Key Takeaways
- CrowdStrike shares surged Thursday after the company reported strong quarterly earnings and revenue growth.
- The cybersecurity firm also raised its full-year revenue forecast.
CrowdStrike shares are soaring after the cybersecurity software firm posted what CEO George Kurtz called "the best quarter in CrowdStrike's history."
Shares of CrowdStrike (CRWD) surged 20% to finish just under $228, making the stock one of the biggest winners in the S&P 500 on a strong day for tech stocks and approaching the record high set earlier this month. The company said yesterday it generated $1.47 billion in revenue, up about 26% year-over-year, along with adjusted earnings of 31 cents per share in the quarter. Both figures topped analysts' estimates.
The cybersecurity software maker also lifted its full-year forecast, now projecting revenue of $5.99 billion to $6.01 billion, up from the prior range of $5.91 billion to $5.96 billion.
Oppenheimer analysts told clients the results showed the cybersecurity sector is "in the early stages of a multi-year investment cycle" driven by developments in AI. UBS analysts called the quarter "nothing short of stellar," and said it proved how recent AI developments, including several cybersecurity and hacking incidents involving leading AI models, are driving companies to spend on cybersecurity.
Oppenheimer and UBS lifted their price targets for the stock to $250, while Morgan Stanley raised its target to $238 from $227.
With Thursday's gains, CrowdStrike shares have nearly doubled in value from the start of the year.