Latest news with #IToutage
Yahoo
7 days ago
- Business
- Yahoo
This Cybersecurity Stock Is Beating the Market in 2025. Is It Still Worth Buying Hand Over Fist?
CrowdStrike stock has the market's attention even though the company is seeing effects from last year's IT outage. The cybersecurity specialist's valuation is elevated even though its earnings are expected to contract in fiscal 2026. The good news is that CrowdStrike should see solid earnings growth once again, beginning next year. 10 stocks we like better than CrowdStrike › The tech-laden Nasdaq Composite index is up roughly 3% so far this year as stocks in the technology sector come under pressure from macroeconomic and geopolitical factors. However, certain stocks continue to do well despite the broader market's weakness. Cybersecurity specialist CrowdStrike (NASDAQ: CRWD) posted respectable gains of 44% so far in 2025, far outpacing the tech-laden index. Let's see why that has been the case and check if this cybersecurity stock is still worth buying. A defective software update from CrowdStrike knocked out global IT systems on July 19 last year. The company faced lawsuits because of the outage, and offered compensation packages to customers in the aftermath of the incident. One segment of the business still being hit is its customer choice program (CCP), which gives its customers the flexibility to purchase more of its solutions, extend the duration of their contracts, or both. The compensation package offered to clients hit this program's margins, impacting CrowdStrike's revenue and earnings growth. The company's non-GAAP (adjusted) net income in the first quarter of fiscal 2026 (which ended on April 30) fell 8% year over year to $0.73 per share. On the bright side, analysts expected a bigger decline and were forecasting $0.65 per share in earnings, suggesting that the impact of the compensation package isn't as bad as the market feared. It helps, too, that CrowdStrike delivered respectable year-over-year revenue growth of 20% to $1.1 billion. CrowdStrike's full-year guidance indicates that CCP will weigh on its growth this year. The midpoint of its adjusted earnings guidance for fiscal 2026 stands at $3.50 per share, lower than the $3.93 per share in earnings that it generated in the previous fiscal year. The company expects its revenue to increase by almost 21% in fiscal 2026 at the midpoint of guidance, which would be slower than the 29% increase it recorded last year. CrowdStrike management estimates that CCP will impact its revenue to the tune of $10 million to $15 million in each of the remaining quarters this year. However, the good part is that CrowdStrike's earnings growth should accelerate nicely beginning in fiscal 2027. That won't be surprising, considering that CrowdStrike sees its total addressable market increasing to $250 billion in the next three years from $116 billion last year, driven by new catalysts such as AI. The company is now offering multiple AI-powered cybersecurity tools to customers, such as protecting large language models (LLMs) in collaboration with Nvidia to agentic AI assistants that can speed up the response to cybersecurity incidents. The revenue generated from sales of AI tools within the cybersecurity space is expected to jump by more than 4x between 2024 and 2030, generating $134 billion in annual revenue at the end of the decade. As a result, it won't be surprising to see an improvement in the adoption of CrowdStrike's cybersecurity modules by its customers, which should drive an improvement in both sales and margins. The good thing to note here is that CrowdStrike's module adoption rates have improved despite last year's incident. The company said that 48% of its customers were using six or more of its modules, while 32% were using eight or more of its offerings at the end of the previous quarter. Both numbers were up by four percentage points as compared to the year-ago period. As such, CrowdStrike could indeed clock robust earnings growth going forward and live up to analysts' expectations thanks to the huge addressable opportunity it is sitting on and its focus on product development to capture opportunities presented by catalysts such as AI. There remains one big problem for investors who are looking to buy this stock now. CrowdStrike stock has shot up 61% since the incident on July 19 last year, which means that investors have been buying this cybersecurity stock despite the drop in its earnings. As a result, the stock is now trades at an expensive 141 times forward earnings. That's well above its five-year average forward earnings multiple of 106 and the tech-laden Nasdaq-100 index's forward earnings multiple of 28 (using the index as a proxy for tech stocks). So, investors who have missed CrowdStrike's rally in the past year would do well to stay away from the stock right now, considering its expensive valuation and the expected contraction in its bottom line in fiscal 2026. Of course, the company is expected to clock healthy growth from next year, but the stock seems to have gotten ahead of itself. That's why it would be a good idea to add CrowdStrike to your watchlists and wait for a pullback in its share price so that you can buy it at a relatively attractive valuation to take advantage of the healthy growth that the company is likely to deliver in the long run. Before you buy stock in CrowdStrike, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CrowdStrike wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Nvidia. The Motley Fool has a disclosure policy. This Cybersecurity Stock Is Beating the Market in 2025. Is It Still Worth Buying Hand Over Fist? was originally published by The Motley Fool
CBS News
24-06-2025
- CBS News
Columbia University IT system outage being investigated by NYPD
Columbia University said Tuesday it was working the NYPD to investigate an outage of its IT systems on campus. "This morning, Columbia University IT systems experienced an outage affecting systems on our Morningside campus. Our IT team has been working to restore services as quickly as possible, and we have notified law enforcement," a Columbia University spokesperson said. The spokesperson said the outage did not impact clinical operations at Columbia University's Irving Medical Center. The Columbia University Spectator reported the outage began at around 7 a.m. and left students unable to log into the campus email platform, or use the service where professors post assignments for students. Check back for more on this developing story.
