The company said its conviction in net new ARR re-acceleration and margin expansion in the second half of fiscal year 2026 is reinforced by Falcon Flex deal momentum and early Falcon Flex expansions.

CrowdStrike Holdings, Inc. (CRWD) shares fell sharply in Tuesday’s post-market session after the cybersecurity vendor announced a small quarterly revenue miss and soft topline guidance. The company also announced a $1 billion stock buyback authorization.

Austin, Texas-based CrowdStrike reported adjusted earnings per share (EPS) of $0.73 compared to the year-ago quarter’s $0.79 and the Finchat-compiled consensus of $0.66.

Revenue climbed 20% year over year (YoY) to $1.103 billion, slightly below the $1.105-billion consensus estimate and the upper end of the guided range. The topline growth slowed from 25% in the previous quarter.

Among key user metrics, the annual recurring revenue (ARR) rose 22% and stood at $4.44 billion as of April 30, with $193.8 million being the net new ARR. 

The company noted that the adjusted subscription gross margin contracted YoY to 80% from 81%.

CEO George Kurtz said, “We started the fiscal year with record Q1 large deal and MSSP momentum alongside sustained 97% gross retention and consistently strong net retention as the market consolidates on Falcon as its cybersecurity platform of choice for the agentic AI era.”

Looking ahead, CrowdStrike guided second-quarter adjusted EPS and revenue to $0.82-$0.84 and $1.1447 billion-$1.1516 billion.respectively.

Analysts, on average, expect the numbers to be at $0.81 and $1.160 billion, respectively.

The company raised its full-year EPS guidance to $3.44-$3.56 from $3.33-$3.45 but maintained the revenue outlook at $4.7435 billion-$4.8055 billion. This compares to the guidance of $3.45 and $4.79 billion, respectively.

CFO Burt Podbere said, “Our conviction in net new ARR re-acceleration and margin expansion in the second half of fiscal year 2026 is reinforced by Falcon Flex deal momentum and early Falcon Flex expansions, strong competitive win rates and robust pipeline for the second half of fiscal year 2026.”

On Stocktwits, retail sentiment toward the CrowdStrike stock was ‘bullish’ (64/100) by late Tuesday, and the message volume on the stream was ‘high.’

CRWD sentiment and message volume as of 10:09 p.m. ET, June 3 | source: Stocktwits

The stock was among the top five trending tickers on the platform by late Tuesday.

A bullish watcher recommended buying the dip in the stock, calling it a ‘golden opportunity.’

Another user premised their bullishness on the prospects as the cyberwars and hackers prompt increased spending on cybersecurity.

CrowdStrike stock fell 6.48% to $457.09 in Tuesday’s after-hours, but it is up about 43% year-to-date.

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