CrowdStrike (CRWD, Financial) just had a rollercoaster day, with shares sliding 5.5% this morning despite posting record-breaking Q3 results. The cybersecurity leader smashed expectations with adjusted earnings of $0.93 per share (versus $0.81 forecasted) and hit $1.01 billion in revenue—an eye-popping 29% increase from last year. Its Annual Recurring Revenue (ARR) soared past $4 billion, cementing its reputation as a heavyweight in the cybersecurity game. But here's the kicker: their Q4 guidance of $0.84–$0.86 per share missed analyst estimates by a hair, spooking investors and overshadowing what should have been a victory lap.
So, what's dragging CrowdStrike down? The aftermath of its infamous July software update, which crashed countless devices and left industries—from airlines to banks—scrambling. Delta Airlines is still fuming, suing the company for $500 million in losses. Despite the fallout, CEO George Kurtz struck a confident tone, emphasizing CrowdStrike's resilience and its plans to accelerate Net New ARR growth in 2026. Meanwhile, CrowdStrike's Falcon platform and shiny new Next-Gen SIEM offering continue to gain traction, with analysts like TD Cowen doubling down on their $380 price target. In their view, the short-term noise isn't enough to derail the company's long-term growth story.
What's the bottom line for investors? CrowdStrike's hiccup is a reality check in the fast-paced cybersecurity world, but it's far from a fatal blow. The company has set its sights on a massive $10 billion ARR milestone by 2031, and its strong Q3 numbers show it has the firepower to get there. The stock dip could be a golden opportunity for investors who can stomach some turbulence. CrowdStrike's growth machine is still humming—this might just be the pause before the next sprint.
