CrowdStrike (CRWD) Stock Drops 9% After Earnings Beat and 4-for-1 Stock Split

TLDR

• CrowdStrike reported Q1 FY2027 EPS of $1.10, beating estimates by $0.03
• Revenue came in at $1.39B, topping the $1.36B consensus
• CRWD stock fell ~9% in after-hours trading despite the beat
• A 4-for-1 stock split was announced; split-adjusted trading begins July 2
• Bernstein raised its price target to $413, Goldman Sachs raised to $726

CrowdStrike (CRWD) stock dropped around 9% in after-hours trading on June 3 after the company posted its fiscal first quarter 2027 results. The stock had closed at $747.61 before the report.

CrowdStrike Holdings, Inc., CRWD

The earnings beat on both the top and bottom line. EPS came in at $1.10, ahead of the $1.07 Wall Street was expecting. Revenue hit $1.39 billion, topping the consensus of $1.36 billion and up 26% year over year.

CRWD is up 65% year-to-date heading into the print, so some of the post-earnings slide may reflect profit-taking more than disappointment with the numbers.

For Q2 FY2027, management guided for revenue of $1.43B–$1.44B, in line with the $1.43B analyst estimate. Full-year FY2027 revenue guidance came in at $6.53B–$6.55B.

Full-year EPS guidance of $4.88–$4.96 also edged past the consensus of $4.86.

4-for-1 Stock Split

CrowdStrike also announced a 4-for-1 stock split of its Class A common stock. Based on the $747.61 close price, the split would put the price around $185 per share. Trading on a split-adjusted basis begins July 2.

Stock splits don’t change the underlying value of a company, but they can improve accessibility for retail investors.

Analyst Reactions

Bernstein raised its price target on CRWD to $413 from $368 following the results, while keeping a Market Perform rating. The firm pointed to the top-line beat of 1.7% at the midpoint and annual recurring revenue that came in $6 million ahead of expectations.

Goldman Sachs was more bullish. The firm lifted its price target to $726 from $500, keeping a Buy rating. Goldman noted increased customer interest in vulnerability management.

CrowdStrike raised its full-year annual recurring revenue guidance by $53 million. Bernstein noted the improved demand environment was partly driven by enterprise needs around AI security.

CrowdStrike is also a lead signatory of Project Glasswing and convened Project QuiltWorks in April to work with industry partners on enterprise buyer concerns.

Cybersecurity stocks had pulled back earlier this year on concerns about AI disruption. The sector has since recovered, with CRWD up roughly 74% over the past three months heading into earnings.

The stock currently holds a consensus Strong Buy rating from 36 Wall Street analysts, made up of 28 Buy, 7 Hold, and 1 Sell recommendations.

The average price target of $576.50 implied around 22% downside from the pre-earnings close — a figure that will likely be revised following Tuesday’s results.

Annual recurring revenue beat expectations by nearly $5 million on an organic basis, according to Bernstein’s note.

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