CrowdStrike (CRWD) stock slid over 5% on Thursday after Fortinet (FTNT) reported disappointing Q2 earnings and warned of slower firewall demand. The weak results triggered a broader selloff in cybersecurity stocks, raising fresh questions about the sector’s near-term growth. Despite the pullback, CrowdStrike’s long-term outlook remains strong, and the latest dip may offer a buying opportunity for investors betting on the future of cloud security.
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However, CrowdStrike wasn’t alone in the downturn. Shares of Palo Alto Networks (PANW), Zscaler (ZS), and SentinelOne (S) also dropped, falling between 3% and 7% as Fortinet’s downbeat outlook triggered a wave of selling across the sector.
The selloff appeared to be more about sector sentiment than any fundamental weakness at CrowdStrike.
Is There Upside from Here?
At about $427.90, CrowdStrike is up 29% in 2025, but still trades well below its 52-week high of $514.10. The company continues to expand its cloud-native Falcon platform, which protects endpoints, identities, and workloads. Also, its customer base is growing steadily, supported by strong renewal rates and cross-selling momentum across modules.
Recently, Cantor Fitzgerald’s Top analyst Jonathan Ruykhaver maintained a Buy rating on CRWD and kept his price target at $475. The five-star analyst expects growth to rebound in the second half of the year, expecting net new annual recurring revenue (NNARR) to rise 8% year-over-year to $870 million in FY26.
Ruykhaver believes near-term growth will benefit from improved pricing, easier year-over-year comparisons, and the rollout of new partner incentives. However, he also flagged potential risks. Slower adoption of newer products or delays in scaling partner sales efforts could weigh on performance, particularly given CrowdStrike’s premium valuation.
What’s Next for CRWD
CrowdStrike is scheduled to report its fiscal Q2 FY26 earnings after the U.S. market closes on August 27, 2025. Analysts expect the company to report earnings of $0.83 per share, representing a 20% decline year-over-year. Meanwhile, revenues are expected to grow by 19% from the year-ago quarter to $1.15 billion, according to data from the TipRanks Forecast page.
Is CRWD Stock a Good Buy?
With 33 Buys, four Holds, and one Sell recommendation, CrowdStrike scores a Moderate Buy consensus rating on TipRanks. The average CRWD stock price target of $496.11 implies an upside potential of about 16.73% from current levels.
