, driven by strong business performance and robust demand for modern security solutions [1] - However, the stock's recent sell-off has reduced this gain to approximately 20% since early July, primarily due to disappointing revenue guidance for the fiscal second quarter [2][4] Financial Performance - In the first quarter of fiscal 2026, CrowdStrike reported revenue growth of 20% year-over-year, totaling $1.10 billion, which is below the 29% growth achieved in fiscal 2025 [6] - Subscription revenue increased by 20% to $1.05 billion, while trailing-12-month recurring revenue (ARR) reached $4.44 billion, up 22% from the previous year [6] - Free cash flow decreased to $279.4 million from $322.5 million in the same period last year, impacted by $61 million in expenses from a platform outage [7] Guidance and Valuation - For fiscal Q2, CrowdStrike projected revenue between $1.14 billion and $1.15 billion, indicating a midpoint growth of about 19%, which is slower than the previous quarter's growth [7] - The stock is currently trading at over 100 times forward earnings and about 25 times sales, suggesting a high valuation that requires sustained top-line growth and increasing free cash flow to justify [9] Competitive Landscape - Competition from companies like Microsoft poses a risk to CrowdStrike's market position, as Microsoft bundles advanced security solutions with its Microsoft 365 E5 offerings, potentially reducing the incremental cost for customers [10] Investment Considerations - Despite being a leader in the cybersecurity space with a strong platform, the current stock price reflects high expectations for flawless execution, making it vulnerable to any disappointments in performance or guidance [11] - With upcoming earnings on August 27, the risk-reward scenario appears unfavorable if management fails to demonstrate clear growth reacceleration [12]

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Core Insights - CrowdStrike (CRWD) is expanding its focus to secure the use of artificial intelligence (AI) in enterprises, addressing new risks associated with AI agents in business operations [1][2] Group 1: Company Strategy and Innovations - CrowdStrike views the security of AI agents and systems as a significant growth opportunity, launching initiatives to enhance its offerings in this area [2] - The company has expanded Falcon Shield to secure AI agents developed with OpenAI's ChatGPT Enterprise and Codex, enabling organizations to monitor AI activities and mitigate risks [2][10] - A new AI detection engine, Signal, has been introduced to identify unusual patterns in customer environments, aiming to catch threats that traditional systems may overlook [3][10] - CrowdStrike has also enhanced its AI Security Services with new offerings, including AI Systems Security Assessment and AI for SecOps Readiness, to help organizations assess AI risks and prepare security teams for safe AI integration [4][10] Group 2: Market Position and Competitors - As AI adoption increases, CrowdStrike's strategy of expanding its product portfolio and focusing on platform innovation is expected to drive revenue growth, with a Zacks Consensus Estimate of $4.78 billion for fiscal 2026, reflecting a year-over-year growth of 20.9% [5] - Competitors like Palo Alto Networks (PANW) and SentinelOne (S) are also expanding their platforms and innovating with AI, with PANW reporting a 32% year-over-year increase in its Next-Gen Security annual recurring revenue [6] - SentinelOne achieved a 24% year-over-year growth in its annual recurring revenue, driven by the adoption of its AI-first Singularity platform [7] Group 3: Financial Performance and Valuation - CrowdStrike's shares have increased by 22.4% year to date, outperforming the Security industry's growth of 7.4% [8] - The company trades at a forward price-to-sales ratio of 19.53X, significantly higher than the industry's average of 11.96X [11] - The Zacks Consensus Estimate for CrowdStrike's fiscal 2026 earnings indicates a year-over-year decline of 10.9%, while fiscal 2027 earnings are expected to grow by 34.7% [14]