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CrowdStrike Holdings (CRWD)
NASDAQ:CRWD

CrowdStrike Holdings (CRWD) AI Stock Analysis

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CrowdStrike Holdings

(NASDAQ:CRWD)

Rating:74Outperform
Price Target:
$533.00
▲(3.68%Upside)
CrowdStrike's strong financial performance and positive earnings call sentiment are the main contributors to the score. Technical indicators support a bullish trend, although valuation concerns due to negative earnings and lack of dividends are notable drawbacks.
Positive Factors
Financial Performance
CrowdStrike continues to perform well, with potential for top line and bottom line expansion.
Market Position
CrowdStrike is expected to outperform the HACK tracking index due to its strength.
Product Innovation
Products outside of core EDR continue to show solid growth, with Cloud Security growth accelerating and Falcon Flex adoption up 31% sequentially.
Negative Factors
Competitive Pressure
There may be a rotation between CrowdStrike and Palo Alto Networks, making it harder for CrowdStrike to deliver returns.
Growth Challenges
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.
Valuation Concerns
CrowdStrike is very expensive compared to the price target, which is a common issue across the cybersecurity sector.

CrowdStrike Holdings (CRWD) vs. SPDR S&P 500 ETF (SPY)

CrowdStrike Holdings Business Overview & Revenue Model

Company DescriptionCrowdStrike 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 MoneyCrowdStrike 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 Key Performance Indicators (KPIs)

Any
Any
Subscription Annual Recurring Revenue
Subscription Annual Recurring Revenue
Reflects the predictable revenue stream from subscriptions, highlighting customer retention and the company's ability to generate steady cash flow.
Chart InsightsCrowdStrike's Subscription ARR has shown consistent growth, reaching $4.44 billion by Q1 2025. This aligns with the company's strong performance in cloud security and identity protection, which saw nearly 50% ARR growth. Despite a slight decline in net new ARR, the company maintains high customer retention at 97%. The earnings call highlights robust free cash flow and significant marketplace achievements, though operating margin pressures persist due to strategic investments. Looking ahead, CrowdStrike anticipates continued revenue growth and improved cash flow margins, setting a solid foundation for FY 2026.
Data provided by:Main Street Data

CrowdStrike Holdings Earnings Call Summary

Earnings Call Date:Jun 04, 2025
(Q1-2026)
|
% Change Since: 11.62%|
Next Earnings Date:Sep 02, 2025
Earnings Call Sentiment Positive
The earnings call for CrowdStrike Holdings, Inc. highlighted strong growth in their FalconFlex model, robust free cash flow, and strategic partnerships with NVIDIA and Microsoft. However, challenges related to the CCP program, regulatory scrutiny, and expenses for outages were noted. The company maintains a strong position in the cybersecurity market, with continuous innovation and high customer retention.
Q1-2026 Updates
Positive Updates
Strong Start to FY2026
CrowdStrike Holdings, Inc. started FY2026 from a position of strength, capitalizing on accelerated demand through continuous innovation, increasing win rates, and platform consolidation at scale.
Growth in FalconFlex
FalconFlex added $774 million of total account value, growing 31% sequentially and more than six times year-over-year, with over 820 accounts adopting this model.
Record Subscription Gross Margin
Achieved a subscription gross margin of 80%, demonstrating the efficiency of their AI platform.
High Gross Retention Rate
Sustained 97% gross retention rate as customers remain committed to the Falcon platform.
Significant Free Cash Flow
Generated free cash flow of $279 million, or 25% of revenue, with continued quarter-on-quarter growth.
Innovations in AI and Security
Announced general availability of AI model scanning and AI security dashboard technologies, enhancing security for AI agents.
Partnership Expansion
NVIDIA and Microsoft partnerships highlight strategic collaborations, ensuring cybersecurity standards for AI and joint threat actor mapping.
Negative Updates
Challenges with CCP Program
The CCP program concluded in Q4 of FY2025 impacted revenue recognition, causing a temporary separation between ARR and subscription revenue.
Outage and Related Expenses
Q1 results were impacted by expenses for outage and related matters, totaling approximately $61 million.
Regulatory Scrutiny
CrowdStrike Holdings, Inc. received requests for information from the DOJ and SEC relating to revenue recognition and reporting of ARR for certain transactions.
Company Guidance
During CrowdStrike Holdings, Inc.'s fiscal first-quarter 2026 conference call, the company provided optimistic guidance based on several key metrics. The company reported a Q1 net new Annual Recurring Revenue (ARR) of $194 million, surpassing expectations, with an ending ARR of over $4.4 billion. The subscription gross margin stood at 80%, while the gross retention rate was sustained at 97%, indicating strong customer commitment to their Falcon platform. Additionally, CrowdStrike highlighted significant growth in their FalconFlex accounts, adding $774 million to reach a total account value of $3.2 billion, marking a 31% sequential increase and more than six times year-over-year growth. The company also emphasized the success of its next-gen SIEM, cloud, and identity products, as well as the momentum from their FalconFlex model which is accelerating platform adoption and driving increased customer engagement. Looking forward, CrowdStrike expects improved sequential net new ARR growth in Q2 and further acceleration in the second half of the fiscal year, projecting total revenue for fiscal 2026 to be between $4.74 and $4.81 billion, reflecting a growth rate of 20% to 22% over the prior fiscal year.

