CrowdStrike said on Tuesday it expects fiscal 2027 revenue to be higher than Wall Street had forecast, a signal the company sees sustained demand for its artificial intelligence-enabled cybersecurity products.
The company set its fiscal 2027 revenue outlook at $5.87 billion to $5.93 billion, above analysts' average estimate of $5.86 billion, according to data compiled by LSEG. CrowdStrike also provided an annual adjusted earnings-per-share range of $4.78 to $4.90, compared with a consensus estimate of $4.81.
For the first quarter, the firm projected revenue of $1.360 billion to $1.364 billion, above the $1.35 billion estimate, and expected adjusted EPS of $1.06 to $1.07, largely in line with the $1.06 estimate.
The guidance followed a fourth quarter in which revenue rose 23% to $1.31 billion and adjusted EPS of $1.12 topped estimates of $1.10.
Shares of CrowdStrike closed 1.7% higher on the day, though they traded down 0.8% in volatile extended trading. The stock, along with other cybersecurity names, has seen pressure recently as investors weighed the potential implications of Anthropic's Claude Code Security tool, although some analysts have argued the concerns were overstated.
Truist Securities analyst Junaid Siddiqui captured some of the market reaction, saying, "I think people are still digesting numbers. But in this environment, having a software stock trade close to flat post print seems like a good outcome."
CrowdStrike attributed its momentum to ongoing enterprise cloud adoption and the need for modernized security amid a spate of high-profile cyberattacks affecting global companies, including cybersecurity provider F5.
The company disclosed costs related to a Windows outage on July 19, 2024 and related matters widened to $117.7 million in fiscal 2026, up from $60.1 million a year earlier. Those costs, however, narrowed to $16.2 million in the quarter ended January 31, versus $21 million in the same quarter a year earlier.
In January, CrowdStrike said it would acquire identity security startup SGNL for $740 million and Israeli browser runtime security startup Seraphic Security for about $420 million.
The company's updated guidance and results underscore its positioning in AI-powered cybersecurity, while recent market volatility reflects investor focus on competitive dynamics within the sector.
Key details:
- Fiscal 2027 revenue guidance: $5.87 billion to $5.93 billion (consensus $5.86 billion).
- Fiscal 2027 adjusted EPS guidance: $4.78 to $4.90 (consensus $4.81).
- First-quarter revenue guidance: $1.360 billion to $1.364 billion (consensus $1.35 billion); first-quarter adjusted EPS guidance: $1.06 to $1.07 (consensus $1.06).
- Fourth-quarter revenue: $1.31 billion, up 23%; adjusted EPS: $1.12 (consensus $1.10).
- Acquisitions announced in January: SGNL for $740 million and Seraphic Security for about $420 million.