In the past month, CrowdStrike Holdings Inc. (NASDAQ: CRWD) reported solid first-quarter results and announced a $1 billion share repurchase plan.
CRWD faces post-outage churn and profit pressure, while OKTA gains ground with AI-led identity tools and strong partner growth.
Recently, Zacks.com users have been paying close attention to CrowdStrike (CRWD). This makes it worthwhile to examine what the stock has in store.
Senior Market Analyst, Matthew Timpane CMT, recently went live on Timing Research's Analyze Your Trade show.
CrowdStrike's recent earnings miss and weak guidance highlight ongoing headwinds from last year's outage and the customer consolidation program. Additionally, the shift to Falcon Flex contracts is creating near-term revenue recognition headwinds but should drive stronger long-term customer retention and ecosystem adoption. Customer retention remains strong at 97%, but the full impact of last year's outage may not be clear until Q3, so caution is warranted.
CrowdStrike Holdings Inc. NASDAQ: CRWD stock is having a run in 2025 that's eerily similar to that of Palantir Technologies Inc. NASDAQ: PLTR. CRWD stock is up “only” about 40% this year.
Crowdstrike's Falcon Flex drove $774 million in Q1 bookings, marking over 6x YoY growth and $3.2 billion in total deal value. The average Flex client contract exceeds $1 million ARR, with one Fortune 100 firm expanding 8x to $100 million+. 75% of Flex contracts are already deployed, and 39 clients re-Flexed within five months, signaling rapid platform adoption.
With Charlotte AI leading SOC automation and customer growth, CRWD deepens its push into agentic cybersecurity leadership.
CRWD's Next-Gen SIEM, now integrated with OverWatch, posts 100% ARR growth as demand surges.
CrowdStrike's recent rally has occurred overly fast and furious, since its robust ARR and multi-year backlog growth have yet to be translated to its bottom-lines. With the stock trading at notable premiums compared to the historical trends and its cybersecurity peers, we maintain our belief that there is a minimal margin of safety here. Metrics are also pointing to CRWD's seemingly overbought positions, with the normalization in market sentiments potentially triggering double-digit corrections.
CrowdStrike's Falcon platform is essential as cyberattack capabilities intensify due to advanced technology; despite the high valuation (~28x sales), sustained 20%+ revenue growth and solid retention justify long-term investment confidence. AI-driven Falcon distinguishes CRWD from peers like Palo Alto and SentinelOne, successfully integrating security across endpoints, cloud, and identity. Disciplined capital allocation and strong cash flow generation (~$1.1B TTM) reflect meticulous management; investors should wait for pullbacks but expect robust returns from secular cybersecurity tailwinds.
CRWD jumps 52% in 3 months as Falcon Flex and AI-native tools drive demand, but rising costs cloud the outlook.