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CrowdStrike Holdings (CRWD)
NASDAQ:CRWD
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CrowdStrike Holdings
(NASDAQ:CRWD)
Rating:74Outperform
Price Target:
$533.00
▲(13.91%Upside)
Positive Factors
Market Position
CrowdStrike remains a long-term market leader in cybersecurity, well positioned for the increasing platform consolidation expected in the industry, with direct exposure to AI tailwinds.
Product Strategy
CRWD's innovation-focused product strategy can continue to drive top-line momentum and competitive differentiation.
Negative Factors
Investor Expectations
High investor expectations may lead to disappointment as the stock was down after impressive Q1 results, and a similar situation may unfold during the Q2 print.
Market Valuation
With the recent run in CRWD, up approximately 60% in the past 3 months, the enterprise value now exceeds $125B, leading shares to be considered overvalued.
Valuation Concerns
The current 21x EV/2026E Sales multiple presents a sizable premium to the large cap software peer average at 12x, a premium that persists even when adjusted for growth rates.
CrowdStrike Holdings (CRWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$116.63B
Dividend YieldN/A
Average Volume (3M)2.88M
Price to Earnings (P/E)721.6
Beta (1Y)1.93
Revenue Growth25.94%
EPS Growth-226.80%
CountryUS
Employees10,118
SectorTechnology
Sector Strength91
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.73
Shares Outstanding249,248,170
10 Day Avg. Volume2,570,910
30 Day Avg. Volume2,877,588
Financial Highlights & Ratios
PEG Ratio0.76
Price to Book (P/B)34.22
Price to Sales (P/S)0.00
P/FCF Ratio115.50
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue7.44
Enterprise Value/Gross Profit37.05
Enterprise Value/Ebitda110.60
Forecast
1Y Price Target
$496.11Price Target Upside6.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering40
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
Subscription Annual Recurring Revenue
Reflects the predictable revenue stream from subscriptions, highlighting customer retention and the company's ability to generate steady cash flow.
Reflects the predictable revenue stream from subscriptions, highlighting customer retention and the company's ability to generate steady cash flow.
Data provided by:
Main Street Data
Main Street DataCrowdStrike Holdings Earnings Call Summary
Earnings Call Date:Jun 04, 2025
(Q1-2026)
| % Change Since: 1.60%|
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 significant revenue growth and improving operational efficiency, with strong cash flow generation capabilities. While net losses persist, the trend towards profitability is evident.Income Statement
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.90
Very Positive
| 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 |
| EBITDA | 294.80M | 293.83M | -40.75M | -65.98M | -46.17M |
| Net Income | -19.27M | 89.33M | -182.28M | -232.38M | -92.63M |
Balance Sheet | |||||
| Total Assets | 8.70B | 6.65B | 5.03B | 3.62B | 2.73B |
| Cash, Cash Equivalents and Short-Term Investments | 4.32B | 3.47B | 2.71B | 2.00B | 1.92B |
| Total Debt | 788.90M | 792.87M | 783.62M | 774.72M | 778.99M |
| 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 | 1.07B | 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
Neutral
467.92
Price Trends
475.06
Negative
427.34
Positive
392.99
Positive
Market Momentum
-3.45
Positive
44.89
Neutral
27.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRWD, the sentiment is Neutral. The current price of 467.92 is below the 20-day moving average (MA) of 485.66, below the 50-day MA of 475.06, and above the 200-day MA of 392.99, indicating a neutral trend. The MACD of -3.45 indicates Positive momentum. The RSI at 44.89 is Neutral, neither overbought nor oversold. The STOCH value of 27.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $116.63B | 721.64 | -5.76% | ― | 25.94% | -226.80% | |
74 Outperform | $80.23B | 43.14 | 205.91% | ― | 13.83% | 58.13% | |
74 Outperform | $135.54B | 116.32 | 21.16% | ― | 13.91% | -50.96% | |
72 Outperform | $44.56B | ― | -2.68% | ― | 25.46% | 49.20% | |
69 Neutral | $68.77B | ― | -7.35% | ― | 27.79% | 56.19% | |
66 Neutral | $19.05B | 1,777.39 | -5.36% | ― | 35.12% | -191.84% | |
63 Neutral | $34.72B | 5.19 | -11.20% | 1.67% | 5.59% | -16.73% |
* Technology Sector Average
Performance Comparison
CRWD
CrowdStrike Holdings
467.92
209.11
80.80%
FTNT
Fortinet
104.82
47.43
82.65%
PANW
Palo Alto Networks
203.27
42.24
26.23%
CYBR
CyberArk Software
378.72
120.27
46.54%
ZS
Zscaler
286.18
105.03
57.98%
NET
Cloudflare
198.42
121.05
156.46%
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.
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.