(Reuters) -CrowdStrike forecast second-quarter revenue below Wall Street estimates, signaling soft enterprise spending on cybersecurity products, sending the company’s shares down 6.7% after the bell on Tuesday.
Higher interest rates and sticky inflation have forced clients to rein in tech spending, weighing on demand for companies such as CrowdStrike, despite an increasing need for robust cybersecurity solutions due to rising threats and ransomware attacks.
The Department of Government Efficiency’s efforts to cut costs could negatively impact the cybersecurity forecast for 2025 as the U.S. federal, state and local government contract environment appears to be significantly more challenging, brokerage William Blair said in April.
https://finance.yahoo.com/news/crowdstrike-forecasts-second-quarter-revenue-201949980.html