CrowdStrike (NASDAQ:CRWD) reported fourth-quarter results that exceeded Wall Street forecasts and issued guidance for fiscal 2027 that was broadly in line with market expectations, as investors continue to assess the impact of artificial intelligence on the software sector.
Shares of the cybersecurity company rose 1.4% in U.S. premarket trading on Wednesday.
The stock has declined more than 15% so far this year, as the emergence of advanced AI systems capable of handling complex digital tasks has raised concerns about the long-term growth outlook for software-as-a-service companies. However, analysts note that cybersecurity firms remain essential to corporate IT budgets, which may shield them from some of those pressures.
CrowdStrike, based in Austin, Texas, reported fourth-quarter earnings of $1.12 per share, beating analyst estimates of $1.10. Revenue came in at $1.31 billion, slightly above the $1.30 billion consensus forecast.
For the first quarter, the company expects earnings of $1.06 to $1.07 per share, compared with analysts’ expectations of $1.07. Revenue guidance was set between $1.36 billion and $1.364 billion, roughly in line with the $1.36 billion consensus estimate.
For the full fiscal year, CrowdStrike projected earnings of $4.78 to $4.90 per share, compared with analysts’ estimate of $4.84. Revenue is expected to range between $5.87 billion and $5.93 billion, versus consensus projections of $5.87 billion.
Management said growing adoption of AI technologies by enterprises is increasing demand for cybersecurity solutions, positioning the company to expand as organizations work to protect AI-driven workloads and sensitive data.
CrowdStrike finished fiscal 2026 with $5.25 billion in annual recurring revenue, including $1.01 billion in net new annual recurring revenue added during the year. The company also reported record levels of operating cash flow and free cash flow both for the quarter and the full fiscal year.
“Overall we view this as a solid print, and continue to believe the company is a well-positioned cybersecurity platform consolidator and AI beneficiary given the unique data it creates, its best-in-class technology/broadening portfolio, and its ability to both secure AI and use AI to improve security,” analysts at Stifel said in a note.