CrowdStrike stock soars on strong earnings and positive outlook—key metrics to watch

CrowdStrike Holdings (CRWD) beat Wall Street’s quarterly expectations and released better-than-expected guidance for the current quarter and full year, sending the cybersecurity company’s stock soaring nearly 24% in after-hours trading Tuesday night.

The Austin, Texas-based company reported adjusted earnings of 95 cents per share for the period ended Jan. 31, comfortably beating analyst estimates of 82 cents per share. Revenue for the period was $845 million, an increase of 33% year-over-year and beat the consensus estimate of $839 million.

The cybersecurity company expects adjusted earnings per share of 89 cents to 90 cents and revenue in the range of $902 million to $906 million for the current quarter. Both metrics handily beat Wall Street expectations for adjusted earnings of 82 cents and revenue of $899 million.

For the full year 2025, CrowdStrike expects earnings per share to be between $3.77 and $3.97 and revenue between $3.925 billion and $3.989 billion. Analysts had expected earnings of $3.76 per share and revenue of $3.938 billion.

The company also reiterated its goal of generating $10 billion in annual recurring revenue (AAR) by 2030. The company’s AAR reached $3.44 billion as of January 31st.

In a separate statement Tuesday afternoon, the company announced that it has agreed to acquire Flow Security in a cash and stock deal aimed at enhancing cloud data protection. “With the acquisition of Flow Security, we extend our cloud leadership by protecting data flowing in the cloud in any state, and we are shaping the future of data protection by protecting data from code to applications to devices to the cloud. “We are redefining it,” the company said.

As a result of the earnings, CrowdStrike stock has strengthened above its all-time high (ATH) of $298.48 set in November 2021. Furthermore, the 50-week moving average has recently surpassed the 200-week moving average, forming a golden cross buy. signal. An expected profit-driven breakout on Wednesday will push prices into uncharted territory and sustain the current strong uptrend. It’s worth noting the trend line connecting several swing lows over the past 14 months. This could help identify key support areas during future retracements.

CrowdStrike stock rose 23.8% to $368.25 in after-hours trading Tuesday.

Comments, opinions and analyzes expressed on Investopedia are for informational purposes only. Please read our warranty and disclaimer for more information.

As of the date this article was written, the author did not own any of the securities mentioned above.