Cybersecurity company $CrowdStrike (CRWD.US)$ will announce its Q3 results for the fiscal year 2025 after the market closes on Tuesday. Analysts expect the company's Q3 revenue to be 0.983 billion dollars, a year-on-year increase of 25%; eps is expected to be 0.02 dollars, a year-on-year decrease of 80%.

By business segmentation, the analyst expects subscription revenue to be 0.937 billion US dollars, a year-on-year increase of 27.7%; professional services revenue is 49.04 million US dollars, a year-on-year decrease of 6.7%.

Analysts predict that revenue from the usa will reach $0.683 billion, a year-on-year increase of 26.9%.

Analysts also expect the annual recurring revenue (ARR) to reach $4 billion, compared to $3.15 billion in the same period last year.

Analysts expect that the Non-GAAP subscription gross profit will reach 0.752 billion dollars, compared to 0.589 billion dollars in the same period last year; Non-GAAP professional services gross profit is expected to be 16.57 million dollars, down from 23.02 million dollars in the same period last year.

Before CrowdStrike announces its third-quarter results, wall street brokerages including jpmorgan, KeyBanc Capital Markets, jefferies financial, and Baird raised their target prices for the company. CrowdStrike's stock price rebounded after the global IT service interruption in July, rising 40% year-to-date.

jpmorgan analyst Brian Essex stated: "The performance in the third quarter may be much better than some expected. This is the first full quarter following the network outage on July 19."

He added, "We expect that growth, profit margins, and cash flow for the quarter will face significant pressure, and the further away we get from the date of the network disruption, the better the fundamentals will be."

KeyBanc Capital analyst Eric Heath stated, "We believe that crowdstrike can increase its ARR growth rate to around 25% in the medium term."

During the "global outage," analysts expect "net new" ARR to slow down due to contract signing delays and many clients seeking price discounts when renewing contracts to help offset the costs of business interruptions.

Negotiations between crowdstrike and clients regarding pricing concessions are expected to continue until 2025 or even longer.

Jefferies Financial analyst Joseph Gallo stated, "The biggest concern for crowdstrike this quarter is whether investors will care about potential weakness in the third/fourth quarters as long as the long-term ARR trajectory remains normal. We believe the next major catalyst for the stock price remains the guidance for fiscal 2026, which will not be released until March of next year."

He added, "The market generally expects the ARR for fiscal 2026 to be $5.1 billion, which implies a year-on-year growth of 21%, compared to year-on-year growth of 23% in fiscal 2025."

Editor/Somer