CrowdStrike

On July 19th, a faulty update, from cybersecurity firm CrowdStrike, caused a global outage on Windows devices, leading to major IT disruptions worldwide. Businesses and governments faced operational issues, with losses estimated in the billions. CrowdStrike’s share price dropped by over 40% after the incident.

CrowdStrike has addressed the issue and claimed to have implemented more robust internal processes to ensure the proper functioning of their updates and products. The company has also engaged extensively with its customers to reaffirm the quality of its products in terms of protection, ease of use, and cost-effectiveness at scale. Post-outage, CrowdStrike’s customer retention rate was 97%, slightly lower than the 97.5% reported in the same quarter last year. The company attributed this decline primarily to the outage.

Despite the outage, CrowdStrike’s revenue for the third quarter of the 2025 financial year reached $1.01 billion, marking a 29% increase compared to the same quarter in the previous year. Their annual recurring revenue was $4.02 billion, reflecting a 27% increase year over year. CrowdStrike noted that customers are seeking to consolidate service providers. Currently, 66% of customers use 5 or more security modules on CrowdStrike’s security platform, Falcon. The platform allows customers to manage their cybersecurity from a single platform.

With ongoing geopolitical tensions globally and ever-increasing connectivity, cybersecurity has become crucial for governments and organisations. Cybersecurity firms have benefitted from this trend as more organisations seek to protect themselves from online threats. Despite the July outage, CrowdStrike’s stock has risen by over 40% year-to-date. Although still about 11% from its peak.