CrowdStrike Holdings (CRWD) AI Stock Analysis

• Market Cap: $110.68B
• Dividend Yield: N/A
• Average Volume (3M): 3.71M
• Price to Earnings (P/E): 721.6
• Beta (1Y): 2.01
• Revenue Growth: 29.39%
• EPS Growth: -119.62%
• Country: US
• Employees: 10,118
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Infrastructure
• EPS (TTM): 1.03
• Shares Outstanding: 249,074,070
• 10 Day Avg. Volume: 3,496,423
• 30 Day Avg. Volume: 3,706,032
• PEG Ratio: 46.49
• Price to Book (P/B): 30.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 92.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $427.36
• Price Target Upside: -3.37% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 37

CrowdStrike Holdings demonstrates strong revenue growth and cash flow generation, critical for its high-growth strategy. While profitability remains a challenge, the company's effective cost management and liquidity position it well for future growth. The technical analysis indicates positive momentum, though volatility is a factor. Despite a challenging valuation, the strong earnings call performance and outlook support a positive overall score.

Positive Factors

Guidance

CRWD expects F1Q26 results to be in-line with or above guidance and it has reaffirmed its FY26 guidance.

Innovation

CRWD has gone from 3 modules in 2016 to 29 modules today, demonstrating strong innovation and growth.

Platform Leadership

CRWD is emerging as the cleanest platform play across the security software space.

Negative Factors

Revenue Productivity

CRWD's revenue-per-employee was down ~1.9% y/y, which is only the second y/y decline on record, adding pressure to deliver productivity gains.

Valuation Concerns

CRWD shares traded down ~4% pre-market, indicating investors are concerned about valuation premium, macro uncertainty, and potential execution risks.

Workforce Reduction

CRWD announced a strategic plan which includes a reduction in workforce by 500 positions, approximately 5% of CRWD's workforce.

CrowdStrike Holdings Business Overview & Revenue Model

Company Description

CrowdStrike Holdings, Inc. provides cloud-delivered protection across endpoints and cloud workloads, identity, and data. It offers threat intelligence, managed security services, IT operations management, threat hunting, Zero Trust identity protection, and log management. The company primarily sells subscriptions to its Falcon platform and cloud modules through its direct sales team that leverages its network of channel partners. It serves customers worldwide. The company was incorporated in 2011 and is based in Austin, Texas.

How the Company Makes Money

CrowdStrike makes money primarily through the sale of its subscription-based cybersecurity products and services. The company's key revenue stream is its cloud-native Falcon platform, which offers various modules for endpoint protection, threat intelligence, and IT security operations. Customers subscribe to these modules on a recurring basis, providing CrowdStrike with a steady stream of subscription revenue. Additionally, the company generates income from professional services, including incident response and proactive services, which help organizations manage and mitigate cyber threats. Significant partnerships with technology providers and system integrators also contribute to its earnings by expanding its market reach and enhancing its product offerings.

CrowdStrike Holdings Financial Statement Overview

Summary

CrowdStrike Holdings exhibits strong revenue growth and cash flow generation, crucial for a high-growth software company. Despite current negative profitability metrics, the company is nearing profitability with effective cost management and strong liquidity. While profitability is a concern, the balance sheet is healthy with manageable leverage, positioning the company well for future growth.

Income Statement

CrowdStrike Holdings shows a strong revenue growth trend with a TTM revenue of $3.95 billion, up significantly from $3.06 billion last year. The gross profit margin remains robust at 74.9%, indicating effective cost management despite a negative net profit margin of -0.5%. The company is close to breakeven, showcasing potential for future profitability. However, EBIT and EBITDA margins are low due to negative EBIT, which suggests ongoing operational challenges.

Balance Sheet

The balance sheet reflects strong liquidity, with cash and short-term investments exceeding total debt, leading to a negative net debt position. The equity ratio stands at 37.7%, indicating a solid equity foundation. However, the debt-to-equity ratio is 24.1%, suggesting moderate leverage. The return on equity is negative due to a net loss, highlighting the need for improved profitability to enhance shareholder value.

Cash Flow

Cash flow performance is robust, with a strong operating cash flow of $1.38 billion in TTM. Free cash flow has grown significantly from the previous year, indicating effective cash management. The operating cash flow to net income ratio shows efficient conversion of earnings into cash. The company maintains a healthy free cash flow to net income ratio, underscoring its ability to generate cash despite net losses.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.95B	3.06B	2.24B	1.45B	874.44M
	Gross Profit
2.96B	2.30B	1.64B	1.07B	644.89M
	EBIT
-120.43M	-2.00M	-190.11M	-142.55M	-92.53M
	EBITDA
294.80M	293.83M	-40.75M	-65.98M	-46.17M
	Net Income Common Stockholders
-19.27M	89.33M	-182.28M	-232.38M	-92.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.32B	3.47B	2.71B	2.00B	1.92B
	Total Assets
8.70B	6.65B	5.03B	3.62B	2.73B
	Total Debt
788.90M	792.87M	783.62M	774.72M	778.99M
	Net Debt
-3.53B	-2.58B	-1.67B	-1.22B	-1.14B
	Total Liabilities
5.38B	4.31B	3.54B	2.58B	1.86B
	Stockholders Equity
3.28B	2.30B	1.46B	1.03B	870.57M
Cash Flow		Free Cash Flow
1.13B	929.10M	674.57M	441.10M	292.72M
	Operating Cash Flow
1.38B	1.17B	941.01M	574.78M	356.57M
	Investing Cash Flow
-536.59M	-340.65M	-556.66M	-564.52M	495.43M
	Financing Cash Flow
107.21M	93.16M	66.48M	72.53M	800.13M

