CrowdStrike Stock Slips After Earnings Despite Record ARR Growth And Raised Guidance

Author: Dylan Berman | December 03, 2025 01:07pm

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) shares are roughly flat Wednesday. The company reported third quarter financial results on Tuesday after the market closed.

What To Know: The company reported adjusted earnings per share of 96 cents, beating the consensus estimate of 94 cents. In addition, CrowdStrike reported sales of $1.23 billion, beating the consensus estimate of $1.21 billion.

CrowdStrike reported record net new annual recurring revenue of $265 million, a 73% year-over-year increase, and ended the quarter with $4.92 billion in ARR, up 23% from a year ago. The company also generated record cash flow from operations of $398 million and free cash flow of $296 million.

Management pointed to broad strength across endpoint, cloud security, next-gen identity and next-gen SIEM. CrowdStrike also highlighted more than $1.35 billion in ARR from customers on its Falcon Flex subscription model, up more than 200% year-over-year.

Q4 Outlook: The company anticipates adjusted earnings per share between $1.09 and $1.11, versus the consensus estimate of $1.08. Furthermore, the company sees sales of $1.29 billion and $1.30 billion, versus the consensus estimate of $1.29 billion.

FY26 Outlook: CrowdStrike raised its adjusted earnings per share guidance from between $3.60 and $3.72 to between $3.70 and $3.72, versus the consensus estimate of $3.67. It also raised its revenue guidance from between $4.75 billion and $4.80 billion to between $4.79 billion and $4.80 billion, versus the consensus estimate of $4.78 billion.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Needham analyst Mike Cikos maintained a Buy rating on CrowdStrike and raised the price target from $535 to $575.
• JP Morgan analyst Brian Essex maintained an Overweight rating on CrowdStrike and raised the price target from $580to $582.
• BMO Capital analyst Keith Bachman maintained an Outperform rating on CrowdStrike and raised the price target from $500to $555.
• Scotiabank analyst Patrick Colville maintained a Sector Outperform rating on CrowdStrike and raised the price target from $600 to $613.
• Canaccord Genuity analyst Kingsley Crane maintained a Hold rating on CrowdStrike and raised the price target from $500 to $515.

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CRWD Price Action: At the time of writing, CrowdStrike shares are trading 1.1% lower at $510.75, according to data from Benzinga Pro.

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Posted In: CRWD