Irish Times
17-06-2025
- Irish Times
Man takes case against Ryanair after flight took off without his family
Almost 100 people missed a Ryanair flight from Bordeaux to Cork last July because of an Microsoft IT outage which forced the airline to revert to manual check-ins, a small claims court hearing in Balbriggan, Co Dublin was told. Some passengers who were at the airport hours before departure were classified as no-shows with Ryanair telling the court it had no obligation to cover the costs of those who made alternate arrangements to get home. The case was taken by David Hickey from Cork who told District Court Judge Stepanie Coggins that on July 19th, 2024 his family of five were due to travel from Bordeaux to Cork on a Ryanair flight departing at 9.05 am. He said they checked in online but could not check in their luggage in at the airport as a result of the IT outage which impacted airlines globally. READ MORE The flight subsequently took off leaving the Hickey family and dozens of others in the departures hall. The family made their way back to Cork via London and Mr Hickeywanted the airline to cover the cost of their return travel amounting to just under €2,000. Today was his third time travelling up from his home for the case. 'I was here on February 21st and the case was settled pending payment,' Mr Hickey told Judge Coggins. However, he subsequently received correspondence from Ryanair that - contrary to what its solicitor told him in court - it would not be settling the case. It cited concerns that his wife was also considering a claim which would take the total claim over the €2,000 limit set for the small claims court. Judge Coggins asked Mr Hickey if he could give assurances that no further claim from his wife would be lodged allowing the case to be concluded on the basis of the previously agreed settlement. Mr Hickey was given time to consult with her. When he returned to the stand he said the couple would forgo any future claim and Judge Coggins was on the verge of confirming a settlement when Ryanair's barrister Jennifer Goode JC said she had been instructed to defend the claim. 'That is not what you said earlier,' Judge Coggins said. 'I am very disappointed,' the judge continued, stressing that it was 'categorically not' the basis on which she had instructed Mr Hickey to consult with his wife. Outlining Ryanair's defence Ms Goode highlighted the airline's 'delicate' ecosystem which could be thrown off if departures were delayed to accommodate late arriving passengers or baggage. Giving evidence via video link from France, Bertram Moulet Delpech of Bordaux Airport outlined what happened last July when aviation systems crashed. He said the Cork-bound plane had taken off with only 87 of the passengers on the fully booked flight on board. Judge Coggins expressed incredulity that over 90 people 'don't get to board a flight and Ryanair think that is okay?' Ms Goode expressed sympathy to impacted passengers describing it as a 'horrible situation' but pointed to EU rules governing flights and case law highlighting the limits to which airlines can be held responsible if passengers don't get to board flights. Judge Coggins asked if there was any specific case law governing the circumstances the Hickey family were in and Ms Goode conceded there was not. 'I wouldn't like to be quoted as describing it as nit-picking but this is what is going on,' Judge Coggins said. 'This flight took off half full and people were not able to board because of software issues,' she said. She added, that people had 'incurred costs [and] the airline is saying that has nothing to do with them.' She expressed the view that 'there has to be some obligation on behalf of Ryanair' and concluded the hearing by saying she would need time to consider a ruling.
