Unpacking Q1 Earnings: CrowdStrike (NASDAQ:CRWD) In The Context Of Other Cybersecurity Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at CrowdStrike (NASDAQ:CRWD) and the best and worst performers in the cybersecurity industry.

Cybersecurity continues to be one of the fastest-growing segments within software for good reason. Almost every company is slowly finding itself becoming a technology company and facing rising cybersecurity risks. Businesses are accelerating adoption of cloud-based software, moving data and applications into the cloud to save costs while improving performance. This migration has opened them to a multitude of new threats, like employees accessing data via their smartphone while on an open network, or logging into a web-based interface from a laptop in a new location.

The 9 cybersecurity stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.

While some cybersecurity stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.1% since the latest earnings results.

CrowdStrike (NASDAQ:CRWD)

Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ:CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.

CrowdStrike reported revenues of $1.10 billion, up 19.8% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter meeting analysts’ expectations.

“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,” said George Kurtz, Founder and CEO.

CrowdStrike delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 2.3% since reporting and currently trades at $477.35.

Is now the time to buy CrowdStrike? Access our full analysis of the earnings results here, it’s free.

Best Q1: Zscaler (NASDAQ:ZS)

After successfully selling all four of his previous cybersecurity companies, Jay Chaudhry's fifth venture, Zscaler (NASDAQ:ZS) offers software-as-a-service that helps companies securely connect to applications and networks in the cloud.

Zscaler reported revenues of $678 million, up 22.6% year on year, outperforming analysts’ expectations by 1.6%. The business had a very strong quarter with full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ annual recurring revenue estimates.

Zscaler delivered the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 15.5% since reporting. It currently trades at $289.80.

Is now the time to buy Zscaler? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: SentinelOne (NYSE:S)

With roots in the Israeli cyber intelligence community, SentinelOne (NYSE:S) provides software to help organizations efficiently detect, prevent, and investigate cyber attacks.

SentinelOne reported revenues of $229 million, up 22.9% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.

As expected, the stock is down 12.2% since the results and currently trades at $17.27.

Read our full analysis of SentinelOne’s results here.

Palo Alto Networks (NASDAQ:PANW)

Founded in 2005 by cybersecurity engineer Nir Zuk, Palo Alto Networks (NASDAQ:PANW) makes hardware and software cybersecurity products that protect companies from cyberattacks, breaches, and malware threats.

Palo Alto Networks reported revenues of $2.29 billion, up 15.3% year on year. This print surpassed analysts’ expectations by 0.5%. More broadly, it was a satisfactory quarter as it also logged a solid beat of analysts’ EBITDA estimates but full-year revenue guidance meeting analysts’ expectations.

The stock is down 3.6% since reporting and currently trades at $187.66.

Read our full, actionable report on Palo Alto Networks here, it’s free.

Okta (NASDAQ:OKTA)

Founded during the aftermath of the financial crisis in 2009, Okta (NASDAQ:OKTA) is a cloud-based software-as-a-service platform that helps companies manage identity for their employees and customers.

Okta reported revenues of $688 million, up 11.5% year on year. This result topped analysts’ expectations by 1.2%. Aside from that, it was a satisfactory quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations but a miss of analysts’ billings estimates.

The stock is down 27.1% since reporting and currently trades at $91.60.

Read our full, actionable report on Okta here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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