Why Is CrowdStrike Stock Down?

CrowdStrike (CRWD) reported Q1 fiscal 2027 earnings that beat Wall Street estimates on both revenue and profit — yet shares fell nearly 10% in Thursday trading. Revenue came in at $1.38 billion, a 26% year-over-year increase, topping the consensus estimate of $1.36 billion. Adjusted earnings per share hit $1.10, above the $1.07 estimate. Subscription revenue grew 26% to $1.32 billion. Annual recurring revenue climbed 24% year-over-year to $5.51 billion, with the company posting a record first quarter for net new ARR of $255.8 million — a 32% jump from the prior year. CrowdStrike also recorded a record $591 million in operating cash flow and $468 million in free cash flow, ending the quarter with $4.55 billion in cash. The company raised full-year fiscal 2027 guidance, now expecting adjusted EPS of $4.88 to $4.96 and revenue of $5.91 billion to $5.95 billion. It separately announced a 4-for-1 stock split, with shareholders of record as of June 25, 2026 set to receive three additional shares per share held. Split-adjusted trading is expected to begin July 2, 2026. Despite the sell-off, multiple analysts raised their price targets on CRWD Thursday, including Needham (Buy, $780), Susquehanna (Positive, $800), and Mizuho (Outperform, $700). The stock's RSI had reached 76.25 before earnings — a level that often signals a stretched move — and it was trading more than 32% above its 50-day moving average heading into the print. #CrowdStrike #CRWD #EarningsReaction 🖥️ Try Benzinga Pro FREE with a 14 day trial: https://www.benzinga.com/pro/register 📈 Take your trading to the next level with our suite of premium research services and tools: https://www.benzinga.com/services 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 📲 Follow us on socials @benzinga ------------------------------------------------------------------------------------ 🔹Free Benzinga Webinars: https://www.youtube.com/watch?v=LQ2jOJNkDfI&list=PL4k0fH8EgI3YTdqniRmxrvz97w3IQ61rD 🔹Benzinga Pro Tutorials: https://www.youtube.com/watch?v=a2FaHhLIrks&list=PL4k0fH8EgI3YMwoBMFXGvVMkgixFymmei&pp=gAQB 🔹Earnings Calls: https://www.youtube.com/watch?v=C2-AoCw64Ok&list=PL4k0fH8EgI3buZI5529R53wJUNd9NS4_s 🔹Premarket Playbook: https://www.youtube.com/playlist?list=PL4k0fH8EgI3ZVRPM7INpG--GvohnBVTnT 🔹Benzinga's All Access: https://www.youtube.com/playlist?list=PL4k0fH8EgI3bQSn91atO-3lPT4V6Nwsmh 🔹Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes. #StockMarket #StockMarketNews #Trading #StockMarketLive #Stocks #stocktrading #learntotrade #DayTrading #StockMarketToday