CrowdStrike Holdings Financial Statement Overview

Summary
CrowdStrike exhibits a strong growth trajectory with significant improvements in revenue and operational efficiency. EBITDA margins have turned positive, and cash flows are robust, showcasing strong cash generation capabilities. Balance sheet strength is supported by equity growth and manageable leverage, although net profitability remains a challenge.
Income Statement
85
Very Positive
CrowdStrike has demonstrated strong revenue growth with a consistent upward trajectory, from $874M in 2021 to $4.1B in TTM 2025. Gross profit margins are robust, consistently above 70%. However, the company is still facing net losses, although the net profit margin has been improving as losses narrow. EBITDA margins turned positive in the TTM 2025, indicating better operational efficiency.
Balance Sheet
78
Positive
The balance sheet shows a strong equity base with equity rising from $870M in 2021 to $3.45B in TTM 2025, driven by high revenue growth. The debt-to-equity ratio remains manageable. Despite negative net income in recent years, the return on equity is improving. An equity ratio of approximately 39.6% indicates a healthy financial structure.
Cash Flow
90
Very Positive
CrowdStrike's cash flow performance is impressive with strong growth in free cash flow, reaching over $1B in TTM 2025. Operating cash flow exceeds net income, showcasing solid cash generation capabilities. The free cash flow to net income ratio is particularly strong, reflecting efficient capital expenditure management and operational cash generation.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue4.14B3.95B3.06B2.24B1.45B874.44M
Gross Profit3.08B2.96B2.30B1.64B1.07B644.89M
EBITDA166.56M294.80M293.83M-40.75M-65.98M-46.17M
Net Income-172.30M-19.27M89.33M-182.28M-232.38M-92.63M
Balance Sheet
Total Assets8.72B8.70B6.65B5.03B3.62B2.73B
Cash, Cash Equivalents and Short-Term Investments4.61B4.32B3.47B2.71B2.00B1.92B
Total Debt785.40M788.90M792.87M783.62M774.72M778.99M
Total Liabilities5.23B5.38B4.31B3.54B2.58B1.86B
Stockholders Equity3.45B3.28B2.30B1.46B1.03B870.57M
Cash Flow
Free Cash Flow1.03B1.07B929.10M674.57M441.10M292.72M
Operating Cash Flow1.38B1.38B1.17B941.01M574.78M356.57M
Investing Cash Flow-587.32M-536.59M-340.65M-556.66M-564.52M495.43M
Financing Cash Flow111.86M107.21M93.16M66.48M72.53M800.13M

CrowdStrike Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price514.10
Price Trends
50DMA
458.98
Positive
100DMA
417.99
Positive
200DMA
378.12
Positive
Market Momentum
MACD
13.95
Negative
RSI
63.76
Neutral
STOCH
70.45
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 514.1 is above the 20-day moving average (MA) of 486.15, above the 50-day MA of 458.98, and above the 200-day MA of 378.12, indicating a bullish trend. The MACD of 13.95 indicates Negative momentum. The RSI at 63.76 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRWD.

CrowdStrike Holdings Risk Analysis

CrowdStrike Holdings disclosed 60 risk factors in its most recent earnings report. CrowdStrike Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

CrowdStrike Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$80.87B43.49205.91%13.83%58.13%
78
Outperform
$134.57B115.4921.16%13.91%-50.96%
74
Outperform
$128.14B721.64-5.76%25.94%-226.80%
73
Outperform
$20.06B1,777.39-5.36%35.12%-191.84%
ZSZS
72
Outperform
$49.01B-2.68%25.46%49.20%
NENET
69
Neutral
$66.30B-7.35%27.79%56.19%
56
Neutral
$7.08B5.28-5.20%5.56%8.18%-38.45%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CRWD
CrowdStrike Holdings
514.10
123.39
31.58%
FTNT
Fortinet
105.66
45.55
75.78%
PANW
Palo Alto Networks
201.82
33.00
19.55%
CYBR
CyberArk Software
398.76
125.37
45.86%
ZS
Zscaler
314.77
113.14
56.11%
NET
Cloudflare
191.27
106.39
125.34%

CrowdStrike Holdings Corporate Events

Executive/Board ChangesShareholder Meetings
CrowdStrike Holds Annual Meeting, Elects New Directors
Positive
Jun 20, 2025

On June 18, 2025, CrowdStrike Holdings, Inc. held its Annual Meeting of Stockholders where two key proposals were voted on. The election of Class III Directors saw the appointment of Cary J. Davis, George Kurtz, and Laura J. Schumacher to serve until 2028. Additionally, the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026, was ratified. These decisions are expected to impact the company’s governance and financial oversight positively.

The most recent analyst rating on (CRWD) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on CrowdStrike Holdings stock, see the CRWD Stock Forecast page.

Business Operations and Strategy
CrowdStrike Announces Strategic Workforce Restructuring Plan
Neutral
May 7, 2025

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.

Executive/Board Changes
CrowdStrike Approves CEO Compensation Package for FY 2026
Neutral
Apr 25, 2025

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.

Executive/Board Changes
CrowdStrike Approves 2026 Compensation for President
Neutral
Apr 18, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 21, 2025