What Analysts Think of CrowdStrike Stock Ahead of Earnings

After markets adjacent Tuesday, CrowdStrike (CRWD) is scheduled to study results for its fiscal 2025 3rd quarter, nan cybersecurity company's first afloat play since its faulty July package update led to a world Microsoft (MSFT) Windows outage pinch wide-ranging impacts.

The cybersecurity company, which serves immoderate of nan biggest tech companies and their unreality computing platforms for illustration Microsoft Azure, pushed an update successful July that caused issues pinch Windows astir nan world.

Even though 25 of nan 27 analysts tracked by Visible Alpha rate CrowdStrike arsenic a "buy," pinch 1 "hold" and "sell" rating apiece, nan stock's mean target price is $336.85, astir 7% beneath its level Monday afternoon. The banal has recovered the crushed it lost successful nan days pursuing nan summertime outage—including a 22% rally this month—but nan mean value target suggests analysts whitethorn beryllium waiting for nan company's study to set their outlook.

Analysts expect CrowdStrike to study $983.0 cardinal successful revenue for nan 3rd quarter, up from $786.0 cardinal a twelvemonth ago, pinch a profit of conscionable $1.3 million, down from $26.7 million. After stripping retired one-time expenses, CrowdStrike is projected to study adjusted nett income of $203.5 million, up from $199.2 million.

First Full Quarter Since Outage

The study will item CrowdStrike's first afloat quarter since nan July outage, providing an first look into what lasting effect nan incident whitethorn person had connected nan company's customer base.

In a caller note, Morgan Stanley analysts said their investigation has shown CrowdStrike's bookings took a projected 15% year-over-year hit, amended than nan statement 37% diminution different analysts expect. The Morgan Stanley analysts said their investigation has indicated that galore caller deals person been paused alternatively than canceled, and said they haven't seen "material churn" successful CrowdStrike's customer guidelines arsenic discounts and package deals person helped nan institution clasp immoderate momentum.

"The main quality successful nan competitory situation astatine this constituent is that CrowdStrike is nary longer 'automatically' chosen by customers arsenic nan adjacent endpoint information vendor of choice," nan analysts wrote, noting that it remains an option, on pinch SentinelOne (S), Palo Alto Networks (PANW), and Microsoft itself.

The patient is besides still successful nan midst of dueling lawsuits pinch Delta Air Lines (DAL), which suffered nan biggest disruption to its operations of nan major airlines pursuing nan outage. Delta has said nan outage costs it astatine slightest $500 cardinal arsenic it canceled thousands of flights, while CrowdStrike said Delta's aging IT systems were much astatine responsibility than nan update that caused nan Windows outage.