(Reuters) – CrowdStrike Holdings forecast fiscal 2025 results above Wall Street estimates on Tuesday, on the back of strong enterprise spending toward cybersecurity services to counter rising online threats.
Shares of CrowdStrike were up 16.4% in extended trading, while other cybersecurity stocks also rallied after hours. SentinelOne jumped 6.9%, while Palo Alto Networks and Fortinet each gained over 3%, and Zscaler rose over 2%.
The fast adoption of generative AI has opened new challenges for enterprises and has led to investments in cybersecurity services, such as the ones offered by CrowdStrike, to secure their business operations against external threats.
CrowdStrike, which offers unified platforms such as Falcon, is expected to benefit from improved spending trends, according to analysts.
The company sees adjusted profit between $3.77 and $3.97 per share for fiscal 2025, the mid-point of which is above analysts’ expectations of $3.75, according to LSEG data.
The Austin, Texas-based company expects annual revenue between $3.92 billion and $3.99 billion, the midpoint of which was above estimates of $3.94 billion.
It expects first-quarter revenue between $902.2 million and $905.8 million, above analysts’ estimates of $899.3 million.
Excluding items, it expects profit between 89 cents and 90 cents per share in the first quarter, which was also above expectations.
The company said it agreed to acquire cloud data runtime security solution, Flow Security, to expand its data protection offerings for the cloud.
CrowdStrike posted revenue of $845.3 million for the fourth-quarter ended Jan. 31, beating estimates of $839.1 million.
(Reporting by Harshita Mary Varghese; Editing by Krishna Chandra Eluri)
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