CrowdStrike reported a strong fourth-quarter results Tuesday night, delivering beats on revenue, adjusted earnings and net new annual recurring revenue. However, the stock is under pressure in extended trading after the fast-growing cybersecurity company’s fiscal 2026 full-year outlook was slightly below the consensus forecast. After booking profits in CrowdStrike a couple of times above $400 per share earlier this year, we can look to buy those shares back at these lower prices. Revenue in the fiscal 2025 fourth quarter increased 25% year over year to $1.06 billion, beating the consensus estimate of $1.03 billion, according to LSEG. Adjusted earnings per share (EPS) increased 8% annually to $1.03 in the three months ended Jan. 31, ahead of the 85-cent estimate, LSEG data showed. Annual recurring revenue (ARR) grew 23% to $4.24 billion, also ahead of the $4.21 billion estimate, according to FactSet. This represented a net new addition of $224.3 million. Remaining performance obligation increased 41% year-over-year to $6.5 billion, beating the $5.59 billion consensus estimate compiled by FactSet. CrowdStrike shares fell more than 9% in after-hours trading to roughly $354. This level would mark a 22% pullback from the stock’s closing high of $455.36 per share made on Feb. 18. CrowdStrike has been under pressure over the past three weeks as part of the reversal of red-hot momentum tech stocks and the broader market sell-off on economic and tariff fears. At $354 per share, CrowdStrike is up roughly 3.5% year to date compared to the nearly 2% decline in the S & P 500 . CrowdStrike Why we own it: Cybersecurity is a must-have for companies in the digital age, and led by co-founder and CEO George Kurtz, CrowdStrike is one of the best there is (along with fellow Club name Palo Alto Networks). The company specializes in endpoint protection through its AI-native platform called Falcon. The stock’s fall in response to a faulty software update last year provided us an attractive entry point in. Competitors: Palo Alto Networks, Fortinet, SentinelOne, Microsoft Portfolio weighting: 2.56% Most recent buy: Jan. 13, 2025 Initiation date: Oct. 16, 2024 Bottom line We’ve long believed cybersecurity is essential for companies of all sizes, and it’s an area that requires continual business investment. A breach of a company’s data can be very costly — for both its finances and reputation. We also live in a world where bad actors are becoming more sophisticated every day. Companies must ensure that they have every part of their systems protected, but all it takes for a breach is the hacker getting it right once. That’s why we continue to believe in owning CrowdStrike. Investing in best-of-breed companies is a time-honored strategy, and CrowdStrike’s endpoint cybersecurity solutions — think protecting laptops, desktops and cellphones — remain above the rest. Palo Alto Networks also fits description for its network security. On Tuesday’s earnings call,…
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