CrowdStrike slumps 10% on weak earnings outlook, overhang from outage costs

▤ Summary

CrowdStrike shares dropped 10% after issuing weak earnings guidance as the company signaled ongoing pressure from its global IT outage that rattled businesses in July. CrowdStrike is projecting earnings for the year to range between $3.33 and $3.45 per share, excluding items. The company also said it anticipates another $73 million in expenses for the first quarter resulting from its July update that spurred a global IT outage, grounded flights and disrupted businesses. CrowdStrike projects an additional $43 million in costs due to some deal packages offered in its wake. The outage has also weighed on free cash flow margins, which CrowdStrike said on the call it expects to return to 30% or more in the fiscal 2027 year.

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CrowdStrike

$1B+