CrowdStrike Inc. (NASDAQ:CRWD) saw its shares decline in premarket trading on Wednesday, following the company’s announcement of revenue guidance for the upcoming quarter that fell short of analyst predictions. This tempered enthusiasm came despite the cybersecurity firm reporting first-quarter earnings that surpassed expectations.
For the second fiscal quarter, CrowdStrike projected adjusted earnings per share between $0.82 and $0.84, slightly above the consensus estimate of $0.81. However, the company forecasted revenue in the range of $1.14 billion to $1.15 billion, which missed the anticipated $1.16 billion mark.
In the quarter ending April 30, CrowdStrike posted adjusted earnings of $0.73 per share, beating the forecast of $0.66. Revenue reached $1.1 billion, narrowly missing the $1.11 billion estimate.
The earnings upside was fueled by a growth in new customer subscriptions, driving the average recurring revenue—a key metric for its subscription services—to $4.44 billion, a 22% increase year-over-year as of the end of April.
Looking ahead, CrowdStrike’s fiscal 2026 earnings per share guidance stands between $3.44 and $3.56, slightly higher than Wall Street’s $3.45 estimate at the midpoint. The company expects annual revenue to fall between $4.74 billion and $4.81 billion, compared to analyst expectations of $4.79 billion.
Additionally, CrowdStrike revealed plans for a share repurchase program worth up to $1 billion.
Earlier in May, the Texas-based company announced a reduction of approximately 500 jobs, around 5% of its workforce, as part of cost-cutting and operational efficiency efforts. The related restructuring charges were estimated to hit between $36 million and $53 million, with about $7 million already accounted for in the quarter ending April 30. The remaining expenses, mainly related to severance and employee benefits, are expected in the current fiscal quarter.
Following the update, some analysts revised their ratings. Evercore ISI downgraded CrowdStrike’s stock from “outperform” to “in line,” citing a need for clearer visibility into the company’s near-term trajectory. Similarly, Canaccord Genuity Capital Markets lowered their rating from “buy” to “hold,” noting that while the guidance was solid, it fell short of the lofty market expectations.