Latest news with #FalconFlex
Yahoo
16-07-2025
- Business
- Yahoo
Will Platform Strategy Keep Driving CrowdStrike's Subscription Growth?
CrowdStrike CRWD is seeing strong momentum from its platform strategy, which is playing a key role in driving subscription revenue growth. In the first quarter of fiscal 2026, subscription revenues grew 20% year over year to $1.05 billion, making up 95% of total revenues. This growth is fueled by the rising adoption of Falcon Flex, CrowdStrike's subscription model designed to accelerate multi-module deployment and platform standardization. By the end of the first quarter, more than 820 customer accounts had adopted Falcon Flex. Total account deal value reached $3.2 billion within two years of launch, up 31% sequentially and over six times year over year. This trend supports strong multi-module adoption. At the end of the first quarter, module adoption rates were 48% for customers who were using six or more modules, 32% for seven or more, while 22% customers adopted eight or more modules. This shows that the platform approach is helping customers simplify their security tools and expand spending with instance, a Fortune 100 technology company grew its initial $12 million three-year Endpoint Detection and Response contract to a five-year $100 million-plus Falcon Flex agreement covering multiple modules. Another customer, a global healthcare provider, expanded with Falcon Identity Protection as part of an eight-figure deal using Charlotte AI and Next-Gen Security Information and Event Management. These trends suggest that platform consolidation, accelerated by Falcon Flex and strong multi-module adoption, is a major factor behind CrowdStrike's subscription revenue growth. Management expects these drivers to remain crucial to its growth strategy in the coming quarters. The Zacks Consensus Estimate indicates subscription revenues to soar by 21.2% year over year to $4.56 billion in fiscal 2026. Competitors like Zscaler ZS and SentinelOne S are also gaining ground through platform expansion and artificial intelligence innovation. Zscaler ended its third quarter of fiscal 2025 with $2.9 billion in ARR, reflecting 23% year-over-year growth. The robust growth was driven by Z-Flex and rapid traction across Zscaler's three strategic growth pillars, which include Zero Trust Everywhere, Data Security Everywhere and Agentic comparatively a small competitor, SentinelOne's ARR is also growing rapidly with reaching $948 million at the end of the first quarter of fiscal 2026. This represents year-over-year growth of 24%, fueled by the rising adoption of SentinelOne's AI-first Singularity platform and Purple AI. Shares of CrowdStrike have gained 39.2% year to date compared with the Security industry's growth of 17.1%. Image Source: Zacks Investment Research From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 22.64X, way higher than the industry's average of 14.01X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for CRWD's fiscal 2026 earnings implies a year-over-year decline of 10.94%, while for fiscal 2027 earnings implies year-over-year growth of 34.68%. The estimates for fiscal 2026 and 2027 have been revised upward in the past 60 days. Image Source: Zacks Investment Research CrowdStrike currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-07-2025
- Business
- Yahoo
CrowdStrike Caution Grows After Rating Cut
Crowdstrike (NASDAQ:CRWD) slides almost 2% premarket after Morgan Stanley downgrades to equal-weight on full valuation following a near 50% rally since April lows. Warning! GuruFocus has detected 5 Warning Sign with CRWD. Morgan Stanley analysts led by Keith Weiss said they are stepping to the sidelines given full valuation after the nearly 50% bounce since April and rising growth expectations. The firm raised its price target to full-form $495 from $490 while acknowledging CrowdStrike remains a long-term market leader in cybersecurity with direct exposure to AI driven consolidation. The second half acceleration we expect now looks well priced in the shares, the analysts said. The move follows a broader pullback in growth names this week as investors book profits in tech and other high growth sectors after extended rallies amid lingering Fed policy concerns. Weiss's team added that the second quarter print is unlikely to shift the long-term thesis as investor attention remains on the second half of the year. They highlighted limited visibility into Customer Commitment Package renewals and Falcon Flex contract impacts on revenue recognition and margins and said a more balanced risk reward profile calls for waiting on better entry points. Investors should care because the stock's rally has already priced in the acceleration analysts expect, leaving limited near-term upside and skewing risk reward toward cautious positioning. Investors will eye CrowdStrike's second quarter earnings in late July for clearer insight into growth drivers and margin trends. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
Can Falcon for IT Help CrowdStrike Expand Beyond Cybersecurity?
