CrowdStrike boosts AI spending, raises 2027 forecasts

CrowdStrike reported a 15% increase in first-quarter operating expenses, driven by significant investments in artificial intelligence and product development. The cybersecurity company's shares saw an 8% drop in extended trading following the announcement.

The company raised its revenue forecast for 2027, expecting it to fall between $5.91 billion and $5.96 billion, a slight increase from its previous projection of $5.87 billion to $5.93 billion. CrowdStrike also adjusted its 2027 earnings per share outlook, now anticipating between $4.88 and $4.96, up from $4.78 to $4.90.

CrowdStrike is capitalizing on the growing role of AI in cybersecurity, which analysts view as a substantial long-term growth driver. Its integrated platform strategy, covering endpoint protection, cloud security, and identity management, aims to increase customer reliance on its ecosystem, fostering loyalty and cross-selling opportunities. The company also announced a four-for-one stock split.