Why CrowdStrike Stock Dropped Today Even After Beating Expectations and Raising Guidance

Shares of cloud-based cybersecurity company CrowdStrike Holdings (NASDAQ: CRWD) dropped on Wednesday after the company reported financial results for its fiscal third quarter of 2025. Results beat expectations and management raised its full-year guidance. But it didn't raise guidance as much as investors had hoped, which is why CrowdStrike stock was down about 5% as of 10:30 a.m. ET.Back on July 19, a glitch in an update to CrowdStrike's software caused massive IT outages worldwide. I had serious questions as to whether this would cause its customers to lose confidence and alter spending, but the company's growth doesn't seem to be impaired at all, based on the Q3 numbers.CrowdStrike's Q3 revenue was up 29% year over year to over $1 billion. As a subscription software business, recurring revenue is an important metric to watch. And Q3 annualized recurring revenue was up 27% to over $4 billion. Moreover, CrowdStrike offers various cybersecurity software modules to its customers and those adoption rates continue to tick higher.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool