AUSTIN, August 31, 2026, 11:38 (ET)
- CrowdStrike stock gained 4.0%, reaching $227.22 at 11:23 ET.
- Revenue for the fiscal second quarter rose 26% to $1.47 billion.
- The market valuation is around 40 times the midpoint of the fiscal-year revenue forecast.
- The consensus analyst price target stands at $229.31, implying an approximate upside of 0.9%.
Shares of CrowdStrike Holdings (NASDAQ: CRWD) rose 4.0% on Monday. The stock was priced at $227.22 at 11:23 ET, close to its session high.
CrowdStrike investor dashboard
NASDAQ: CRWD · Fiscal Q2 2027 results
Fundamentals: quarter ended July 31, 2026
Growth engine
Net new ARR accelerated fastest, reaching a record $332.8 million.
Valuation pressure
| FY27 revenue midpoint | $6.001bn |
| Price / guided revenue | 39.6× |
| Price / guided ARR | 35.9× |
| Annualized Q2 FCF yield | 0.6% |
| Consensus target spread | +0.9% |
The operating performance is strong; the debate is how much is already priced in.
Quarterly operating profile
| Metric | Q2 FY27 | YoY |
|---|---|---|
| Revenue | $1.471bn | +26% |
| Subscription revenue | $1.400bn | +27% |
| Free cash flow | $377.4m | +33% |
| GAAP operating margin | -2.3% | +6.8 pts |
| Non-GAAP operating margin | 25.3% | +3.5 pts |
What can break the thesis
Sales cycles can lengthen. Competition may pressure growth or pricing. Product defects and litigation tied to the July 2024 incident remain material risks.
Valuation sensitivity: high. The stock trades near the average analyst target.
Next checkpoints
| Checkpoint | Company guide | Investor read-through |
|---|---|---|
| Q3 FY27 revenue | $1.523bn–$1.529bn | Tests whether 26% growth persists |
| Q3 ending ARR | $6.184bn–$6.188bn | Measures AI-security demand conversion |
| FY27 non-GAAP operating income | $1.497bn–$1.508bn | Tests operating leverage |
Sources: CrowdStrike investor relations; Investopedia; MarketScreener; market quotes timestamped above.
The advance prolongs a post-earnings surge that saw shares jump 20% on Thursday. Robust growth in recurring revenue faces an elevated valuation.
The stock touched $233.85 for a short period on Monday, putting it near a number of recently increased analyst price targets.
| Market snapshot | August 31, 11:23 ET |
|---|---|
| Share price | $227.22 |
| Change on day | +4.0% |
| Day’s range | $217.52–$233.85 |
| Traded volume | 5.69 million shares |
| Market value | $237.4 billion |
CrowdStrike posted quarterly revenue of $1.47 billion, an increase of 26%. Annual recurring revenue rose to $5.84 billion, gaining 25% company results.
| Fiscal Q2 metric | 2027 | 2026 | Change |
|---|---|---|---|
| Revenue | $1.471bn | $1.169bn | +26% |
| Subscription revenue | $1.400bn | $1.103bn | +27% |
| Annual recurring revenue | $5.84bn | $4.67bn | +25% |
| Net new ARR | $332.8m | $220.4m | +51% |
| Free cash flow | $377.4m | $283.6m | +33% |
Net new ARR grew at a quicker pace than total ARR. Falcon Flex accounts delivered $2.29 billion in ending ARR, marking a twofold increase from the previous year.
The current valuation allows limited tolerance for reduced execution speed. Monday’s market capitalization is roughly 39.6 times the midpoint of its fiscal-year revenue forecast.
| Fiscal 2027 outlook | Guidance | Midpoint | Implied market-value multiple |
|---|---|---|---|
| Revenue | $5.991bn–$6.011bn | $6.001bn | 39.6× |
| Ending ARR | $6.603bn–$6.612bn | $6.607bn | 35.9× |
| Non-GAAP operating income | $1.497bn–$1.508bn | $1.503bn | 158× |
| Non-GAAP diluted EPS | $1.25–$1.26 | $1.255 | 181× price/earnings |
Cybersecurity peers also rose, though not as strongly. The difference indicates investors favored CrowdStrike’s individual performance.
| Security stock | Price | Daily change |
|---|---|---|
| CrowdStrike | $227.22 | up 4.0% |
| Palo Alto Networks | $376.92 | up 1.4% |
| Fortinet | $168.65 | up 1.6% |
| Zscaler | $188.27 | up 2.2% |
Analyst sentiment improved following the earnings report. Oppenheimer and UBS lifted their price targets to $250, as Morgan Stanley adjusted its target to $238 Investopedia.
The overall consensus remains more unified. Fifty-one analysts rate the stock as Buy, with an average price target of $229.31—just 0.9% higher than Monday’s closing price MarketScreener.
There was a marked increase in cash generation. However, extrapolating a single quarter’s free cash flow over the year results in a yield near 0.6% on the equity value.
Management connects demand with securing enterprise AI rollouts. Chief Executive George Kurtz described it as the company’s “largest market opportunity.”
Profit quality continues to show variation. The operating margin under GAAP was minus 2.3%, compared to a non-GAAP margin of 25.3%.
Risks: Growth may be impacted by competition, lengthy sales cycles and potential product defects. The company also references ongoing litigation and expenses related to the July 2024 incident.
The upcoming test is the October quarter. The guidance projects revenue between $1.523 billion and $1.529 billion, with ending ARR expected around $6.19 billion.
Image: CrowdStrike headquarters in Silicon Valley, captured by Coolcaesar and cropped to center. CC BY 4.0.
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