CrowdStrike Holdings Inc (NASDAQ: CRWD) reported upbeat fourth-quarter earnings on Tuesday. Here are the key analyst insights:
- Canaccord Genuity analyst Kingsley Crane reiterated a Hold rating, while cutting the price target form $515 to $400.
- Needham analyst Mike Cikos maintained a Buy rating, while slashing the price target from $575 to $475.
- Cantor Fitzgerald analyst Jonathan Ruykhaver reaffirmed an Overweight rating and price target of $520.
- Rosenblatt Securities analyst Catharine Trebnick maintained a Buy rating and price target of $555.
- Guggenheim Securities analyst John DiFucci reiterated a Neutral rating on the stock.
With three consecutive quarters of accelerating net-new ARR growth, the company ended the year with ARR of $5.25 billion, the analyst stated. "Module adoption remains high and continues to show validation points on the single platform strategy," he further wrote.
Needham: CrowdStrike reported strong quarterly results, with 25.3% sequential growth in net-new ARR, Cikos said.
The analyst stated that CrowdStrike's emerging solutions continued to deliver strong growth:
- Cloud Security ARR grew more than 35% year-on-year, with net-new ARR accelerating for the second consecutive quarter
- Next-Gen Identity ARR accelerated to more than 34% year-on-year, from 21% two quarters back
- Next Gen SIEM ARR grew more than 75% year-on-year
Cantor Fitzgerald: CrowdStrike reported strong quarterly results, topping consensus estimates for ARR, earnings, and free cash flows, Ruykhaver said. NNARR grew 47% year-on-year to $331 million, meaningfully beating consensus of $304 million, "supported by emerging product strength, Flex, rising AI-driven threats, expanding attack vectors, and strong go-to-market execution," he wrote.
The Falcon Flex offering drove broader platform adoption and the company's overall growth, the analyst stated. With several emerging product categories still in early stages, management's NNARR growth outlook for fiscal 2027, of 20%-25%, could prove to be "a conservative starting point for the year," he added.
Rosenblatt Securities: CrowdStrike delivered an outperformance across the board, Trebnick said. The results were driven by the company's strengthening position as an AI-native security platform and "accelerated adoption across next-gen SIEM, identity, and cloud modules," she added.
Management's fiscal 2027 outlook reinforces confidence in CrowdStrike's ability to sustain more than 20% growth and free cash flow margins of at least 30%, translating to "durable profitable growth profile at scale," the analyst stated. "The increasingly complex threat landscape, amplified by GenAI-driven threats, is reinforcing the need for security consolidation," she further wrote.
Guggenheim Securities: CrowdStrike reported total revenue of $1.31 billion, subscription revenue of $1.24 billion, up 23% and ARR of $5.25 billion, with all three figures beating consensus, DiFucci said. The company guided to first-quarter total revenue of $1,362 million at the midpoint, above Street expectations of $1,354 million, he added.
CrowdStrike also projected non-GAAP earnings of $1.07 per share at the midpoint for the quarter, the analyst stated. "Management also guided FY27 total revenue to $5,897.6M (22.6% y/y) at the midpoint, above Street expectations of 21.8% y/y" and raised NNARR growth outlook from "at least 20%" to 20%-25%, he further wrote.
CRWD Price Action: Shares of CrowdStrike Holdings had risen by 0.03% to $391.56 at the time of publication on Wednesday.