CrowdStrike Holdings (CRWD) AI Stock Analysis

• Market Cap: $119.79B
• Dividend Yield: N/A
• Average Volume (3M): 3.92M
• Price to Earnings (P/E): 721.6
• Beta (1Y): 1.94
• Revenue Growth: 25.94%
• EPS Growth: -226.80%
• Country: US
• Employees: 10,118
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Infrastructure
• EPS (TTM): 0.73
• Shares Outstanding: 249,248,170
• 10 Day Avg. Volume: 5,118,541
• 30 Day Avg. Volume: 3,922,359
• PEG Ratio: 5.02
• Price to Book (P/B): 17.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.04K
• Enterprise Value/Market Cap: 0.11
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 3.78
• Enterprise Value/Ebitda: 12.12
• 1Y Price Target: $489.76
• Price Target Upside: 1.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 36

• Rating: 79 Outperform
• Price Target: $527.00 ▲(9.65%Upside)

CrowdStrike's overall stock score is primarily driven by its strong financial performance and positive earnings call. The company's revenue growth, cash flow generation, and strategic partnerships highlight its potential for future success. However, valuation concerns and challenges with profitability slightly temper the outlook.

Positive Factors

Financial Performance

Non-GAAP OPI & FCF were both better than expected & guidance raised with management confident in FCF visibility driven by large flex deals.

Platform Expansion

Falcon Flex momentum is building—helping land platform-wide expansions, with more than 70% of net new logos landing via Flex.

Product Growth

Products outside of core EDR continue to show solid growth, with Cloud Security growth accelerating and Falcon Flex adoption up +31% sequentially.

Negative Factors

Growth Deceleration

Growth has decelerated to below 20% in 1H26, and while acceleration to about 22% is expected in 2H, growth will decelerate in the next few years, hence the growing focus on valuation.

Revenue Challenges

F1Q subscription revenue of approximately $1.05B fell short of consensus expectations due to the CCP program.

Valuation Concerns

CrowdStrike is very expensive compared to the price target, which is a common issue across the cybersecurity sector.

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 subscription-based services for its cybersecurity products. The company's key revenue stream is its Falcon platform, which operates under a Software-as-a-Service (SaaS) model. Customers pay recurring fees for access to CrowdStrike's suite of cybersecurity solutions, which include endpoint protection, threat intelligence, and proactive threat hunting services. Additionally, CrowdStrike offers professional services for incident response and security assessments, which contribute to its revenue. The company's growth is also supported by strategic partnerships and collaborations with other technology providers, 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 capabilities, which are critical for a high-growth software company. The balance sheet is healthy with manageable leverage and strong equity. While profitability metrics are currently negative, the company is on a trajectory towards profitability with effective cost management and liquidity.

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
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
4.14B	3.95B	3.06B	2.24B	1.45B	874.44M
	Gross Profit
3.37B	2.96B	2.30B	1.64B	1.07B	644.89M
	EBIT
-252.02M	-120.43M	-2.00M	-190.11M	-142.55M	-92.53M
	EBITDA
185.68M	294.80M	293.83M	-40.75M	-65.98M	-46.17M
	Net Income Common Stockholders
-62.09M	-19.27M	89.33M	-182.28M	-232.38M	-92.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.61B	4.32B	3.47B	2.71B	2.00B	1.92B
	Total Assets
8.72B	8.70B	6.65B	5.03B	3.62B	2.73B
	Total Debt
785.40M	788.90M	792.87M	783.62M	774.72M	778.99M
	Net Debt
-3.83B	-3.53B	-2.58B	-1.67B	-1.22B	-1.14B
	Total Liabilities
5.23B	5.38B	4.31B	3.54B	2.58B	1.86B
	Stockholders Equity
3.45B	3.28B	2.30B	1.46B	1.03B	870.57M
Cash Flow		Free Cash Flow
1.08B	1.13B	929.10M	674.57M	441.10M	292.72M
	Operating Cash Flow
1.38B	1.38B	1.17B	941.01M	574.78M	356.57M
	Investing Cash Flow
-587.32M	-536.59M	-340.65M	-556.66M	-564.52M	495.43M
	Financing Cash Flow
111.86M	107.21M	93.16M	66.48M	72.53M	800.13M

CrowdStrike Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 480.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 480.62 is above the 20-day moving average (MA) of 463.13, above the 50-day MA of 424.59, and above the 200-day MA of 362.90, indicating a bullish trend. The MACD of 14.14 indicates Positive momentum. The RSI at 62.14 is Neutral, neither overbought nor oversold. The STOCH value of 75.13 is Neutral, 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
PANW	81 Outperform	$130.87B	112.31	21.16%	―	13.91%	-50.96%
FTNT	80 Outperform	$77.18B	41.50	205.91%	―	13.83%	58.13%
CRWD	79 Outperform	$119.79B	721.64	-5.76%	―	25.94%	-226.80%
NET	74 Outperform	$59.61B	―	-7.35%	―	27.79%	56.19%
CYBR	73 Outperform	$19.45B	1,777.39	-5.36%	―	35.12%	-191.84%
ZS	72 Outperform	$47.01B	―	-2.68%	―	25.46%	49.20%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%

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.

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.

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.