CrowdStrike Holdings, Inc. (CRWD) | Investment Case

1. Company Snapshot

1.a. Company Description

CrowdStrike Holdings, Inc.provides cloud-delivered protection across endpoints and cloud workloads, identity, and data.It offers threat intelligence, managed security services, IT operations management, threat hunting, Zero Trust identity protection, and log management.

The company primarily sells subscriptions to its Falcon platform and cloud modules through its direct sales team that leverages its network of channel partners.It serves customers worldwide.The company was incorporated in 2011 and is based in Austin, Texas.

Show Full description

1.b. Last Insights on CRWD

Negative drivers behind CrowdStrike Holdings' recent performance include a 22% decline in 3 months due to slowing revenue growth, rising costs, and a rich valuation. The company's premium valuation, trading at 19.5x FY26 revenue and 16.0x FY27 revenue, is double or triple that of direct competitors. Additionally, concerns about AI replacing related companies have contributed to the sell-off. Furthermore, a downgrade from Kaybank and a widening valuation premium versus high-growth cybersecurity peers like Zscaler have also weighed on the stock.

1.c. Company Highlights

Last Price	409
Change Percentage	-4.48%
Open	423.68
Previous Close	428.18
Market Cap ( Millions)	103728
Volume	7642344
Year High	566.9
Year Low	298
M A 50	427.68
M A 200	468.19

FCF Yield	1.20%
Dividend Yield	0.00%
ROE	-4.68%
Debt / Equity	18.52%
Net Debt / EBIDTA	-3949.50%
Price To Book	23.33
Price Earnings Ratio	-563.9
Price To FCF	83.67
Price To sales	21.56
EV / EBITDA	889.46

2. CrowdStrike's Q4 FY '26 Results: A Strong Finish to a Record Year

CrowdStrike delivered exceptional Q4 FY '26 results, exceeding expectations across all guided metrics. Revenue growth was robust, with net new ARR reaching $331 million, up 47% year-over-year, and ending ARR growing 24% to $5.25 billion. Operating income reached a record $326 million for the quarter, and $1.05 billion for the year, while free cash flow was $376 million for the quarter and $1.24 billion for the year. EPS came in at $1.12, slightly above estimates of $1.1. The company's strong financial performance was driven by its AI-powered Falcon platform, with over 1,800 distinct AI applications detected on enterprise devices.

Publication Date: Mar -05

                                    📋 Highlights
                                    Record Net New ARR::
                                                $331 million (47% YoY growth), with ending ARR reaching $5.25 billion (24% YoY growth).
Free Cash Flow Milestone::
                                                $376 million in Q4 and $1.24 billion annually (26% of revenue), driven by operating leverage.
Operating Income Growth::
                                                $326 million in Q4 and $1.05 billion annually, reflecting margin expansion.
Falcon Flex Traction::
                                                Over 1,600 customers and $1.69 billion ARR (120% YoY growth), highlighting diversified adoption.
Next-Gen Security Growth::
                                                Identity, cloud, and SIEM segments grew 45% YoY to $1.9 billion ARR, underscoring strategic focus on AI-driven threats.

                                

Segment Performance

The Falcon Flex subscription model saw significant traction, with over 1,600 customers, and ARR exceeding $1.69 billion, up over 120% year-over-year. Next-Gen Identity, cloud, and Next-Gen SIEM businesses collectively grew more than 45% year-over-year, reaching over $1.9 billion in ending ARR. The endpoint business accelerated for the second consecutive quarter, driven by AI-related threats.

Growth Prospects

CrowdStrike guides for 22.5% net new ARR growth for FY '27, driven by strong momentum, broad-based demand, and record Q1 pipeline growth of 49% year-over-year. The company is well-positioned to benefit from the growing need for AI security, with its cloud security posture management (CSPM) technology and other acquired technologies like Falcon Shield providing a potent offering for customers. As George Kurtz noted, "AI deployment will require protection, identity security, and compliance," and CrowdStrike is poised to capitalize on this trend.

Valuation

CrowdStrike's valuation metrics indicate a high-growth expectation. The stock trades at a P/S Ratio of 21.36 and an EV/EBITDA of -2511.57, suggesting that investors are pricing in significant revenue growth. The company's ROE and ROIC are currently negative, but this is expected to improve as the business continues to scale. With a strong track record of execution and a robust growth outlook, CrowdStrike appears to be well-positioned to drive long-term value creation.

3. NewsRoom

Palantir vs. CrowdStrike: Which AI-Powered Software Stock Will Dominate 2026?