CrowdStrike Holdings, Inc. CRWD is already a leader in cybersecurity, but its latest push into IT operations through Falcon for IT could take the company further. Falcon for IT is a unified security and IT operations platform designed to streamline endpoint management, automate tasks, and enhance security module, which is within the broader CrowdStrike Falcon platform, leverages AI and real-time insights to help organizations achieve better visibility, control, and faster response times across their IT environments. With more than 20 pre-built response actions, Falcon for IT's use cases extend beyond security investigations to include endpoint reporting, incident response, baseline enforcement and automated platform is already showing early signs of growing adoption. In the first quarter of fiscal 2026, management noted that Falcon for IT replaced a legacy endpoint management tool as part of a nine-figure Falcon Flex expansion with a Fortune 100 technology firm. This deal also included Falcon Identity Protection and Next-Gen Security Information and Event Falcon platform currently has more than 30 modules, and the inclusion of Falcon for IT in a large Flex deal suggests that CrowdStrike's platform is extending its utility beyond core cybersecurity. By offering tools that handle security and IT operations on one platform, CrowdStrike simplifies the platform's usefulness, which helps it in grabbing new customers and retaining the existing ones. It also helps customers cut costs by reducing the number of separate tools they need to highlights how CrowdStrike continues to strengthen its platform and reflects the company's growing role in adjacent IT domains and not just cybersecurity. Falcon for IT may pave the way for CrowdStrike to expand into IT environments, which were traditionally outside the reach of pure-play cybersecurity vendors. Zscaler ZS and Palo Alto Networks PANW are also evolving their platforms to meet enterprise security continues to expand its Zero Trust Exchange platform. In the third quarter of fiscal 2025, Zscaler reported ARR of $2.9 billion, up 23% year over year. Zscaler's Zero Trust Everywhere, Data Security Everywhere, and Agentic Operations are becoming its main growth engine. Together, these innovative categories are approaching $1 billion in ARR and are growing faster than Zscaler's total ARR Alto Networks is doubling down on its platformization strategy. In the third quarter of fiscal 2025, PANW closed more than 90 net new platform deals. Moreover, the number of customers platformized on Cortex was up nearly three times, reflecting strong momentum with Palo Alto Networks' Extended Security Intelligence and Automation Management or XSIAM security operation platform. Shares of CrowdStrike have gained 47.9% year to date compared with the Security industry's growth of 23.8%. Image Source: Zacks Investment Research From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 23.73X, slightly higher than the industry's average of 14.91X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for CRWD's fiscal 2026 earnings implies a year-over-year decline of 10.94%, while for fiscal 2027 earnings implies year-over-year growth of 34.68%. The estimates for fiscal 2026 and 2027 have been revised upward in the past 30 days. Image Source: Zacks Investment Research CrowdStrike currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
13-06-2025
- Business
- Business Insider
Cybersecurity Leader CrowdStrike (CRWD) Primed for Growth Amid Sprawling AI Arms Race
I've long viewed CrowdStrike Holdings (CRWD) as a high-quality investment. The company's resilience, wide competitive moat, and market-leading cybersecurity solutions make a strong long-term case, despite some operational imperfections. Given its robust fundamentals, I believe now is an opportune time for investors to consider a position in this company. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter While broader macroeconomic uncertainty presents some headwinds, the demand for cybersecurity remains as critical as ever. CrowdStrike's recent quarterly results were impressive, reinforcing the company's trajectory of durable and sustainable growth. Recurring Revenue Leads to Happy Shareholders Within the Q1 results mentioned above, net new annual recurring revenue (ARR) was $194 million, exceeding the consensus analyst estimate. ARR is always an essential focus for long-term investors because it shows reliability in cash flows, which leads to compounded returns for shareholders over time. Another key component of CrowdStrike's ARR growth is Falcon Flex, a subscription-based product gaining rapid traction. Falcon Flex reached a total deal value of $3.2 billion, representing a significant increase from the previous year. CrowdStrike also authorized a $1 billion share buyback program. Ultimately, management appears to have confidence that the stock price will increase in the future. These points collectively indicate a strong company with deep and lasting relationships with its customers. Nonetheless, the valuation is undeniably pricey at approximately 24x forward sales. The company is also vulnerable to macroeconomic shifts; any significant downturn in IT spending could temporarily halt momentum. Still, I believe that any weakness in the stock will be a perfect buying opportunity, given the long-term growth horizon. CrowdStrike's Strategic Realignment and Federal Push CrowdStrike recently announced a strategic realignment plan, which includes reducing its headcount by 5%, aiming to make the company more efficient. Initially, layoffs may sound concerning, but this is a smart strategy to increase efficiency through AI-driven automation and maintain a culture of meritocracy. Obviously, top talent will be retained. Another exciting growth opportunity is in the federal market. CrowdStrike obtained FedRAMP High authorization, positioning the company well for profitable federal cybersecurity contracts. Government requirements regarding Zero Trust cybersecurity architectures are a tailwind. These contracts could contribute $100–150 million in annual recurring revenue (ARR) by 2027. If CrowdStrike can capture even a small percentage of this market, it will generate additional revenue, improve margins, and enhance profitability (currently struggling as the chart shows). That said, there are risks to be mindful of. Federal contract cycles are often long and slow, and the Falcon Flex consumption-based model may introduce