CrowdStrike Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 442.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRWD, the sentiment is Positive. The current price of 442.25 is above the 20-day moving average (MA) of 429.59, above the 50-day MA of 388.58, and above the 200-day MA of 344.53, indicating a bullish trend. The MACD of 14.47 indicates Positive momentum. The RSI at 60.50 is Neutral, neither overbought nor oversold. The STOCH value of 86.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRWD.

CrowdStrike Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTNT	80 Outperform	$80.18B	43.12	205.91%	―	13.83%	58.13%
CRWD	76 Outperform	$110.68B	721.64	-0.69%	―	29.39%	-119.62%
PANW	74 Outperform	$128.65B	109.87	21.16%	―	13.86%	-46.44%
ZS	74 Outperform	$39.08B	―	-1.21%	―	27.77%	89.39%
CYBR	72 Outperform	$17.28B	1,777.39	-5.36%	―	35.12%	-191.84%
NET	72 Outperform	$54.60B	―	-7.35%	―	27.79%	56.19%
Sector *	60 Neutral	$11.59B	10.34	-7.15%	2.94%	7.49%	-10.88%

CrowdStrike Holdings Corporate Events

CrowdStrike Announces Strategic Workforce Restructuring Plan

On May 6, 2025, CrowdStrike Holdings announced a strategic plan to enhance operational efficiency and scale its business towards a $10 billion ARR target. This plan involves reducing approximately 500 positions, or 5% of its global workforce, while continuing to hire in key strategic areas. The company anticipates incurring charges between $36 million and $53 million related to severance and stock-based compensation, with most actions expected to be completed by the end of the second quarter of fiscal 2026. This restructuring aims to streamline operations and capitalize on AI-driven efficiencies, positioning CrowdStrike as a leader in the evolving cybersecurity landscape.

Spark’s Take on CRWD Stock

According to Spark, TipRanks’ AI Analyst, CRWD is a Outperform.

CrowdStrike Holdings demonstrates strong revenue growth and cash flow generation, critical for its high-growth strategy. While profitability remains a challenge, the company’s effective cost management and liquidity position it well for future growth. The technical analysis indicates positive momentum, though volatility is a factor. Despite a challenging valuation, the strong earnings call performance and outlook support a positive overall score.

To see Spark’s full report on CRWD stock, click here.

CrowdStrike Approves CEO Compensation Package for FY 2026

On April 23, 2025, CrowdStrike Holdings‘ Board of Directors approved the fiscal year 2026 compensation package for CEO George Kurtz, effective February 1, 2025. His annual base salary is set at $1,100,000 with a target incentive compensation award of 135%, aligning with the company’s Corporate Incentive Plan.

Spark’s Take on CRWD Stock

According to Spark, TipRanks’ AI Analyst, CRWD is a Outperform.

CrowdStrike Holdings demonstrates strong revenue growth and cash flow generation, critical for its high-growth strategy. While profitability remains a challenge, the company’s effective cost management and liquidity position it well for future growth. The technical analysis indicates positive momentum, though volatility is a factor. Despite a challenging valuation, the strong earnings call performance and outlook support a positive overall score.

To see Spark’s full report on CRWD stock, click here.

CrowdStrike Approves 2026 Compensation for President

On April 9 and April 16, 2025, CrowdStrike Holdings‘ Board of Directors approved the compensation package for fiscal year 2026 for President Michael Sentonas. Effective February 1, 2025, his annual base salary is set at $875,000 with a target incentive compensation award of 100%, under the terms of the company’s Corporate Incentive Plan.

Spark’s Take on CRWD Stock

According to Spark, TipRanks’ AI Analyst, CRWD is a Outperform.

CrowdStrike Holdings is positioned strongly due to robust revenue growth, cash flow generation, and a healthy balance sheet. Despite negative profitability and valuation concerns, the company’s strong earnings call and positive growth outlook contribute positively to the score. Technical indicators point to some near-term volatility, but the overall growth trajectory remains favorable.

To see Spark’s full report on CRWD stock, click here.

CrowdStrike Announces Retirement of Chief Security Officer

On February 14, 2025, CrowdStrike Holdings announced that Shawn Henry, the current Chief Security Officer, will retire from his role and as an executive officer effective March 31, 2025. He will transition to an Executive Advisor to the CEO, focusing on cybersecurity advocacy, which signals a strategic shift in leadership and could impact the company’s operational focus and stakeholder relations.