Palo Alto Networks CEO boasts sales generation stemming from the aftermath of CrowdStrike
In the aftermath of a global IT outage caused by a faulty software update in July 2024, CrowdStrike has demonstrated resilience and regained its market position as a leader in cybersecurity solutions.
The catastrophic update, which impacted at least 8.5 million Microsoft Windows devices, disrupted critical services across multiple industries, leading to thousands of airline flights being cancelled, major hospitals cancelling surgeries, and 911 emergency services being suspended in several U.S. locations.
However, the stock lost about 44% immediately after the incident but recovered strongly in 2025, gaining over 37% year-to-date and nearly doubling the loss from the outage low[3]. As of July 30, 2025, the share price hovered near $495, down only slightly by 0.51% that day, showing stability after recovery[1].
Despite trading at a premium valuation (about 28x price-to-sales), analysts maintain a positive outlook citing CrowdStrike's dominance as a leader in AI-driven cybersecurity solutions and endpoint protection[1][3]. Morgan Stanley described the valuation as "full," but Wedbush labeled CrowdStrike as an industry "gold standard," indicating strong investor confidence[1].
CrowdStrike expanded partnerships (e.g., with AWS) and was named a "Leader and Fast Mover" in the 2025 GigaOm Radar Report for Identity Security Posture Management. It was also recently designated a Strong Performer by Forrester in Unified Vulnerability Management Solutions, highlighting ongoing product innovation and customer adoption[1][4].
Eric Grenier, director analyst at Gartner, does not see CrowdStrike customers looking to switch to another security vendor based on his conversations with clients. Some customers are seeking ways to sell sticking with or renewing with CrowdStrike to their businesses, or make the case for adding them as a net-new customer[5].
Palo Alto Networks, on the other hand, is receiving requests from organizations reevaluating their security vendors due to the faulty CrowdStrike software upgrade. The conversations with Palo Alto Networks involve XDR (Extended Detection and Response) and XSIAM (Extended Security Intelligence and Analytics Management)[6]. Palo Alto Networks is working to complete deals with some customers while recovering from the July IT outage.
CrowdStrike CEO George Kurtz has apologised for the outage and issued a report promising changes in software testing and deployment practices[7]. Moody's analysts have warned that CrowdStrike could see a hit on new software sales and renewals due to the July outage. There are reports suggesting customer backlash against CrowdStrike due to the July outage, as confirmed by Palo Alto Networks CEO Nikesh Arora's comments[6].
In summary, despite the severe disruption and initial market sell-off from the faulty software upgrade in July 2024, CrowdStrike has regained its footing by mid-2025, maintaining a strong position as a cybersecurity leader with robust stock performance, positive analyst ratings, and continued technological innovation[1][2][3][4].
References: 1. CrowdStrike Stock Rebounds Sharply After July Outage 2. CrowdStrike's stock plunges after outage of its endpoint security software 3. CrowdStrike Stock: A Look at Its Valuation and Growth Prospects 4. CrowdStrike Named a Leader and Fast Mover in the 2025 GigaOm Radar Report for Identity Security Posture Management 5. CrowdStrike Customers Showing No Signs of Switching Vendors, Gartner Analyst Says 6. Palo Alto Networks CEO: CrowdStrike Outage Leads to XDR Market Re-Evaluation 7. CrowdStrike CEO Apologizes for July Outage, Details Changes to Software Testing and Deployment Practices
In light of the recovery from their software update incident in July 2024, CrowdStrike continues to leverage cutting-edge technology in its AI-driven cybersecurity solutions. The company's resilience has also been evident in its enduring market position as a leader in cybersecurity technologies.
