CrowdStrike surpasses quarterly expectations but reduces full-year forecast.

• Despite stronger-than-expected results for the quarter, CrowdStrike reduced its full-year guidance due to incentives for a customer commitment package following a widespread July 19 outage.
• Despite apologizing to customers and partners, the cybersecurity software company is facing legal challenges, including class-action suits and a threat from Delta Air Lines.

On Wednesday, the cybersecurity software maker's shares rose 4% in extended trading after reporting strong fiscal second-quarter results. However, the company reduced its full-year guidance following a global outage.

Here is how the company did compared to LSEG consensus:

• Earnings per share: $1.04 adjusted vs. 97 cents expected
• Revenue: $963.9 million vs. $959 million expected

In the quarter that ended on July 31, CrowdStrike's revenue increased by 32% year over year, resulting in net income of $47 million, or 19 cents per share, compared to $8.47 million, or 3 cents per share, in the same quarter the previous year.

The company's annual recurring revenue was slightly higher than the StreetAccount consensus, at $3.86 billion.

On July 19, CrowdStrike released a faulty configuration update for its Falcon sensor on Windows computers, aiming to collect information on new attacks. The mistake resulted in system crashes, causing flight cancellations, delayed deliveries, and postponed medical appointments. Administrators were forced to manually restart affected computers.

CrowdStrike's share price was pushed down by investors, while shareholders filed suit against the company for $380 million in lost revenue and $170 million in costs due to the incident. Additionally, travelers have filed class-action suits against CrowdStrike.

CrowdStrike shares are being held by Gray Powell and Trevor Rambo of BTIG, who wrote in an Aug. 23 note that all customers are seeking discounts.

CrowdStrike requested adjusted net earnings of 80 cents to 81 cents per share on $979.2 million to $984.7 million in revenue.

CrowdStrike's adjusted earnings per share and revenue forecasts for the 2025 fiscal year have been revised. The company now expects to earn between $3.61 and $3.65 per share and generate revenue of between $3.89 billion and $3.90 billion, which is lower than its previous forecast of $3.93 to $4.03 in earnings per share and $3.98 billion to $4.01 billion in revenue.

CrowdStrike's full-year revenue guidance is negatively impacted by $30 million in subscription revenue in each quarter and high-single-digit millions of dollars in professional services revenue in the second half of the fiscal year due to customer commitment package incentives. However, the adjusted guidance excludes costs related to the outage, the company stated.

Despite the S&P 500 index's 17% increase this year, CrowdStrike's stock had only risen by approximately 4%.

Analysts will receive a conference call from executives to discuss the results starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

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