CrowdStrike Q2 FY 2025 Earnings Preview: Analysts Expect Revenue and Profit Growth

Introduction

CrowdStrike (CRWD) is set to release its second-quarter results for fiscal 2025 after the bell on Wednesday, Aug. 28. This will be the company’s first earnings report since a faulty software update caused a global outage, and investors are eager to gauge the impact of the incident. Analysts are expecting revenue and profit growth from the year-ago period, and they will also be looking for updates on the impact of the outage.

Analyst Estimates for Q2 2025

According to estimates compiled by Visible Alpha, analysts expect CrowdStrike’s revenue to grow to $957.6 million from $731.63 million a year ago. Net income is projected to be $49.42 million, or 20 cents per share, a significant jump from the year-ago period. These estimates indicate strong growth for the cybersecurity company.

Key Metrics: Outage Impact on Full-Year Outlook

One of the key areas of interest for investors will be the impact of the July global outage on CrowdStrike’s full-year revenue guidance. The company could provide an update on its fiscal 2025 revenue guidance, which would give investors greater insight into the near-term impact of the incident on sales.

Citi analysts believe that CrowdStrike won’t come out of the incident “unscathed” due to higher discounts, lower negotiating leverage, and potential litigation costs. However, they also believe that the company “can gradually overcome unavoidable headwinds” in the long term. The consensus estimates compiled by Visible Alpha suggest that the full-year fiscal 2025 revenue outlook will be about $3.96 billion, slightly below the low end of the company’s previously provided guidance.

Business Spotlight: Post-Outage Litigation Efforts

CrowdStrike may face legal action from customers affected by the outage, with some estimates indicating that it could cost the affected companies several billion dollars in losses. Delta Air Lines, which said the incident cost the airline at least $500 million, has threatened legal action against CrowdStrike. However, both CrowdStrike and Microsoft have disputed Delta’s claims on how the events unfolded.

Investors will be interested in any updates from CrowdStrike regarding potential litigation and its expectations for legal costs. These factors could have a significant impact on the company’s financial performance and reputation.

Conclusion

CrowdStrike’s second-quarter earnings report for fiscal 2025 is highly anticipated, as it will provide insights into the impact of the recent global outage caused by a faulty software update. Analysts expect revenue and profit growth from the year-ago period, but there are concerns about the potential litigation costs and the long-term effects of the incident. Investors will be closely watching the company’s guidance and any updates regarding the outage and potential legal action. CrowdStrike shares have performed well so far this year, gaining about 7% since the start of the year.