Breakfast News: CRWD "Critical" For AI Adoption

Breakfast News: CRWD “Critical” For AI Adoption

March 4, 2026

Source: Image created by Jester AI.

1. CRWD Posts Record Headline Cash Flow

CrowdStrike’s (CRWD +0.80%) fourth quarter was boosted by demand for its cloud-based cybersecurity platform and AI-powered tools, helping lift headline free cash flow 57% compared to the previous year’s Q4 – with full-year cash flow a record at $1.24 billion. Management lifted its revenue outlook for fiscal 2027 to between $5.87 billion and $5.92 billion, after non-GAAP EPS jumped 38% year over year (YoY). The stock was little changed in early trading.

• “We find ourselves in one of the most defining times in the history of modern technology”: CEO George Kurtz spoke of AI going “from dream works to reality,” adding: “CrowdStrike is durable, mission-critical infrastructure for both securing AI and accelerating global AI adoption.”
• “CrowdStrike still struggles to produce genuinely organic free cash flow”: Fool analyst Tim Beyers noted CrowdStrike – recommended by both Team Hidden Gems and Team Rule Breakers – actually “posted -$237.5 million in FCF in fiscal 2026” once stock-based compensation, capex, and other items were accounted for.

2. Global Markets Rattled by Mideast Conflict

Despite markets being battered by fallout from events in Iran yesterday, S&P 500 futures rebounded 0.3% early this morning, with Nasdaq futures up 0.4%. Some big sell-offs hit Asian markets, with South Korea’s Kospi index recording its worst single-day fall this morning, down more than 12%.

• Brent Crude breaks above $80 per barrel: Oil prices continue their rise, despite President Trump’s promise of tanker escorts through the Strait of Hormuz. West Texas Intermediate (WTI) edged up above $76, as gold remains over $5,100 per ounce.
• “We just don’t have enough information”: SEI chief investment officer Jim Smigiel on Monday spoke to Yahoo Finance on the uncertainty over the timing and outcomes of military action, suggesting investors should “take a breath, don’t do anything major.” He sounds Foolish with a capital F, as TMF chief investment officer Andy Cross also suggests investors ought to “look for opportunities, but don’t make bold moves” in the current climate.

3. What to Watch on Wednesday

We’ll have the February ISM services reading today, forecast at 53.5%. Anything above 50% indicates expansion, and any significant dip would be read as bad news. Last month’s ADP National Employment Report is also due, with a jump in non-farm jobs of 48,000 anticipated, after a poor 22,000 the month before.

• Broadcom (AVGO 0.72%) posted a 28% revenue rise YoY in its final quarter of fiscal 2025, as AI demand drove growth in semiconductor and infrastructure for the Rule Breakers recommendation. We’ll see how the new fiscal year opens, with a Q1 update after the closing bell.
• Wix.com (WIX +1.35%) reported a 15% YoY rise in Q4 bookings this morning, with revenue in the quarter up 14% over Q4 last year. The company’s AI-powered Base44 app builder has reached over $100 million in annual recurring revenue (ARR). The Hidden Gems rec gained 7% in early trading, as management predicted mid-teens top-line growth in 2026.

4. Your Take

What stocks have you added to your portfolio in the last few weeks, and why?

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