CrowdStrike (CRWD) is scheduled to announce its results for the third quarter of Fiscal 2026 on December 2. Shares of the cybersecurity company have risen 49% year-to-date, driven by the strong demand for its artificial intelligence (AI)-powered solutions amid rising cyber threats. According to TipRanks’ Options Tool, options traders expect about a 7.55% move in either direction in CRWD stock in reaction to Q3 FY26 results. This implied move is higher than CRWD stock’s average post-earnings move (in absolute terms) of 4.01% over the past four quarters.
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Wall Street expects CrowdStrike’s Q3 FY26 earnings per share (EPS) to rise 1.1% year-over-year to $0.94 and revenue to grow 20% to $1.21 billion.
Analysts’ Views Ahead of CRWD’s Q3 Earnings
Heading into Q3 earnings, D.A. Davidson analyst Rudy Kessinger raised the price target for CrowdStrike stock to $580 from $515 and reiterated a Buy rating. The 4-star analyst expects the company to deliver a solid beat-and-raise. Further, Kessinger expects continued strength in net new annual recurring revenue (NNARR) to boost investor confidence about CrowdStrike’s ability to achieve its 20% year-over-year NNARR growth target in Fiscal 2027.
While Kessinger raised his price target to reflect his optimism about CrowdStrike’s long-term growth story, he is not sure if Q3 results will drive the stock higher in the near term, given that it has outperformed the iShares Expanded Tech-Software Sector ETF (IGV) since the September Investor Day. Also, the analyst noted that CRWD’s valuation remains elevated compared to peers.
Meanwhile, Guggenheim analyst John DiFucci reiterated a Hold rating on CrowdStrike stock. While the analyst sees risk to the company’s Q3 and full-year Fiscal 2026 overall revenue, he thinks that ARR expectations seem achievable for both periods. DiFucci’s field checks this quarter and pipeline expectations continue to “lean more positive.” The 5-star analyst added that based on his discussions with partners, it is clear that CrowdStrike remains the dominant player, with traction for Falcon Flex gaining steam.
DiFucci sees a significant opportunity for CRWD to penetrate the U.S. Federal government vertical and boost its revenue, though as of now, new ARR from this source is less than 1% of his “Plausible” new ARR estimate for the quarter. Despite several positives, DiFucci is neutral on CRWD stock due to valuation concerns. He highlighted that CRWD stock is trading at 24x Enterprise Value (EV)/NTM (next 12 months) subscription revenue and more than 100x his EV/NTM free cash flow, one of the highest multiples in his coverage.
AI Analyst Is Cautious on CRWD Stock Ahead of Q3 Print
Interestingly, TipRanks’ AI Analyst has assigned a Neutral rating to CrowdStrike’s stock with a price target of $527, indicating 3.5% upside potential. The AI analyst’s rating is based on CRWD’s earnings call insights and strong cash flow generation, offset by ongoing profitability challenges and a negative P/E multiple. Also, technical indicators suggest mixed momentum.
Is CRWD Stock a Buy or Sell?
Currently, Wall Street has a Moderate Buy consensus rating on CrowdStrike stock based on 24 Buys, 12 Holds, and one Sell recommendation. The average CRWD stock price target of $545.29 indicates 7.1% upside potential.
