cloud strike After the bell on Wednesday, the company narrowly beat Wall Street’s first-quarter financial estimates, but the stock fell 10% on the report.
Here’s how the company performed against LSEG’s estimates:
Earnings per share: $1.10 adjusted vs. $1.07 expected Revenue: $1.39 billion vs. $1.36 billion expected
The cybersecurity company said its revenue was up 26% compared to a year ago. Net income was approximately $27.8 million, or 11 cents per share. This widened from last year’s net loss of $104.3 million, or a loss of 42 cents per share.
CrowdStrike also announced a 4-for-1 stock split in July. The stock closed Wednesday at $747.61.
CEO George Kurtz said the company is benefiting from an “AI inflection point” driven by increased adoption of customer platforms.
“In the first quarter, the worlds of cybersecurity and frontier AI collided. This was a mythic moment,” he said in a press release. “CrowdStrike is an AI security infrastructure that is essential to successful AI deployments.”
CrowdStrike is one of a wave of cybersecurity companies profiting from a surge in demand for cyber tools, as advanced models such as Anthropic’s Mythos threaten to accelerate the pace of cyberattacks.
The sector has also managed to dispel recent AI disruption concerns that buzzed software names earlier this year. CrowdStrike is up about 60% this year.
Kurtz told analysts on Wednesday’s earnings call that AI detection and response (AIDR) is emerging as a new growth vector for CrowdStrike. He said the pipeline for the second quarter is already over $50 million.
“Think of CrowdStrike as the pick and shovel of the greatest technology gold rush in history,” he said.
CrowdStrike is an early tester of Anthropic’s Mythos through Project Glasswing. AI Lab has given early access to the model to some companies over concerns that hackers could use it to devastating effect if it were released globally.
In response to the rise of agentic AI, CrowdStrike and its competitors are also making major acquisitions and expanding their AI capabilities as customers rethink their cybersecurity strategies.
Its latest push included a $740 million deal with identity security startup SGNL and AI security startup Pangea.
CrowdStrike expected revenue for the quarter to be about $1.44 billion, roughly in line with LSEG’s estimate of $1.43 billion. The company also raised its fiscal 2027 net new annual recurring revenue growth forecast from $6.53 billion to $6.56 billion.
CrowdStrike’s stock price chart from the beginning of the year to the present.
