/A%20concept%20image%20showing%20binary%20code%20with%20the%20ERROR%20message_%20Image%20by%20Danich%20Marmai%20via%20Shutterstock_.jpg)
In this digital age, in which cybersecurity threats are rapidly evolving, companies that provide digital protection are more important than ever. Valued at $89.8 billion, CrowdStrike Holdings (CRWD) is one of today’s most well-known cybersecurity companies. While the stock surged 147.2% in 2023, 2024 was a more difficult year, with the stock gaining just 38.6%. A faulty software update in July caused roughly 8.5 million Microsoft Windows systems to crash worldwide. CrowdStrike quickly identified and resolved the issue, and it has implemented recovery measures to regain customer’s trust.
Recently, Bank of America Securities analyst Tal Liani reaffirmed CrowdStrike’s “Buy” rating, citing the company’s key strategic and financial initiatives aimed at strengthening its market position following the July outage. CRWD stock is up nearly 9% in the year to date, compared to the S&P 500 Index’s ($SPX) dip of 2%.
Let’s find out if Crowdstrike is a buy now.
Crowdstrike: BofA Analyst Is Impressed With the Recovery Strategy
Following discussions with CrowdStrike’s CFO and chief accounting officer, Liani outlined several steps the company has taken to recover from the outage and drive long-term growth. These include the introduction of a Customer Commitment Package and the expansion of Falcon Flex deals, which aim to rebuild customer trust and increase adoption rates. Management expects a rebound in net new annual recurring revenue (nnARR) in the second half of the year, driven by increased demand for Cloud Security and Identity Security. CrowdStrike is well-positioned to capture market share as people increasingly rely on cybersecurity solutions in the face of rising threats.
The analyst noted that one of the most promising indicators of CrowdStrike’s future success is the widespread use of Falcon Flex deals. These agreements, which offer customers adaptable, scalable security solutions, have gained significant traction. Notably, 60% of Falcon Flex dollars have already been spent ahead of schedule, indicating strong customer engagement and potential growth at contract renewal. As management emphasized during the Q4 fiscal 2025 earnings call, the total value of Falcon Flex deals reached $2.5 billion, a tenfold increase year-over-year
Beyond its recovery efforts, Liani stated that CrowdStrike is prioritizing innovation and expansion to ensure long-term growth. The introduction of CharlotteAI, along with the company’s robust Cloud Security and Identity Security offerings, is expected to play an important role in its growth strategy. According to management, customers have reported a significant reduction in manual workload since using CharlotteAI. Notably, one European financial services firm stated that Charlotte AI summarizes security activity in 10 to 15 seconds, whereas previously it took 20 to 30 minutes. This tangible AI outcome is driving Falcon’s adoption as an AI-native security operations center (SOC).
CrowdStrike hopes that by implementing these new platform pillars, it will gain a competitive advantage and strengthen its position in the industry. Liani believes that despite the temporary setbacks, CrowdStrike’s proactive approach and strategic investments will drive accelerated growth in the second half of the year. With growing customer adoption of its security solutions and ongoing innovation, the company is well-positioned for long-term success. He has set a price target of $420, implying 13% upside from current levels.
A Strong End to Fiscal 2025
CrowdStrike’s recent fourth quarter and fiscal 2025 results indicate that the company is recovering well. In Q4, the company reported a 25% increase in revenue to $1.06 billion, with adjusted earnings per share (EPS) rising 8.4% to $1.03. Both revenue and earnings exceeded analysts’ expectations. For the full fiscal year, revenue increased by 29% to $3.95 billion, while EPS increased by 27.1% to $3.93. The company’s average recurring revenue (ARR) increased 23% to $4.24 billion. The company generated $1.07 billion in free cash flow. At the end of Q4, the company had $4.3 billion in cash and cash equivalents.
For fiscal 2026, management expects a revenue increase of 18% to 21% in fiscal 2026, while earnings per share may fall by 12% to 15%. Management reaffirmed that the company’s AI-powered security solutions will continue to drive growth toward its $10 billion ARR goal by fiscal 2031. Overall, analysts covering CRWD stock expect revenue to grow by 21% in fiscal 2026, while earnings may fall by 12.5%. Analysts predict that revenue will increase by 21.9% in fiscal 2027, followed by an earnings increase of 33.3%. CRWD stock is currently trading at a premium of 105 times forward earnings for 2026.
Is CRWD Stock a Buy Now, According to Wall Street?
Wall Street maintains an average rating of “Strong Buy” on CRWD stock. Of the 45 analysts that cover the stock, 32 rate it as a “Strong Buy,” three as a “Moderate Buy,” nine as a “Hold,” and one as a “Strong Sell.” The analysts’ average price target of $407.10 suggests that the stock could rise by up to 9.4% from current levels. The highest target price is $475, implying that the stock could gain 27% over the next 12 months.
The Key Takeaway
CrowdStrike remains a compelling buy for long-term investors willing to take on the short-term volatility. Starting with a small position and adding more shares on pullbacks could be a good strategy.
The global cybersecurity industry is expected to generate $271.9 billion by 2029. CrowdStrike’s strong market position, AI-driven security model, and subscription revenue stream make it an appealing growth stock in the cybersecurity industry. However, given the company’s high valuation, risk-averse investors may prefer to wait for a better entry point.
