CrowdStrike (CRWD) Stock Forecast & Price Target

CrowdStrike Holdings has demonstrated substantial growth, with a 26% year-over-year increase in direct customer count, reaching 29,000 customers in fiscal year 2024. The company's total revenue rose by 25.2% year-over-year, outpacing expectations, while annual recurring revenue (ARR) from LogScale surged over 140% year-over-year, signaling strong demand for its offerings. Additionally, the introduction of the Falcon Flex licensing program and a robust cloud security segment, which grew ARR by over 45% year-over-year, positions CrowdStrike for further growth and improved financial performance in the coming periods.

CrowdStrike Holdings reported a decline in operating cash flow and free cash flow by 15% year-over-year, despite higher figures that beat consensus expectations. The company's guidance for fiscal year 2026 indicates anticipated revenue growth of only 19.5%-20.1% year-over-year, falling slightly short of Street projections, along with expected declines in net new ARR of 11% year-over-year in the upcoming quarter. Additionally, significant cash impacts from recent outages and flexible payment terms have strained profitability, leading to lowered non-GAAP EPS guidance and highlighting ongoing challenges in managing growth and operational effectiveness.