Major IT Outage hits banks, airlines, businesses worldwide

Screens and tech services across the globe were hit by last year’s CrowdStrike outage (Diego Radames/Getty Images)

CrowdStrike’s mixed earnings report sends stock lower as company seeks to put last year’s outage in the rearview

CrowdStrike reported first-quarter earnings after the bell Tuesday.

6/3/25 3:35PM

It was nearly a year ago that CrowdStrike reached household name status following a software glitch that caused possibly the largest IT outage ever. The cybersecurity firm’s first-quarter earnings report, posted Tuesday, highlights its continued efforts to move past it.

CrowdStrike posted earnings per share of $0.73, beating analysts’ estimates of $0.66 per share. Its revenue rose 20% year over year to $1.1 billion, a hair shy of the Wall Street consensus. The company posted annual recurring revenue of $4.44 billion, up 22%.

For its second quarter, CrowdStrike expects sales of between $1.14 billion and $1.15 billion and adjusted earnings of $0.82 to $0.84. That’s compared to analysts’ expectations for $1.16 billion in revenue and earnings of $0.81, according to FactSet.

Investors were nonplussed, sending CrowdStrike shares, which have soared lately, down more than 6% after the report.

Last year, CrowdStrike reported $60 million in costs related to its outage. In its latest earnings, the company reported another $39.7 million in outage costs. CrowdStrike has projected millions of dollars more tied to discounts the company has offered customers as a mea culpa.

Despite costs still lingering, CrowdStrike shares have recovered, breaking record closing highs three times in the past week before Tuesday’s drop after the bell. The stock has more than doubled off the lows it fell to last July shortly after the outage.

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WBD shares were up 30% on the report, while Paramount Skydance jumped 8%.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming & studios, the other for its traditional cable/TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

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Fox and News Corp slide as investors digest $3.3 billion Murdoch succession settlement

Fox and News Corp shares dropped on Tuesday after Rupert Murdoch’s heirs agreed to a $3.3 billion settlement to resolve a long-running succession drama.

Under the deal, Prudence, Elisabeth, and James Murdoch will each receive about $1.1 billion, paid for in part by Fox selling 16.9 million Class B voting shares and News Corp selling 14.2 million shares. The stock sales will raise roughly $1.37 billion on behalf of the three heirs.

The new trust for Lachlan Murdoch will now control about 36.2% of Fox’s Class B shares and roughly 33.1% of News Corp’s stock, granting him uncontested voting authority over both companies for the next 25 years. Originally, the Murdoch trust was designed to hand over voting control of Fox and News Corp to Prudence, Elisabeth, Lachlan, and James after his death.

Investors are weighing the trade-off. Clear leadership under Lachlan may resolve conflict internally, but the share dilution, executed at a roughly 4.5% discount, means long-term investors now hold slightly less clout than before.

Both companies’ stocks were trading close to all-time highs prior to the announcement.

CrowdStrike’s mixed earnings report sends stock lower as company seeks to put last year’s outage in the rearview

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