Cybersecurity firm CrowdStrike Holdings (CRWD, Financial) reported third-quarter earnings that surpassed expectations. The company achieved an adjusted earnings per share of $0.93 and revenue of $1.01 billion, beating FactSet's estimates of $0.81 per share and $983 million in revenue.
The strong performance came despite the impact of a global technical glitch on July 19, which affected IT systems across various industries, including those running Microsoft Windows. This incident had a notable effect on sales and performance. CFO Burt Podbere highlighted disciplined financial management and focused execution as key factors driving growth.
CEO George Kurtz mentioned that the glitch occurred during a critical sales period at the end of the second quarter, causing many transactions to be delayed to subsequent quarters. Analysts have differing views on CrowdStrike's recovery. Truist Securities analyst Joel Fishbein maintained a "Buy" rating with a $375 target, focusing on the completion of delayed deals and the glitch's long-term impact on the business model.
Conversely, BTIG analyst Gray Powell expressed concerns about potential delays in attracting new customers and existing clients demanding larger discounts during renewals, rating the stock as "Neutral" without a target price.
Despite these concerns, most Wall Street analysts remain optimistic about CrowdStrike's future. According to FactSet, out of 50 analysts surveyed, 40 rated the stock as "Buy," nine as "Hold," and only one as "Sell." Cantor Fitzgerald analyst Jonathan Ruykhaver expects the company to recover its annual recurring revenue (ARR) and revenue in the second half of the fiscal year 2026, maintaining an "Overweight" rating with a $370 target.
As of Monday's close, CrowdStrike shares were at $363.68, up 42% year-to-date, outperforming the S&P 500's 26% rise. The stock saw a slight increase to $363.97.