variability in revenue. Nonetheless, I have faith in management's capability to overcome these challenges. I maintain medium-term expectations that the company will deliver strong growth while consistently expanding its margins. A Worldwide Opportunity with High Customer Value Worldwide scaling and module expansion will be another critical aspect of CrowdStrike's long-term growth horizon. CrowdStrike has a 97% retention rate, and 67% of customers now use five or more security modules. This is clearly a management team obsessed with competing in hyper-growth international operations. It's rare for companies to sustain hyper-growth, but when they do, they often remain in the news and become legendary stocks to own in the long term. Strategic acquisitions are also enhancing its capabilities. CrowdStrike's acquisition of Bionic last year provided much-needed application-level observability features, giving CrowdStrike a considerable lead over competitors like SentinelOne (S) and Palo Alto Networks (PANW). There is no doubt CrowdStrike will continue to maintain that lead through strategic acquisitions and product superiority. CrowdStrike trades around 24x forward sales, or roughly 85x operating cash flow, which isn't cheap. It's productive to spend some time running scenarios here: If CrowdStrike can sustain 20–25% ARR growth, it would be reasonable to assume it could justify the valuation and likely still find strong returns. On the other hand, if a sudden degradation in growth occurs, it would not be out of the question for CrowdStrike's valuation multiples to compress dramatically. Is CrowdStrike a Buy, Sell, or Hold? CrowdStrike has a consensus Moderate Buy rating on Wall Street, based on 27 Buys, eight Holds, and one Sell rating over the past three months. CRWD's average stock price target is $489.76, indicating approximately 3% expected upside over the next twelve months. The near-term return itself looks relatively low, but the long-term return horizon is robust. I would personally wait to buy on a dip, but the stock is well-positioned to continue delivering strong growth for shareholders, regardless of any short-term overvaluation. Toppy Valuation Countered by Long-Term Potential While CrowdStrike may not currently rank among the most attractive investments purely from a valuation standpoint, it remains well-positioned to deliver sustainable long-term returns. Given its strong annual recurring revenue, deep customer relationships, and clear industry leadership, the company deserves a spot on investors' watchlists. A meaningful market pullback could present an excellent entry point. Despite short-term valuation concerns, I remain bullish on CrowdStrike's long-term potential.
Yahoo
06-06-2025
- Business
- Yahoo
CrowdStrike: Higher Sales, Higher Costs
CrowdStrike topped Wall Street earnings expectations, but adjusted EPS, free cash flow, and net new recurring revenue all were lower than Q1 2025. Margin pressure and higher expenses continue as it works to keep customers on board following its summer 2024 major outage. CrowdStrike's "FalconFlex" licensing program is proving popular with customers. 10 stocks we like better than CrowdStrike › Here's our initial take on CrowdStrike's (NASDAQ: CRWD) financial report. Metric Q1 FY25 Q1 FY26 Change vs. Expectations Revenue $921 million $1.1 billion 19% Met Earnings per share $0.79 $0.73 -8% Beat Net new ARR $212 million $194 million -8% N/A Free cash flow $323 million $279 million -14% N/A Coming up on the one-year anniversary of CrowdStrike's disastrous July 2024 global outage, the cybersecurity company continues to make progress moving past the incident. CrowdStrike beat earnings per share (EPS) estimates for the quarter and matched on revenue, though earnings, free cash flow, and growth in annual recurring revenue (ARR) all were down year over year. Similar to previous quarters, CrowdStrike is showing solid growth, but the growth is coming at a higher cost than prior to the meltdown. Subscription gross margin fell 100 basis points to 77% in the quarter, and on a generally accepted accounting principles (GAAP) basis, the company reported a $110.2 million net loss. Total operating expenses climbed 36% year over year to $939 million, with sales and marketing expenses responsible for much of those gains. Still, it is clear that customers are not abandoning the cybersecurity platform. CrowdStrike said its "Falcon Flex" licensing program, a consumption-based model that allows customers to expand or swap modules as needed, is gaining traction, with total Falcon Flex deal value up more than 6x year over year. The company also announced that its board had approved a new $1 billion share-repurchase program. That should help offset stock-based compensation and help counter CrowdStrike's nearly 14% growth in shares outstanding over the past five years. CrowdStrike came into earnings with a lot of momentum, with the stock up 40% year to date. The results left investors underwhelmed, with shares trading down 7% in aftermarket trading following the release of results but ahead of the call with investors. CrowdStrike sees further growth from here. The company is forecasting fiscal 2026 second-quarter earnings of between $0.82 and $0.84 per share, ahead of the $0.81 consensus estimate, and slight sequential revenue growth of $1.14 billion to $1.15 billion. Wall Street had modeled $1.16 billion in revenue for the quarter. The company also boosted its full-year earnings per share guidance by $0.11 per share on both the top and bottom end of the range, to $3.44 to $3.56 per share. The results appear not to be enough to make investors forget about CrowdStrike's summer of 2024 misstep but also offer no indication that the franchise product is suffering. And management remains bullish on what is to come. CFO Burt Podbere, commenting on the report, said CrowdStrike remains committed to "net new ARR reacceleration and margin expansion in the second half of fiscal year 2026," fueled by Falcon Flex and the company's robust pipeline. If CrowdStrike can deliver on that goal, the stock has plenty of room to run from here. Full earnings report Investor relations page Additional coverage Before you buy stock in CrowdStrike, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CrowdStrike wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool has a disclosure policy. CrowdStrike: Higher Sales, Higher Costs was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
