It has been about a month since the last earnings report for CrowdStrike Holdings (CRWD Quick QuoteCRWD - Free Report) . Shares have lost about 3.5% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is CrowdStrike due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

CrowdStrike Q4 Earnings and Revenues Beat Estimates

CrowdStrike reported non-GAAP earnings per share of $1.12 for the fourth quarter of fiscal 2026, which surpassed the Zacks Consensus Estimate by 1.6%. The bottom line increased 8.7% on a year-over-year basis.

The company’s fourth-quarter revenues of $1.31 billion surpassed the consensus estimate by 0.68%. Moreover, the top line increased 23.6% year over year.

Top-Line Details of CrowdStrike

Subscription revenues (95.2% of the total revenues) jumped 23.2% year over year to $1.24 billion. Professional services revenues (4.8% of the total revenues) increased 25.7% year over year to $63.1 million.

As of Jan. 31, 2026, annual recurring revenues (ARR) were $5.25 billion, up 24% year over year. The company added $330.7 million to its net new ARR in the reported quarter.

CrowdStrike’s subscription customers, who adopted six or more cloud modules, represented 50% of the total subscription customers, those with seven or more cloud modules accounted for 34%, and those with eight or more cloud modules represented 24% as of Jan. 31, 2026.

CRWD’s Operating Details

CrowdStrike’s gross profit increased 25.9% to $989.5 million in the fiscal fourth quarter from $786.2 million in the year-ago quarter. The non-GAAP gross margin increased 100 basis points to 79%.

The non-GAAP subscription gross profit soared 24.4% year over year to $1 billion, while the gross margin expanded 100 basis points (bps) year over year to 81%. The non-GAAP professional gross profit increased 35.9% to $21.9 million, while the gross margin expanded 300 bps to 35% on a year-over-year basis.

CrowdStrike’s total non-GAAP operating expenses increased 19.8% to $703.2 million from $586.9 million reported in the year-ago quarter. As a percentage of revenues, non-GAAP operating expenses decreased 300 basis points to 54%.

Non-GAAP sales and marketing expenses jumped 15.5% year over year to $384.7 million. Non-GAAP research and development expenses climbed 24.9% year over year to $246.3 million. Non-GAAP general and administrative expenses increased 2.8% year over year to $73.2 million.

The non-GAAP operating income increased 44.9% to $325.8 million. The non-GAAP operating margin for the quarter contracted 400 bps year over year to 25%.

CRWD’s Balance Sheet & Cash Flow

As of Jan. 31, 2026, cash and cash equivalents were $5.23 billion. CrowdStrike had a long-term debt of $745.5 million.

In the fiscal fourth quarter, CrowdStrike generated operating and free cash flows of $497.9 million and $376.4 million, respectively.

CrowdStrike’s Q1 and FY27 Guidance

CrowdStrike initiated guidance for the fiscal first quarter. For the fiscal first quarter, CrowdStrike anticipates revenues between $1.36 billion and $1.364 billion. The non-GAAP operating income is expected in the band of $308.0-$310.4 million. Non-GAAP net income is forecasted in the range of $275.8-$277.1 million. The company expects non-GAAP earnings per share in the band of $1.06-$1.07 per share.

For fiscal 2027, CrowdStrike now expects revenues between $5.8676 billion and $5.9276 billion. The non-GAAP operating income for fiscal 2027 is now projected in the band of $1.4222-$1.4622 billion.

For fiscal 2027, the company now expects non-GAAP net income in the range of $1.241 billion-$1.2711 billion. Non-GAAP earnings per share are anticipated in the band of $4.78-$4.90.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

The consensus estimate has shifted 14.67% due to these changes.

VGM Scores

Currently, CrowdStrike has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, CrowdStrike has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

CrowdStrike belongs to the Zacks Security industry. Another stock from the same industry, Palo Alto Networks (PANW Quick QuotePANW - Free Report) , has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended January 2026.

Palo Alto reported revenues of $2.59 billion in the last reported quarter, representing a year-over-year change of +14.9%. EPS of $1.03 for the same period compares with $0.81 a year ago.

Palo Alto is expected to post earnings of $0.81 per share for the current quarter, representing a year-over-year change of +1.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Palo Alto has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.