Key Takeaways CrowdStrike shares rose after RBC Capital included the stock among its top software picks.
The company received negative coverage in July when a faulty software update caused a worldwide technology outage, but RBC said CrowdStrike successfully weathered the incident. Delta Air Lines said it continues to seek compensation from CrowdStrike in connection with the incident.
Shares of cybersecurity company CrowdStrike Holdings (CRWD) added more than 5% on Thursday, marking the S&P 500’s top performance for the day, after RBC Capital named the company one of its best North American software investment ideas for 2025.
CrowdStrike came under scrutiny in mid-July when a flawed company software update caused widespread technology outages around the world. The fallout from that incident sent CrowdStrike shares tumbling, and they remain below levels seen after those events — but the stock has been on the road to recovery since bottoming in early August.
Optimistic outlook as CrowdStrike moves in after power outage
According to analysts at RBC, negative headlines around the mid-summer software update and subsequent technology outages generated “short-term noise” surrounding CrowdStrike shares, but the company appears poised to emerge from the situation in a strong position.
RBC believes CrowdStrike could be on track to achieve $10 billion in annual recurring revenue (ARR). The company’s management team recently confirmed its goal of achieving this ambitious milestone by fiscal year 2031. CrowdStrike’s annual revenue rate for fiscal year 2024 reached more than $3.4 billion.
There are still overlays associated with the outage
CrowdStrike is still experiencing issues stemming from the July incident. When Delta Air Lines (DAL) reported lower-than-expected sales and profits in its quarterly report released Thursday, the carrier cited the negative impact of the CrowdStrike outage, which led to thousands of flights being canceled.
According to Delta, the incident caused a revenue loss of $380 million in the quarter. Delta continues to seek compensation from CrowdStrike and Microsoft (MSFT) in connection with the outage, the airline’s CEO said.
After Thursday’s gains, CrowdStrike shares are trading up about 23% year to date but remain about 21% below the all-time highs seen this summer before the incident.
