Results: CrowdStrike Holdings, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Investors in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) had a good week, as its shares rose 4.8% to close at US$330 following the release of its yearly results. Revenues were US$3.1b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.37, an impressive 38% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for CrowdStrike Holdings

Taking into account the latest results, the consensus forecast from CrowdStrike Holdings' 45 analysts is for revenues of US$3.97b in 2025. This reflects a sizeable 30% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 126% to US$0.84. In the lead-up to this report, the analysts had been modelling revenues of US$3.95b and earnings per share (EPS) of US$0.75 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice increase in earnings per share expectations following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 20% to US$384. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values CrowdStrike Holdings at US$540 per share, while the most bearish prices it at US$196. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that CrowdStrike Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 30% growth on an annualised basis. This is compared to a historical growth rate of 43% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% per year. So it's pretty clear that, while CrowdStrike Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CrowdStrike Holdings following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for CrowdStrike Holdings going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for CrowdStrike Holdings that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.