Shares of CrowdStrike Holdings Inc (NASDAQ:CRWD) tanked in early trading on Wednesday, despite the company reporting upbeat fiscal third-quarter results.
Here are some key analyst takeaways:
- Scotiabank analyst Patrick Colville maintained a Sector Outperform rating, while lifting the price target from $600 to $613.
- Canaccord Genuity analyst Kingsley Crane reiterated a Hold rating, while raising the price target from $500 to $515.
- Wedbush analyst Dan Ives reaffirmed an Outperform rating and price target of $600.
- Rosenblatt Securities analyst Catharine Trebnick maintained a Buy rating and price target of $630.
- DA Davidson analyst Rudy Kessinger reiterated a Buy rating and price target of $550.
- BofA Securities analyst Tal Liani reaffirmed a Neutral rating and price target of $535.
Check out other analyst stock ratings.
Scotiabank: CrowdStrike delivered a clean beat and raised its guidance on ARR (annual recurring revenue) and revenue, Colville said in a note. He added, however, that the beat on earnings was "a bit underwhelming."
"The company reiterated its outlook for 20% net new ARR (NNARR) growth for F2027, even with the increased base, which is great and nicely puts a floor for next year," the analyst wrote.
Canaccord Genuity: The latest quarter was among the best in CrowdStrike's history, Crane said. The company's net-new ARR rose 73% year-on-year to $263 million, from $221 million in the previous quarter.
Growth in total ARR and subscription revenues reaccelerated in the quarter, the analyst stated. "Operating income guidance was meaningfully raised, while full-year profitability is expected to be back-end loaded," he further wrote.
Wedbush: CrowdStrike's total ARR grew 23% year-on-year to $4.92 billion, topping consensus estimate of $4.90 billion, Ives said. This was driven by NNARR of $265.0 million beating Street expectations of $240.0 million, he added.
The company delivered the strongest NNARR in its history in Next-Gen SIEM, Falcon Shield, and Cloud, the analyst stated. "The Falcon Flex program continues to drive further platform adoption as Flex Accounts now have over $1.35 billion in ARR which was grew 200% y/y," he further wrote.
Rosenblatt Securities: CrowdStrike reported revenues of $1,234.2 million, beating consensus by $20 million, Trebnick said. Revenue growth accelerated to 22.5% year-on-year, from 21.3% in the previous quarter, she added.
"Management delivered conservative FY26 top-line guidance, raising the midpoint by $24M and the high-end of the range by just $1M," the analyst wrote. CrowdStrike highlighted strong Falcon Flex customer adoption, with Flex accounts now representing more than $1.35 billion in ARR, she further stated.
DA Davidson: CrowdStrike reported fiscal third-quarter earnings of 96 cents per share, coming in higher than consensus of 94 cents per share, Kessinger said. Subscription revenue growth reaccelerated to 21% year-on-year, from 20% in the previous quarter, he added.
For the fiscal fourth quarter, management guided to revenues of $1,295.0 million and earnings of $1.10 per share, versus consensus of $1,293.8 million and $1.08 per share, respectively. The company raised its full-year revenue and earnings guidance to $4,801.6 million and $3.71 per share, from its previous outlook of $4,777.5 million and $3.66 per share, respectively, the analyst stated.
BofA Securities: CrowdStrike reported strong results with ARR and revenue growth of 22.5% and 22.2%, beating Street expectations of 21.9% and 20.2%, respectively, Liani said. The company witnessed broad-based growth in most segments, he added.
CrowdStrike is "addressing the right opportunities" and has a total addressable market of $140 billion and its target market is expected to grow to $300 billion by 2030, the analyst stated. The stock came under pressure due to "high expectations and elevated valuation," he further wrote.
CRWD Price Action: Shares of CrowdStrike Holdings had declined by 2.30% to $504.68 at the time of publication on Wednesday.
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