Cybersecurity Giant CrowdStrike Misses Q2 Revenue Forecast; Profits Lean on Cost-Cutting, Not Growth Under 'Blue Screen Shadow'

TradingKey - On June 3rd, Eastern Time, cybersecurity company CrowdStrike (CRWD.US) reported earnings for the first quarter of fiscal year 2026 (ending April 30, 2025). It provided revenue guidance for the second quarter, resulting in a 6% drop in its stock price after hours.

CrowdStrike forecasts Q2 revenue to be between $1.14 billion and $1.15  billion, falling short of analysts' average estimate of $1.16 billion. Although the adjusted earnings per share guidance($0.82 to $0.84) slightly exceeded expectations ($0.81), the missed revenue target raised concerns in the market regarding its growth momentum.

The "blue screen incident," caused by a software update last July that led to a global crash of Windows systems, continues to impact the company's costs and customer confidence.

According to the earnings data, Q1 revenue reached $1.1 billion, representing a year-over-year increase of approximately 20%, which was in line with expectations. However, the net loss reached $110.2 million, compared with a net profit of $42.8 million in the same period last year.

CrowdStrike maintained its full-year revenue forecast at $4.74 billion to $4.81 billion, which is below analysts' expectations of $4.77 billion; it only raised its earnings guidance(adjusted earnings per share is projected at $3.44 to $3.56, compared to the previous guidance of $3.33 to $3.45). This move was interpreted by the market as relying more on cost control rather than revenue expansion.

UBS has downgraded CrowdStrike's rating to "Sell." Analyst Greg Gillis stated in the report that CrowdStrike's growth engine has significantly slowed down and that the ongoing impacts of the "blue screen incident" have been underestimated by management.