CrowdStrike announced on December 1, 2025 that it has entered a strategic partnership with Hewlett Packard Enterprise and NVIDIA. The deal positions CrowdStrike’s Falcon platform as the core security solution for HPE’s Unleash AI partner program, embedding a single‑agent, AI‑native security stack into HPE’s private‑cloud AI factory to protect large‑language‑model workloads and other AI workloads at scale.
CrowdStrike’s Q4 fiscal 2025 results showed revenue of $1.06 billion, a 25% year‑over‑year increase, and adjusted earnings per share of $1.03, beating consensus estimates of $0.86 by $0.17. The revenue lift was driven by a 23% rise in subscription revenue to $X billion and a 15% increase in professional‑services revenue to $Y million, reflecting strong demand for its cloud‑security and identity‑protection offerings. The earnings beat was largely a result of disciplined cost management and a favorable mix shift toward higher‑margin subscription contracts.
GAAP subscription gross margin contracted to 77% from 78% in the prior year, while non‑GAAP subscription gross margin remained steady at 80%. The slight margin compression reflects a modest increase in lower‑margin professional‑services work and the cost of scaling AI‑enabled security services, but overall profitability remains robust.
Management guidance for the first quarter of fiscal 2026 projects revenue of $1.10 billion to $1.11 billion and adjusted EPS of $0.64 to $0.66, both below analyst consensus of $0.96. Full‑year 2026 revenue guidance of $4.74 billion to $4.81 billion and EPS guidance of $3.33 to $3.45 fall short of consensus estimates of $4.77 billion and $4.43, respectively. The cautious outlook signals management’s concern about near‑term headwinds, including increased investment in AI‑security capabilities and potential macro‑economic uncertainty.
Investor reaction to the earnings release was negative; shares fell in after‑hours trading as the market focused on the downgraded EPS guidance. The decline reflects investor concern that the company’s forward‑looking profitability may be constrained despite the current quarter’s strong performance.
CEO George Kurtz emphasized the partnership’s strategic importance, stating, “HPE’s recognition underscores what customers tell us every day: CrowdStrike is the platform of record for protecting AI workloads, agents, infrastructure, and data.” CFO Burt Podbere added, “The fundamental strengths of our business reflected in our strong customer retention, accelerating module adoption, and multiple large growth opportunities give us confidence in achieving our target model by fiscal year 2029 and delivering long‑term profitable growth.”
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