Cybersecurity giant CrowdStrike Holdings (NASDAQ:CRWD) could provide an outlook for the sector facing pressure from AI tools when the company reports fourth-quarter financial results Tuesday after market close.
Here are the earnings estimates, what experts are saying ahead of the report and key items to watch.
CrowdStrike Q4 Earnings Estimates
Analysts expect CrowdStrike to report fourth-quarter revenue of $1.30 billion, up from $1.06 billion in last year's fourth quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in two straight quarters and in nine of the last 10 quarters overall.
Analysts expect CrowdStrike to report fourth-quarter earnings per share of 74 cents, down from $1.03 in earnings per share in last year's fourth quarter.
The company has beaten analyst earnings-per-share estimates in more than 15 straight quarters.
Guidance from the company calls for fourth-quarter revenue to be in a range of $1.29 billion to $1.30 billion and earnings per share to be in a range of $1.09 to $1.11.
What Experts Are Saying About CrowdStrike Stock
Freedom Capital Markets Chief Market Strategist Jay Woods highlights the year-to-date declines in CrowdStrike shares due to the "AI disruption trade."
"Annual recurring revenue trends will be in focus," Woods said in a weekly newsletter. "These measure the consistent revenue from ongoing subscriptions – essentially the value of CrowdStrike's installed customer base locked into recurring payments."
Woods said investors should look for signs that customers are paying for and renewing CrowdStrike products.
The market expert said CrowdStrike's guidance could be the key to which direction shares trade, with potential commentary on the disruption from AI companies. Woods notes the stock has moved an average of +/-7.7% over the last 10 earnings report.
"The good news for the bulls – shares have rallied after seven of the 10 reports."
Woods tells investors to "expect volatility" for the stock after earnings, noting that the stock's technicals show an "interesting inflection point."
The market expert highlights a downtrend area just above $420 and April lows around $320, which could be retested on a breakdown.
"The downside risk seems to outweigh the reward as rallies continue to be sold when we get them."
Piper Sandler analyst Rob Owens upgraded CrowdStrike stock from Neutral to Overweight with a price target of $520.
The analyst said the decline in the stock due to AI concerns is an overreaction. Owens takes things a step further, by saying that AI is an opportunity for CrowdStrike and not a threat.
Owens highlighted CrowdStrike's recent acquisitions as having potential to boost its offerings and tackle new underserved markets.
Key Items to Watch In Q4 Results
The company posted a 22% revenue increase in the third quarter on a year-over-year basis, with subscription revenue up 21% year-over-year. The company also showed strong annual recurring revenue growth of 23% year-over-year, a key item to watch on Tuesday.
"CrowdStrike is the enabler of secure AI transformation with the right architecture, the right products, and the right execution," CrowdStrike CEO George Kurtz said after third-quarter results.
Kurtz said the third quarter was one of the best quarters in company history.
The company raised its outlook for the full fiscal-year after Q3 results, which puts a bigger spotlight on fourth-quarter results.
Investors and analysts will be looking for a double beat and strong guidance for the next fiscal year.
CrowdStrike Stock Price Action
CrowdStrike stock is up 2.9% to $382.85 on Monday versus a 52-week trading range of $298.14 to $56.90. CrowdStrike stock is down 15% year-to-date in 2026 and up 0.8% over the last 52 weeks.
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