CrowdStrike Holdings (CRWD) has shown stoic resilience through the recent market pullback while continuing to scale with exceptional speed. I believe this company is still in the early innings of its long-term growth arc, benefiting from secular tailwinds in cybersecurity and advanced computing. CRWD’s flagship Falcon Flex product, an excellent barometer for the company’s offering, is growing at a rate of 80% quarter-over-quarter and more than 10x year-over-year, showing strong customer commitment to the platform.
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Moreover, in addition to rosy fundamentals, CRWD’s technical outlook warrants attention. CrowdStrike’s price action formed a “golden cross” at the end of last year, with its fifty-day moving average crossing above the two-hundred-day mark, signalling short-term bullish momentum.
CrowdStrike Holdings (CRWD) price chart including technical analysis
With the valuation having cooled off from frothy highs, the setup here is compelling for retail investors willing to lean into a quality name and wait for the rewards. I’m bullish, and so is Wall Street.
Recent Pullback Clears Path for Upside
CrowdStrike stock has retraced about 18% from its $455 February highs, and I see that as a buying opportunity, not a warning sign. The pullback hasn’t been driven by a fundamental deterioration—it’s largely been about macro headwinds. Meanwhile, the company continues to grow revenue at nearly 30%, consolidate margins, and generate meaningful free cash flow. While Wall St. is aiming for ~$421, my proprietary twelve-month price target is $430. I expect a return to prior highs, and I think the longer-term five-year outlook is even more compelling if management executes and the market rewards durable growth.
The biggest proof point of CrowdStrike’s staying power might be its response to adversity. After the major IT outage in July 2024—one of the most serious in recent memory—the company retained 97% of its customer base. That kind of retention is rare, especially in tech. That tells me that CrowdStrike’s Falcon platform isn’t just another piece of software, but rather, a mission-critical layer in the security architecture of the modern enterprise. And that’s before we even consider the secular momentum in the sector. As quantum and edge computing accelerate, so do cybersecurity threats surface, thereby creating a theoretical virtuous circle of demand.
CrowdStrike Holdings (CRWD) vs. S&P 500 (SPY)
So far, results have been consistent. Annual recurring revenue, or ARR, grew to $4.24 billion in FY2025, with $224 million added in net new ARR in the fourth quarter alone. That’s not just a strong number—it’s a record showing that customers are doubling down. With management eyeing $10 billion in ARR over the coming years, I see a powerful runway ahead.
Rich Yet Justified Valuation
Let’s tackle valuation because it’s critical to a growth stock like CrowdStrike. Shares currently trade at about 95x non-GAAP earnings of $3.93 per share for FY2025, which sounds steep, but earnings are scaling rapidly. Revenue grew 29% year-over-year, hitting $3.95 billion, while free cash flow reached $1 billion, showing disciplined and efficient growth.
The price-to-sales multiple of 23x trailing revenue also appears rich, but with a FY2026 revenue forecast of around $4.8 billion, that multiple should compress significantly. Looking five years out, if CrowdStrike hits its ambitious $10 billion annual recurring revenue target with expanding margins, today’s valuation could seem modest.
CrowdStrike Holdings (CRWD) estimated and reported revenues history
Technically, CrowdStrike’s chart is supportive: a recent golden cross, where the fifty-day moving average moved above the two-hundred-day, signals bullish momentum. Key support around $333–$350 remains solid, and resistance levels to watch are at $400 and the recent high of $455.
The Relative Strength Index of about 50 indicates healthy momentum, neither overheated nor weak, and trading volume is orderly, showing investors remain confident even after last July’s outage. Valuation and technical indicators suggest that CrowdStrike’s premium multiple is justified by its rapid growth and improving profitability trajectory.
Revenue Growth Meets Internal Discipline
One of the things I admire about CrowdStrike is how it balances top-line growth with operational discipline. Subscription gross margins hover around 80%, and the company’s free cash flow margin is around 27%. That’s elite for a software firm, and it gives CrowdStrike flexibility to invest in R&D, make smart acquisitions, or weather short-term turbulence.
Management has guided conservatively for FY2026, with revenue expected to grow 20%. But this is a team known for underpromising and overdelivering. I wouldn’t be surprised to see them beat and raise once again. The long-term picture is just as strong. With a war chest of over $4 billion in cash and a strong upsell engine, customers are steadily adopting more modules—I see no reason to doubt the story.
Is CrowdStrike a Buy, Sell, or Hold?
On Wall Street, CrowdStrike stock has a consensus Strong Buy rating based on 33 Buys, three Holds, and zero Sells. The average CRWD price target is $421, indicating a 16% upside potential over the next 12 months. My base-case target of about $430 is conservative and supported by the consensus.
CrowdStrike stands out as one of the few growth names still worth chasing. The fundamentals are strong, the technical setup is favorable, and the valuation, while elevated, has come down enough to make the risk-reward compelling. The company’s role in the evolving cybersecurity and AI landscape is central, not peripheral. For investors who want exposure to tomorrow’s digital infrastructure, this looks like a name to own, not trade. While the road might be volatile, I’m confident it leads higher.
