CrowdStrike Earnings Preview: Cybersecurity Firm Faces High Growth Bar After Stock Surge
CrowdStrike Holdings Inc. enters its third-quarter earnings report with Wall Street expecting 20% revenue growth to $1.2 billion, a testament to its recovery from July's widespread outage. The cybersecurity leader now trades at 77 times projected free-cash-flow-per-share—nearly double its peers' 40x multiple—after its stock rallied 130% from August lows.
Analysts maintained $0.94 adjusted EPS estimates despite accounting changes that lowered the metric. A shift to longer-term client contracts bolsters visibility while delaying revenue recognition, creating a tension between immediate results and long-term positioning.