In the digital age, as businesses migrate more workloads to the cloud, cyber threats are becoming more sophisticated and persistent. As a result, the demand for intelligent cybersecurity solutions is increasing rapidly. CrowdStrike Holdings (CRWD), a cybersecurity company known for its cloud-native Falcon platform and artificial intelligence (AI)-driven threat detection capabilities, has risen quickly to prominence as a result.

However, the company experienced severe turbulence in 2024 when a flaw in its Falcon Sensor security software impacted multiple industries. However, it quickly recovered, assuring investors that it had strengthened its quality assurance processes to prevent future incidents. CRWD stock, valued at $119.8 billion, has risen 40.7% year to date, outperforming the S&P 500 Index ($SPX), which has gained 2.8%. 

The company reported a strong start to its fiscal 2026, boosting confidence in its long-term growth prospects. Let’s see if this is the right time to buy the stock. 

From Weakness to Winning Edge

CrowdStrike delivered powerful first-quarter fiscal 2026 results, including strategic moves, innovation, and competitive wins that reinforce its position as the go-to cybersecurity platform for the AI era. Net new annual recurring revenue (ARR) reached $194 million, significantly exceeding expectations. The company’s total ARR has now surpassed $4.4 billion, indicating that it remains the only pure-play cybersecurity software company of this size. Notably, its subscription gross margin remained consistent at 80%, demonstrating the business model’s strength.

Total revenue in the quarter stood at $1.1 billion, up 20% from the prior-year quarter. The company generated free cash flow of $279.4 million (25% of revenue) and ended the quarter with a record $4.61 billion in cash. CrowdStrike’s subscription model, FalconFlex, is to be credited for this growth, which continues to exceed expectations. In just under two years, FalconFlex has grown to over $3.2 billion in total account value, with over 820 accounts. It added $774 million in total value this quarter alone, more than six times what it did last year.

CrowdStrike is not only growing; it is expanding by driving AI-native transformation and consolidating cybersecurity under a single, intelligent platform. FalconFlex continues to experience rapid growth. The cybersecurity firm is also heavily invested in agentic AI, a next-generation advancement from automation. Its AI security analyst, Charlotte AI, is leading the transformation of the Security Operations Center (SOC). 

Looking ahead, management anticipates Q2 revenue of around $1.15 billion, a 19% year-over-year increase. Fiscal 2026 revenue is expected to range between $4.74 and $4.81 billion, compared to $3.95 billion in fiscal 2025. Adjusted earnings per share are expected to range between $3.44 and $3.56, compared to $3.93 in fiscal 2025. 

Analysts covering the stock predict an earnings dip of 10.7% in fiscal 2026, with revenue increasing by 21%. However, earnings could increase by 34.6%, with revenue surging by around 22% in fiscal 2027, respectively. Currently, CRWD stock trades at a premium of 101 times forward 2027 earnings and 35 times forward sales, which reflects investors’ confidence in the cybersecurity giant’s long-term prospects. 

What Does Wall Street Say About CRWD Stock?

Following a strong start to fiscal 2026, Wall Street maintains a “Strong Buy” rating on CRWD stock. Recently, Stephens analyst Todd Weller increased the stock’s target price to $540, implying 11% increase from current levels. Weller is impressed with the company’s profitability and cash flow performance and believes it is “one of the leading mega-cyber platform players, well-positioned to continue to drive growth from multiple, large cyber markets.”

Among the 46 analysts covering the stock, 29 rate it as a “Strong Buy,” three as a “Moderate Buy,” 12 as a “Hold,” and two as a “Strong Sell.” The stock has also surpassed analysts’ average price target of $478.14. However, the Street-high estimate of $550 suggests the stock could still gain another 13.4% from current levels.

The Key Takeaway

The global cybersecurity market is expected to grow from $190.4 billion in 2023 to around $298.5 billion by 2028, driven by digital transformation, hybrid work models, and rising geopolitical tensions that worsen cyber threats. Within this expanding market, cloud-based endpoint security is one of the fastest-growing subsectors. 

CrowdStrike has shown resilience after a challenging year. I agree with Wall Street that CrowdStrike stock is currently a “Strong Buy” for investors interested in the digital infrastructure’s immune system.