13:00

Source: fool.com

CrowdStrike vs. Zscaler: Which Cybersecurity Stock Has an Edge?

Mar -19

Source: zacks.com

Can Strategic AI Partnerships Drive CrowdStrike's Long-Term Growth?

Mar -19

Source: zacks.com

CrowdStrike, AWS, and NVIDIA Announce Startup Accelerator Finalists Ahead of RSAC™ 2026; Robert Herjavec Joins as Celebrity Judge

Mar -19

Source: businesswire.com

CrowdStrike Expands Mission-Critical Security With FedRAMP High Authorization

Mar -18

Source: benzinga.com

CrowdStrike: Unjustified SaaS Fears (Rating Upgrade)

Mar -18

Source: seekingalpha.com

Okta and CrowdStrike Could Be the Backbone of AI Security

Mar -18

Source: marketbeat.com

CrowdStrike's Hidden Growth Engine

Mar -18

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (35.00%)

6. Segments

Security Software & Services

Expected Growth: 37.0%

The Security Software & Services segment is expected to grow at a rate slightly above the global revenue growth hypothesis due to its strong market position, innovative products, and increasing demand for cloud-delivered security solutions. The segment's ability to adapt to evolving cyber threats and expand its customer base will drive its growth, outpacing the global average. The growth rate is also influenced by the increasing adoption of cloud-based security solutions.

7. Detailed Products

Falcon Endpoint Protection

A cloud-based endpoint security solution that provides real-time threat detection, prevention, and response.

Falcon Intelligence

A threat intelligence solution that provides real-time threat data, analysis, and insights to help organizations stay ahead of emerging threats.

Falcon Overwatch

A managed threat hunting service that provides 24/7 monitoring and response to advanced threats.

Falcon Spotlight

A vulnerability management solution that provides real-time vulnerability detection and prioritization.

Falcon Discover

A cloud-based IT hygiene solution that provides real-time visibility into endpoint configurations and vulnerabilities.

CrowdStrike Falcon XDR

A cloud-based extended detection and response solution that provides real-time threat detection and response across endpoints, networks, and clouds.

8. CrowdStrike Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CrowdStrike Holdings, Inc. has a low threat of substitutes due to its unique cloud-based endpoint security platform, which provides advanced threat detection and prevention capabilities.

Bargaining Power Of Customers

CrowdStrike Holdings, Inc. has a medium bargaining power of customers due to the presence of large enterprises and government agencies as its customers, which can negotiate prices and terms.

Bargaining Power Of Suppliers

CrowdStrike Holdings, Inc. has a low bargaining power of suppliers due to its ability to develop its own technology and intellectual property, reducing its dependence on external suppliers.

Threat Of New Entrants

CrowdStrike Holdings, Inc. has a high threat of new entrants due to the growing demand for cybersecurity solutions and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

CrowdStrike Holdings, Inc. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	24.72%
Debt Cost	4.40%
Equity Weight	75.28%
Equity Cost	9.32%
WACC	8.11%
Leverage	32.84%

11. Quality Control: CrowdStrike Holdings, Inc. passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CrowdStrike

A-Score: 5.1/10

Value: 4.0

Growth: 8.8

Quality: 3.7

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

Oracle

A-Score: 4.8/10

Value: 2.7

Growth: 6.8

Quality: 6.0

Yield: 2.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

Zscaler

A-Score: 4.7/10

Value: 2.3

Growth: 8.4

Quality: 3.5

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

Fortinet

A-Score: 4.5/10

Value: 1.0

Growth: 9.1

Quality: 7.9

Yield: 0.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

Adobe

A-Score: 4.5/10

Value: 3.0

Growth: 5.4

Quality: 9.2

Yield: 0.0

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

Synopsys

A-Score: 2.2/10

Value: 0.9

Growth: 0.8

Quality: 6.4

Yield: 0.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

22.55%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.11%

CrowdStrike Holdings, Inc. - US22788C1053

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CRWD

1.c. Company Highlights

Expensive

Higher Growth

Strong Momentum

Earnings Beats

Revenues Beats

Stable Momentum

Average Yield

Fairly Valued

2. CrowdStrike's Q4 FY '26 Results: A Strong Finish to a Record Year

Segment Performance

Growth Prospects

Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (35.00%)

6. Segments

Security Software & Services

Expected Growth: 37.0%

7. Detailed Products

Falcon Endpoint Protection

Falcon Intelligence

Falcon Overwatch

Falcon Spotlight

Falcon Discover

CrowdStrike Falcon XDR

8. CrowdStrike Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: CrowdStrike Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

409.0$

Current Price

409$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA