CrowdStrike Holdings (NASDAQ:CRWD) could offer a look at how the cybersecurity sector is shaping up once third-quarter financial results are released Tuesday after the market closes.
Here are the earnings estimates, what experts are saying, and key items to watch.
Earnings Estimates: Analysts expect CrowdStrike to report Q3 revenue of $1.21 billion and earnings per share of 94 cents. That’s up from $1.01 billion, or 93 cents per share, in last year's third quarter, according to Benzinga Pro.
The company has beaten analyst revenue estimates in eight of the last 10 quarters, including the second quarter.
CrowdStrike also exceeded analyst estimates for earnings per share in nine of the last 10 quarters, including the second quarter.
Guidance from the company calls for revenue between $1.208 billion and $1.218 billion; earnings per share between 93 cents to 95 cents per share.
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What Experts Are Saying
Wedbush analyst Dan Ives expects CrowdStrike to report a "solid quarter" Tuesday. He maintains an Outperform rating with a price target of $600 for the stock ahead of earnings.
Ives said the company's consolidation strategy is showing strength, along with the company's AI opportunity.
The analyst keeps the stock on the Ives AAI 30 List and Wedbush's Best Idea's List ahead of earnings.
Ives said CrowdStrike is "in the early stages of capitalizing on AI Revolution market opportunity."
CrowdStrike's agentic security strategy is still “in the early innings of playing out” after it announced several new AI solutions to its platform, Ives said.
The analyst said CrowdStrike has strong opportunity ahead to expand its market presence.
"We expect to see an accelerating upward trend but will torque everything pointing to an elevated benefit from AI cyber spending with CRWD in a strong position to continue capitalizing on the AI cybersecurity trend."
Freedom Capital Markets Chief Market Strategist Jay Woods said CrowdStrike has dealt with past crises and grown stronger as a company after.
"CrowdStrike has been the model for cybersecurity stocks for years now," Woods said in a weekly newsletter.
The market expert said CrowdStrike shares are at a "technical crossroads" ahead of earnings. Woods said price activity has shown bearish momentum and investors should look for more weakness if CrowdStrike guidance disappoints.
"It is not the ideal set-up to trade into earnings, but should provide much better risk/reward opportunities after they report."
Here are other recent analyst ratings on CrowdStrike and their price targets:
- JPMorgan: Maintained Overweight rating, raised price target from $500 to $580
- KeyBanc: Maintained Overweight rating, raised price target from $510 to $570
- DA Davidson: Maintained Buy rating, raised price target from $515 to $580
- Oppenheimer: Maintained Outperform rating, raised price target from $560 to $580
Key Items to Watch
CrowdStrike's financial results come after announcing a partnership with Nvidia to develop cybersecurity AI agents in October.
The partnership announcement sent CrowdStrike shares higher and may have investors eager to hear more about how the two companies will work together.
In the second quarter, CrowdStrike revenue was up 21% year-over-year with subscription revenue up 21% to $1.10 billion. Analysts and investors will be looking for strength in subscription revenue while AI remains a key area to watch.
"As AI transforms the enterprise, CrowdStrike enables organizations to confidently embrace their AI future from development to deployment, from cloud to endpoint, and from human to agent," CrowdStrike CEO George Kurtz said after second-quarter results.
The company previously raised full-year revenue and earnings per share guidance after second-quarter results. Another strong quarter and raised guidance could send shares higher.
CRWD Price Action: CrowdStrike stock is down 1.1% to $503.83 on Monday, versus a 52-week trading range of $298.14 to $566.90. CrowdStrike shares are up 45.0% year-to-date in 2025.
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