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CrowdStrike Delivers Record Results But Investors Aren't Impressed

MarketDash Editorial Team
4 days ago
CrowdStrike crushed earnings expectations with record ARR growth and raised guidance, but shares slipped anyway as investors digest the cybersecurity giant's recovery path.

CrowdStrike Holdings, Inc. (CRWD) reported third quarter results Tuesday after the close, and the market's reaction was basically a shrug. Shares traded roughly flat Wednesday before dipping slightly, despite what looked like a pretty solid quarter on paper.

The Numbers That Matter: CrowdStrike delivered adjusted earnings of 96 cents per share, topping the 94-cent consensus. Revenue came in at $1.23 billion, beating estimates of $1.21 billion. Not a bad start.

But here's where things get interesting. The company posted record net new annual recurring revenue of $265 million—a 73% jump year-over-year. Total ARR closed the quarter at $4.92 billion, up 23% from last year. Cash flow looked healthy too, with operating cash flow hitting a record $398 million and free cash flow reaching $296 million.

Management highlighted strength across the board—endpoint security, cloud security, next-gen identity solutions, and their next-gen SIEM platform all performed well. The company's Falcon Flex subscription model continues to gain traction, now representing more than $1.35 billion in ARR, up over 200% year-over-year.

Looking Ahead: For Q4, CrowdStrike expects adjusted earnings between $1.09 and $1.11 per share, slightly above the $1.08 consensus. Revenue guidance landed at $1.29 billion to $1.30 billion, right in line with analyst expectations of $1.29 billion.

The company also raised its full-year fiscal 2026 outlook. Adjusted EPS guidance moved from $3.60-$3.72 to $3.70-$3.72, compared to consensus of $3.67. Revenue guidance increased from $4.75-$4.80 billion to $4.79-$4.80 billion, versus the $4.78 billion consensus.

Wall Street Weighs In: Following the earnings release, several analysts adjusted their price targets on CrowdStrike:

  • Needham analyst Mike Cikos maintained a Buy rating and lifted his price target from $535 to $575.
  • JP Morgan analyst Brian Essex kept an Overweight rating and raised his target from $580 to $582.
  • BMO Capital analyst Keith Bachman maintained an Outperform rating with a new price target of $555, up from $500.
  • Scotiabank analyst Patrick Colville stuck with a Sector Outperform rating and increased his target from $600 to $613.
  • Canaccord Genuity analyst Kingsley Crane maintained a Hold rating and raised his price target from $500 to $515.

The Bottom Line: At last check, CrowdStrike shares were trading 1.1% lower at $510.75, suggesting investors might be waiting for more evidence of sustained momentum before getting excited again.

Back to News

CrowdStrike Delivers Record Results But Investors Aren't Impressed

MarketDash Editorial Team
4 days ago
CrowdStrike crushed earnings expectations with record ARR growth and raised guidance, but shares slipped anyway as investors digest the cybersecurity giant's recovery path.

CrowdStrike Holdings, Inc. (CRWD) reported third quarter results Tuesday after the close, and the market's reaction was basically a shrug. Shares traded roughly flat Wednesday before dipping slightly, despite what looked like a pretty solid quarter on paper.

The Numbers That Matter: CrowdStrike delivered adjusted earnings of 96 cents per share, topping the 94-cent consensus. Revenue came in at $1.23 billion, beating estimates of $1.21 billion. Not a bad start.

But here's where things get interesting. The company posted record net new annual recurring revenue of $265 million—a 73% jump year-over-year. Total ARR closed the quarter at $4.92 billion, up 23% from last year. Cash flow looked healthy too, with operating cash flow hitting a record $398 million and free cash flow reaching $296 million.

Management highlighted strength across the board—endpoint security, cloud security, next-gen identity solutions, and their next-gen SIEM platform all performed well. The company's Falcon Flex subscription model continues to gain traction, now representing more than $1.35 billion in ARR, up over 200% year-over-year.

Looking Ahead: For Q4, CrowdStrike expects adjusted earnings between $1.09 and $1.11 per share, slightly above the $1.08 consensus. Revenue guidance landed at $1.29 billion to $1.30 billion, right in line with analyst expectations of $1.29 billion.

The company also raised its full-year fiscal 2026 outlook. Adjusted EPS guidance moved from $3.60-$3.72 to $3.70-$3.72, compared to consensus of $3.67. Revenue guidance increased from $4.75-$4.80 billion to $4.79-$4.80 billion, versus the $4.78 billion consensus.

Wall Street Weighs In: Following the earnings release, several analysts adjusted their price targets on CrowdStrike:

  • Needham analyst Mike Cikos maintained a Buy rating and lifted his price target from $535 to $575.
  • JP Morgan analyst Brian Essex kept an Overweight rating and raised his target from $580 to $582.
  • BMO Capital analyst Keith Bachman maintained an Outperform rating with a new price target of $555, up from $500.
  • Scotiabank analyst Patrick Colville stuck with a Sector Outperform rating and increased his target from $600 to $613.
  • Canaccord Genuity analyst Kingsley Crane maintained a Hold rating and raised his price target from $500 to $515.

The Bottom Line: At last check, CrowdStrike shares were trading 1.1% lower at $510.75, suggesting investors might be waiting for more evidence of sustained momentum before getting excited again.

    CrowdStrike Delivers Record Results But Investors Aren't Impressed - MarketDash News