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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on CRWD

CrowdStrike Holdings, Inc.'s recent performance was driven by optimism following its investor day, where the company issued long-term guidance exceeding analyst expectations. The projected net new Annual Recurring Revenue (ARR) growth of at least 20% in fiscal year 2027 and a target of $10 billion in ARR by FY2031 fueled growth momentum. Additionally, strong demand for its Falcon Flex and Next-Gen SIEM products contributed to the growth. A recent partnership with CoreWeave and an analyst upgrade by Robert W. Baird, raising the price target from $490 to $550, also supported the performance.

1.c. Company Highlights

2. CrowdStrike's Q3 2026 Earnings: A Record Quarter Driven by AI and Cybersecurity Demand

CrowdStrike Holdings, Inc. reported an exceptional third quarter, with revenue growing 22% year-over-year to $1.23 billion, and subscription revenue increasing 21% to $1.17 billion. The company's non-GAAP operating income was a record $264.6 million, with an operating margin of 21%. Earnings per share (EPS) came in at $0.96, beating estimates of $0.939. The strong financial performance was driven by a robust demand environment, with net new ARR growth accelerating to 73% year-over-year, and ending ARR reaching $4.92 billion, up 23% from the previous year.

Publication Date: Dec -04

📋 Highlights
  • Record Net New ARR:: Generated $265M net new ARR, up 73% YoY, surpassing expectations by over 10% with ending ARR reaching $4.92B (+23% YoY).
  • Strong Cash Flow & Profitability:: Achieved $296M free cash flow (24% of revenue) and $265M operating income (21% of revenue), both all-time highs.
  • Strategic Partnerships:: Expanded AWS collaboration, enabling Falcon NextGen SIEM for millions of AWS customers, and secured an 8-figure deal with a leading Neo cloud partner.
  • Product Growth Drivers:: Falcon Shield delivered 50% sequential ARR growth, while Identity (PAM) and AI-driven endpoint solutions accelerated adoption amid legacy AV displacement.
  • Revenue & Guidance:: Q3 revenue hit $1.23B (+22% YoY), with FY2026 revenue guidance of $4.797B–$4.807B (21–22% growth), reflecting robust demand and pipeline.

Growth Drivers

The growth is driven by market forces such as AI transformations, expanding attack surfaces, and the need for a single platform solution. CrowdStrike is well-positioned as the operating system of cybersecurity for the Agentic era, with its single console, single data back end, and single sensor, AgenTeq Hyperscale platform. The company has made significant partnerships, including an expanded partnership with AWS, making Falcon NextGen SIEM available to millions of AWS customers.

Partnerships and New Deals

CrowdStrike won large deals, including a 7-figure expansion deal with a Fortune 500 logistics company and an 8-figure transaction with a leading Neo cloud. The partnership with AWS continues to grow, with CrowdStrike announced as AWS's global security partner of the year and AWS's global marketplace partner of the year.

Valuation Metrics

With a P/S Ratio of 28.61, the market is pricing in high growth expectations for CrowdStrike. The EV/EBITDA ratio is negative due to the company's negative EBITDA, but the P/E Ratio is also negative, indicating that the market is expecting future growth. Analysts estimate next year's revenue growth at 22.2%, which is slightly higher than the company's guidance. Given the high valuation multiples, it's essential to monitor the company's ability to deliver on its growth promises.

AI and Identity Business

The company believes AI represents its largest opportunity and demand driver yet, and is using AI to revolutionize cybersecurity. The identity business has seen significant growth, with the launch of PAM and Falcon Shield offerings. Falcon Shield had a record net new ARR quarter, growing nearly 50% sequentially.

Future Outlook

For Q4, the company expects total revenue to be in the range of $1.29 to $1.3 billion, reflecting a year-over-year growth rate of 22 to 23%. For the full fiscal year of 2026, the company expects total revenue to be in the range of $4.797 to $4.807 billion, reflecting a growth rate of 21 to 22% over the prior fiscal year.

