“Time to Tap the Brakes,” Says Top Analyst After CrowdStrike’s Q1 Results

Cybersecurity firm CrowdStrike Holdings (CRWD) reported its first-quarter results for Fiscal 2026, but the numbers didn’t quite meet investor expectations. The stock fell more than 6% in after-hours trading. While earnings per share came in at $0.73, above Wall Street’s forecast of $0.66, revenue slightly missed estimates, landing at $1.10 billion. What really sparked concern was the company’s second-quarter revenue outlook, which missed analyst targets, reflecting near-term growth prospects.

Reacting to the results, Evercore ISI analyst Peter Levine downgraded the stock from Buy to Neutral and trimmed his price target from $450 to $440. Although the Top analyst still sees long-term potential in CrowdStrike’s business, he believes the stock offers limited upside in the near term.

Evercore Downgrades CRWD over Lingering Revenue Concerns

The five-star analyst called CrowdStrike’s latest quarter “solidly executed,” but not particularly impressive due to near-term revenue concerns. He flagged accounting complications tied to the company’s new partner incentive program as a key issue. These incentives, including cash rebates for partners, are recorded as contra-revenue, which temporarily reduces reported revenue, even though customer demand remained strong.

Levine explained that while the company’s annual recurring revenue (ARR) wasn’t affected, these accounting adjustments could create a $47 million drag on revenue for the full year or about $12.5 million each quarter.

The analyst also pointed to the company’s weak Q2 guidance and said that these “one-time events” could make it harder to rely on near-term growth. He also noted the absence of any clear near-term catalyst that could drive the stock meaningfully higher.

Is CRWD Stock a Good Buy?

With 33 Buys, four Holds, and one Sell recommendation, CrowdStrike scores a Strong Buy consensus rating on TipRanks. The average CRWD stock price target of $443.63 implies a downside risk of about 9.23% from current levels.

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