Why CrowdStrike’s weaker guidance could be a smart buying signal

Investors are bailing on CrowdStrike Holdings Inc (NASDAQ: CRWD) this morning after its management warned of significant weakness in earnings in fiscal 2026.

The cybersecurity giant expects its adjusted per-share earnings to come in at $3.45 at the top end of its range this year – well below $4.40 that analysts had forecast.

Still, famed investor Jim Cramer recommends buying the post-earnings dip in CRWD as he reads a hint of conservatism in the company’s outlook that positions it for positive surprises in the coming quarters.

CrowdStrike stock is now down about 20% versus its year-to-date high in February.

Why is Jim Cramer bullish on CrowdStrike stock?

Cramer is bullish on CrowdStrike shares as cybersecurity has turned into a necessity in the digital age – and the Austin headquartered firm is among the best in that space.

George Kurtz, the company’s chief executive, also echoed a similar view on the earnings call last night, adding the multinational is currently “placed at the epicentre of a rapidly evolving demand environment.”

Easier access to sophisticated AI tools is leading to a record increase in cyber threats, reiterating the pivotal role that CRWD plays in the digital age, he added.

That’s why CrowdStrike stock, despite today’s sell-off, is up more than 60% versus its 52-week low at the time of writing.

CRWD shares offer exposure to the AI trade

The former hedge fund manager recommends loading up on CrowdStrike stock this morning because its Falcon platform makes it an AI play as well.

Statista forecasts the artificial intelligence market to grow at a compound annualised rate of more than 27% through the end of this decade – and CRWD offers means to capitalise on that growth.

Customer retention was another green area in the company’s earnings release last night.

For Q4, the Nasdaq-listed firm recorded gross customer retention at 97% – roughly in line with its prior quarter.

More importantly, CrowdStrike’s existing customers spent about 12% more on its products (on average) this quarter versus a year ago.

Why does CrowdStrike expect a hit to earnings?

Investors could also take heart in the company’s full-year guidance for revenue that topped Street estimates.

What’s also noteworthy is that a change in the long-term projected tax rate resulted in significant pressure on CrowdStrike’s earnings guidance for fiscal 2026.

In fact, it lowered the firm’s earnings estimate by as much as 98 cents a share, according to Jim Cramer.

Finally, shares of CrowdStrike remain worth owning as they’re somewhat insulated from the Trump tariffs.

In his recent appearance on CNBC, the Mad Money host dubbed cybersecurity stocks the safest pick within technology in the current macro environment.

Cramer’s positive view on CRWD shares is in line with Wall Street that also currently rates CrowdStrike stock at “overweight”.

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