Cybersecurity firm CrowdStrike has forecast lower-than-expected second-quarter revenue, citing government and enterprise spending cuts due to higher interest rates and inflation. The company’s shares fell 5.7% after the earnings release. Rising threats and ransomware attacks have increased demand for robust cybersecurity solutions, but stiff competition from other firms like Palo Alto Networks and Fortinet may also play a role. CrowdStrike reported strong first-quarter results, with adjusted earnings of 73 cents per share, but forecast free cash flow to be impacted by $29 million due to outages and expenses. The company has also approved a share repurchase program worth up to $1 billion.
Source: https://www.reuters.com/business/crowdstrike-forecasts-second-quarter-revenue-below-estimates-2025-06-03