Crowdstrike Stock Tumbles 8.7% After-Hours as the Cybersecurity Firm Forecasts First-Quarter Revenue Below Estimates
(Reuters) - Cybersecurity firm Crowdstrike forecast first-quarter revenue slightly below estimates, as it grapples with weak spending on its cybersecurity products.
Shares of the Austin, Texas-based company fell 8.6% in extended trading.
Enterprise clients have kept a tight leash on critical security expenditures, as high inflation and signs of an uncertain macroeconomic environment pressure their overall budgets.
Crowdstrike expects first-quarter revenue between $1.10 billion and $1.11 billion, the midpoint of which is slightly below analysts' estimates of $1.11 billion according to data compiled by LSEG.
The company expects revenue for 2026 to be between $4.74 billion and $4.81 billion, in line with estimates.
Crowdstrike's results are in contrast with its competitors, Palo Alto Networks PANW.O and Fortinet FTNT.O, who had forecast annual revenue above estimates last month.
It posted revenue of $1.06 billion, compared with analysts' estimates of $1.03 billion, for the fourth quarter ending January 31.
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