Gizmodo
20-05-2025
- Business
- Gizmodo
Delta Can Sue CrowdStrike Over Outage That Grounded Thousands of Flights, Judge Says
Delta says the biggest IT outage in history cost it $550 million last summer. Cybersecurity firm CrowdStrike has tried to limit the fallout from its global outage last summer, which wreaked havoc on airlines, financial services, and numerous other industries. When Delta Air Lines filed a lawsuit to recoup its losses, CrowdStrike tried having the case dismissed. But now a federal judge has given Delta the okay to proceed with its lawsuit over the outage, pointing out that CrowdStrike's own president admitted that it did something 'horribly wrong'. The July 2024 screwup, which has since been described as the largest IT outage in history, affected computers running on Microsoft Windows. Per CrowdStrike, it was caused by a faulty software update that passed the company's validation checks 'despite containing problematic content data.' Once the update went through, millions of devices worldwide flashed the Blue Screen of Death. CrowdStrike's outage is estimated to have cost U.S. Fortune 500 Companies $5.4 billion. But amongst airline companies, Delta was hit the hardest. Per Reuters, Delta says it cancelled 7,000 flights and accrued $550 million in lost revenue and additional costs. (Although, Delta did save $50 million on fuel from cancelling flights so, hey. That's something.) Delta filed its initial lawsuit against CrowdStrike three months after the outage. Although CrowdStrike tried to have it dismissed, Judge Kelly Lee Ellerbe of the Fulton County Superior Court ruled that Delta can try to prove CrowdStrike's gross negligence, writing, 'Delta has specifically pled that if CrowdStrike had tested the July update on one computer before its deployment, the programming error would have been detected.' In addition, Reuters reported that Ellerbe is allowing Delta to pursue a computer trespass claim because Delta states that CrowdStrike falsely promised not to add an 'unauthorized back door' into the company's computers. CrowdStrike, meanwhile, claims that Georgia 'specifically precludes Delta's efforts to recover through tort claims the economic damages it claims to have suffered,' per CNBC. In addition, CrowdStrike said that Delta was an 'outlier' that refused help and its own systems likely made the incident worse. CrowdStrikes wrote, 'Although Delta acknowledges that it took just hours — not days — for Delta employees to [fix the outage], cancellations far exceeded the flight disruptions its peer airlines experienced.' It's true that other airlines recovered faster (for example, United only cancelled about 1,500 flights). Per Fortune, one reason that Delta was hit harder is because of its heavy reliance on its Atlanta hub. In an earlier letter that CrowdStrike's lawyer, Michael Carlinsky, sent Delta denying any gross negligence, Carlinsky wrote that Delta needs to address the 'design and operational resiliency capabilities' of its IT structure. He said that if Delta 'pursue[s] this path, Delta will have to explain to the public, its shareholders, and ultimately a jury why CrowdStrike took responsibility for its actions — swiftly, transparently, and constructively — while Delta did not.' But CrowdStrike really shouldn't pat itself on the back for its response to the outage. Shortly after the incident, CrowdStrike sent out $10 apology gift cards for UberEats that didn't even work. And about a week after Carlinsky's letter to Delta, CrowdStrike's president, Michael Sentonas, attended the Pwnie Awards to accept his company's win for Most Epic Fail. 'Definitely not the award to be proud of receiving,' Sentonas said. 'I think the team was surprised when I said straight away that I'd come and get it because we got this horribly wrong…It's super important to own it when you do things horribly wrong, which we did in this case.' Sentona's acceptance speech was referenced in Ellerbe's decision where she wrote that 'its own president publicly stated that CrowdStrike did something 'horribly wrong.'' But per Reuters, Carlinsky believes that a judge will either say Delta's case has no merit or keep damages in the 'single-digit millions of dollars' region. This is a small win for Delta. But just as CrowdStrike must atone for its apparent sins, Delta has to do so, too. Earlier this month, U.S. District Judge Mark Cohen in Atlanta said that Delta must face a lawsuit from passengers who were refused full refunds for canceled flights in connection with the outage.
Daily Mail
20-05-2025
- Business
- Daily Mail
Barclays boss blames third-party software for huge IT outage earlier in the year
Barclays suffered a 'software issue' and not a cyber attack when its systems went down in January, its chief executive told MPs today. Speaking to the Treasury Select Committee this morning, Barclays boss Vim Maru apologised to customers for the IT outage on 31 January. Barclays customers experienced three days of outages, meaning they were unable to make essential transactions, including mortgage payments. The bank previously told the Committee that it expected to pay between £5million and £7.5million to customers in compensation. Maru told MPs that the issue was 'not a cyber or malicious act' and that the bank had looked into whether the issue had been because of underinvestment or because it was pay day. 'We don't find any correlation between those things,' he said. 'A software issue was the root cause. We've worked with a third-party provider that provides us with that software. 'We've learned the lessons around that, we've put a fix in place that means we won't have a recurrence. 'Looking forward, there's a further enhancement that we're making that's in the middle of implementation.' Maru said the bank had invested 'many, many tens of millions of pounds to make sure that our systems are in the right place' and that its incident levels have been dropping. It comes just weeks after M&S, Co-op and Harrods faced large-scale cyber attacks which froze critical systems. HSBC boss Ian Stuart told the Committee that cybersecurity 'does keep me awake [at night]' and 'is now very much top of the agenda' as the bank invests 'hundreds of millions'. 'We could be attacked, and we're being attacked all the time. So the defence mechanisms are critical. 'The amount of money we're all spending on our systems is absolutely enormous … it has to because our customers rely on our systems.' 33 days of unplanned outages in the past two years.
