CrowdStrike delivered strong financial performance in its most recent reporting period, generating $3.95 billion in revenue for the fiscal year ending January 31, 2025, which represented a 20% year-over-year increase in light of facing considerable operational challenges from a major software outage in July.
The cybersecurity company’s revenue momentum continued into the first quarter of fiscal 2026, reaching $1.10 billion, up 20% from $921.0 million in the prior year quarter.
Subscription revenue, which forms the backbone of CrowdStrike‘s business model, demonstrated resilience by climbing to $1.05 billion in the latest quarter, marking a 20% increase from $872.2 million year-over-year. Annual recurring revenue reached $4.44 billion as of April 30, 2025, reflecting 22% year-over-year growth and underscoring the company’s ability to maintain customer relationships in spite of operational setbacks.
CrowdStrike’s subscription revenue surged 20% to $1.05 billion, demonstrating remarkable resilience despite significant operational challenges from the July software outage.
However, profitability metrics revealed the financial toll of the July software outage, which caused widespread disruptions for clients across multiple industries. The company reported a GAAP net loss of $110 million for the first quarter of fiscal 2026, whilst GAAP loss from operations reached $124.7 million, a stark contrast to the $6.9 million income recorded in the previous year.
Non-GAAP income from operations declined to $201.1 million from $213.3 million the previous year.
The outage greatly impacted profit margins as CrowdStrike incurred substantial costs addressing software updates, managing client retention efforts, and steering ongoing regulatory matters. Client losses and increased support expenses further pressured operational performance, temporarily damaging the company’s reputation and trust levels among its customer base.
In spite of these challenges, free cash flow demonstrated encouraging recovery trends, rising to approximately $280 million with a margin of 25.3%, compared to $240 million and 22.7% in the previous quarter. The company’s stock performance has shown resilience in the market, with CRWD recently gaining 2.3% daily to close at $349.12.
Management projects full-year revenue for fiscal 2026 between $4.74 billion and $4.81 billion, representing 20.8% growth over the previous year. The company’s revenue forecast fell below consensus estimates, contributing to ongoing investor concerns about near-term performance.
Market analysts maintain optimistic outlooks, with consensus revenue forecasts of $4.78 billion for 2025 and $5.84 billion for the following year. The company’s $115.4 billion market capitalization reflects investor confidence in CrowdStrike’s long-term prospects in spite of temporary operational disruptions affecting near-term profitability.
