Cybersecurity company CrowdStrike Holdings (CRWD) delivered better-than-expected results for the second quarter of Fiscal 2026. However, CRWD stock declined 4.3% in Wednesday’s extended trading session, as investors were disappointed with the revenue guidance for the current quarter. While some analysts noted the guidance miss but reiterated their bullish stance on CrowdStrike’s long-term growth potential, others remain cautious on the stock.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Analysts React to CrowdStrike’s Q2 Earnings and Subdued Outlook
Following the Q2 print, D.A. Davidson analyst Rudy Kessinger lowered the price target for CrowdStrike Holdings stock to $490 from $530 and reiterated a Buy rating. The 4-star analyst noted that CRWD’s Q2 annual recurring revenue (ARR) of $4.66 billion beat the consensus estimate. Kessinger added that the growth in the Flex offering, large deals, and non-Endpoint Detection and Response (EDR) modules was very strong.
While Q3 FY26 ARR outlook was well ahead of consensus expectations, Kessinger highlighted that revenue guidance was a “bit light,” as the impact of customer commitment packages (CCP) continues to create a near-term divergence in ARR and revenue growth, which he thinks should abate in FY27. Keeping this shortcoming aside, Kessinger believes that CrowdStrike delivered strong results and outlook.
Meanwhile, Baird analyst Shrenik Kothari stated that CrowdStrike delivered a solid beat across ARR, free cash flow, and operating margin. However, he noted that CRWD stock declined due to a lighter-than-expected Q3 revenue outlook despite expectations of more than 22% ARR growth. Kothari pointed out the $10 million to $15 million impact of CCP partner rebates and a wider-than-usual range for professional services (indicating potential variability in this business) on subscription revenue.
Nonetheless, Kothari thinks that the setup for the second half of the year remains strong, with management guiding +40% net new ARR (NNARR) growth, citing easing comparisons and an improving pipeline. That said, the 5-star analyst maintained a Hold rating on CrowdStrike stock with a price target of $460, as he believes that valuation multiples remain elevated and “prudence is warranted,” pending incremental disclosures from the upcoming “Fal.Con” event.
What Is the Price Target for CrowdStrike Stock?
Overall, Wall Street has a Moderate Buy consensus rating on CrowdStrike stock based on 26 Buys and 14 Holds. The average CRWD stock price target of $494.18 indicates about 17% upside potential.
However, these ratings/price targets could change as more analysts are expected to review the results and outlook.
