Cybersecurity company CrowdStrike (CRWD) is scheduled to announce its results for the third quarter of Fiscal 2026 on December 2. CRWD stock has rallied about 47% year-to-date, driven by solid demand for the company’s artificial intelligence (AI)-powered solutions amid rising cyber threats. Wall Street expects earnings per share (EPS) to rise 1.1% year-over-year to $0.94 and revenue to grow 20% to $1.21 billion.
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Analysts’ Views Ahead of CRWD’s Q3 Earnings
Heading into Q3 earnings, D.A. Davidson analyst Rudy Kessinger increased the price target to $580 from $515 and reiterated a Buy rating. The 4-star analyst expects the company to deliver a solid beat-and-raise. Further, he expects continued strength in net new annual recurring revenue (NNARR) to boost investor confidence that CrowdStrike will deliver the targeted 20% year-over-year growth in NNARR 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 over the near term, given that it has outperformed the iShares Expanded Tech-Software Sector ETF (IGV) by about 23% since the September Investor Day. Also, 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 these 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.
Is CRWD Stock a Buy or Sell?
Currently, Wall Street has a Moderate Buy consensus rating on CrowdStrike stock based on 27 Buys, 12 Holds, and one Sell recommendation. The average CRWD stock price target of $542.08 indicates 8.1% upside potential.