3. NewsRoom

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The Big 3: CRM, CRWD, NET

Dec -04

Source: youtube.com

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CrowdStrike Enters Mature Phase While Zscaler Accelerates With AI Security Acquisitions

Dec -04

Source: 247wallst.com

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CrowdStrike Reports Strong Results. But Shares Are Overvalued.

Dec -04

Source: fool.com

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Wall Street Punished CrowdStrike for Beating Earnings? Seriously?

Dec -03

Source: marketbeat.com

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CRWD Security "Bellwether," Cybersecurity "Must for Companies to Survive"

Dec -03

Source: youtube.com

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CrowdStrike Holdings, Inc. (CRWD) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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CrowdStrike Stock Slips After Earnings Despite Record ARR Growth And Raised Guidance

Dec -03

Source: feeds.benzinga.com

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Dow Jones Today: Stocks Turn Higher as Investors Downplay Private Payrolls Decline, Report Microsoft Cutting AI Software Sales Quotas

Dec -03

Source: investopedia.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (35.00%)

6. Segments

Security Software & Services

Expected Growth: 37.0%

The Security Software & Services segment is expected to grow at a rate slightly above the global revenue growth hypothesis due to its strong market position, innovative products, and increasing demand for cloud-delivered security solutions. The segment's ability to adapt to evolving cyber threats and expand its customer base will drive its growth, outpacing the global average. The growth rate is also influenced by the increasing adoption of cloud-based security solutions.

7. Detailed Products

Falcon Endpoint Protection

A cloud-based endpoint security solution that provides real-time threat detection, prevention, and response.

Falcon Intelligence

A threat intelligence solution that provides real-time threat data, analysis, and insights to help organizations stay ahead of emerging threats.

Falcon Overwatch

A managed threat hunting service that provides 24/7 monitoring and response to advanced threats.

Falcon Spotlight

A vulnerability management solution that provides real-time vulnerability detection and prioritization.

Falcon Discover

A cloud-based IT hygiene solution that provides real-time visibility into endpoint configurations and vulnerabilities.

CrowdStrike Falcon XDR

A cloud-based extended detection and response solution that provides real-time threat detection and response across endpoints, networks, and clouds.

8. CrowdStrike Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CrowdStrike Holdings, Inc. has a low threat of substitutes due to its unique cloud-based endpoint security platform, which provides advanced threat detection and prevention capabilities.

Bargaining Power Of Customers

CrowdStrike Holdings, Inc. has a medium bargaining power of customers due to the presence of large enterprises and government agencies as its customers, which can negotiate prices and terms.

Bargaining Power Of Suppliers

CrowdStrike Holdings, Inc. has a low bargaining power of suppliers due to its ability to develop its own technology and intellectual property, reducing its dependence on external suppliers.

Threat Of New Entrants

CrowdStrike Holdings, Inc. has a high threat of new entrants due to the growing demand for cybersecurity solutions and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

CrowdStrike Holdings, Inc. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 24.72%
Debt Cost 4.40%
Equity Weight 75.28%
Equity Cost 9.32%
WACC 8.11%
Leverage 32.84%

11. Quality Control: CrowdStrike Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Oracle

A-Score: 4.9/10

Value: 2.2

Growth: 6.8

Quality: 6.0

Yield: 2.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Zscaler

A-Score: 4.9/10

Value: 2.0

Growth: 8.4

Quality: 4.6

Yield: 0.0

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
CrowdStrike

A-Score: 4.8/10

Value: 2.0

Growth: 8.8

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Fortinet

A-Score: 4.8/10

Value: 0.8

Growth: 9.1

Quality: 8.5

Yield: 0.0

Momentum: 5.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Adobe

A-Score: 4.7/10

Value: 3.0

Growth: 7.7

Quality: 9.0

Yield: 0.0

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Synopsys

A-Score: 3.7/10

Value: 0.9

Growth: 7.3

Quality: 7.2

Yield: 0.0

Momentum: 3.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

513.12$

Current Price

513.12$

Potential

-0.00%

Expected Cash-Flows