CrowdStrike Q1: Mixed Results, Guidance Misses Expectations

CrowdStrike reported mixed first-quarter fiscal 2026 results, with adjusted earnings per share of $0.73 beating estimates and revenue of $1.1 billion slightly missing forecasts. The company’s revenue guidance for the next quarter, at $1.14 billion to $1.15 billion, fell short of analyst expectations, causing a 6-7% drop in share price after hours. CrowdStrike maintained its full-year revenue outlook and raised adjusted EPS guidance, while announcing a $1 billion share repurchase program. Annual recurring revenue grew 22% year-over-year to $4.44 billion, reflecting strong subscription momentum and platform adoption. However, profitability metrics declined due to increased spending on sales, marketing, and R&D, partly because of previous IT outages and mounting competition. Broader macroeconomic pressures, including high interest rates and cautious enterprise tech spending, are expected to challenge the company's future growth despite robust cybersecurity demand.