CrowdStrike (CRWD) Q2 financial performance for 2025

CrowdStrike’s stock dipped 4% in after-hours trading following its robust fiscal second-quarter results announcement but revised guidance for the year down due to a global outage. The company outperformed LSEG estimates in the following categories:

• EPS (Earnings Per Share): $1.04 adjusted versus an expected 97 cents
• Revenue: $963.9 million compared to the anticipated $959 million

During the quarter ending July 31, CrowdStrike’s revenue surged by 32% year over year. The company reported a net income of $47 million, or 19 cents per share, a significant jump from $8.47 million, or 3 cents per share, in the same period last year. CrowdStrike’s annual recurring revenue slightly surpassed the StreetAccount consensus at $3.86 billion.

In a regrettable move on July 19, CrowdStrike mistakenly issued a faulty content configuration update for its Falcon sensor to machines using Microsoft Windows operating systems. This resulted in widespread computer crashes, leading to flight disruptions, delayed package deliveries, and rescheduled medical appointments. Affected computers had to be manually rebooted to rectify the issue. CrowdStrike CEO George Kurtz issued an apology and assured the deployment of a fix. Despite this, the company’s share prices took a hit and faced legal action from shareholders, Delta Air Lines, and impacted travelers.

Discussing financial safeguards, CrowdStrike’s CFO Burt Podbere noted that customer agreements restrict liability, supported by insurance and cash reserves. Analysts from BTIG mentioned customer demands for discounts post-outage. Professional services revenue declined to $45.6 million from $48.9 million in the previous quarter due to free remediation services offered to clients affected by the July 19 incident.

CrowdStrike’s adjusted net earnings guidance for the period is estimated at 80 to 81 cents per share on a revenue range of $979.2 million to $984.7 million. For the full 2025 fiscal year, CrowdStrike now forecasts adjusted earnings of $3.61 to $3.65 per share and revenue between $3.89 billion and $3.90 billion, adjusted from the initial projection.

CrowdStrike cited factors such as a negative subscription revenue impact of $30 million per quarter and high single-digit million dollars professional services revenue in the latter half of the fiscal year due to customer commitment incentives. The adjusted forecast excludes outage-related costs. CEO Kurtz highlighted delayed deals due to the incident, necessitating a longer sales cycle requiring higher-level approvals.

Prior to the earnings release, CrowdStrike stock rose by approximately 4% for the year, contrasting with the S&P 500’s 17% gain during the same period. For more details, refer to CNBC.