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what it is
CrowdStrike sells cloud software that watches devices, spots intruders, and blocks attacks.
how it gets paid
Last year CrowdStrike did ~$4.8B in revenue. Falcon platform subscriptions was the main engine at ~$2.6B, or ~54% of sales.
why it's growing
Revenue grew 21.7% last year. Yearly revenue gains will probably be in the low 20% range out to 2028-2030 versus the 37% experienced over the last half decade.
what just happened
Latest quarter (Q3 FY26): ~$1.23B revenue; non-GAAP EPS ~$0.96 — profitable on an adjusted basis while GAAP still carries stock-based comp and other noise.
At a glance
B+ balance sheet — decent shape, but not bulletproof
20/100 earnings predictability — expect surprises
128.6x trailing p/e — you're paying up for this one
19.5% return on capital — respectable for a growth SaaS name
xvary composite: 47/100 — below average
What they do
CrowdStrike sells cloud software that watches devices, spots intruders, and blocks attacks.
Your company does not replace this kind of software casually. CrowdStrike's Falcon platform is embedded across a large global enterprise base (roughly ~70% of revenue from the Americas). Endpoint security → device protection → the goal is to catch intrusions before they become headlines.
How they make money
$4.8B
annual revenue · their business grew +21.7% last year
Falcon platform subscriptions
$2.6B
+24.0%
Endpoint security modules
$1.1B
+30.0%
Threat intelligence and response
$0.6B
+18.0%
Professional services
$0.5B
+8.0%
The products that matter
cloud cybersecurity platform
Falcon Platform
$4.8B revenue · +21.7% growth
it's the core business and, based on the data here, effectively the whole revenue story. one platform narrative produced ~$4.8B last year while the company kept ~22% net margin on reported figures.
100% of current story
Key numbers
$576
target price
That is 21% above $475.91, so the stock still has room if execution holds.
128.6x
trailing p/e
You are paying ~128.6× trailing GAAP earnings — a high bar. Adjusted operating margins are healthy; GAAP still reflects heavy stock-based comp and other charges, so read GAAP vs non-GAAP as two different movies.
74.1%
gross margin
That cushion leaves room for sales, research, and the long wait for profit growth.
19.5%
return on capital
Every $100 of capital produced $19.50 in profit. Most software names would take that deal.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- long-term debt $745M (1% of capital)
- net profit margin 22.4% — keeps 22 cents of every dollar in revenue
- return on equity 21% — $0.21 profit for every $1 investors have put in
B+ — solid balance sheet for a high-growth software leader; debt is light relative to scale.
Total return vs. market
You invested $10,000 in CRWD 3 years ago → it's now worth $45,510.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Q3 FY26: revenue ~$1.23B (beat); non-GAAP EPS ~$0.96 vs guidance/consensus band ~$0.93–0.95.
Gross margin stayed ~74%, so the product still throws off plenty before sales and R&D. GAAP EPS can look ugly while adjusted profitability improves — keep both lenses.
~$1.23B
Q3 revenue
~$0.96
non-GAAP EPS
74.1%
gross margin
ARR trend
ARR momentum (~$4.9B+, up ~23% vs. prior year in recent disclosure) is what funds the story — revenue beats matter, but subscription durability drives the multiple.
-
the bottom-line result paled in comparison to previous double-digit beats in prior quarters, but still represented 26% growth over the year-earlier non-gaap figure.
-
most metrics are growing steadily, but not as rapidly as in years past.
-
yearly revenue gains will probably be in the low 20% range out to 2028-2030 versus the 37% experienced over the last half decade.
-
meanwhile, annual recurring revenues (arr), an important indication of customer satisfaction, are rising around 23% ($4.92 billion at end of october).
-
net new arr, defined as new incremental revenue sources, increased 73% to $265 million.
source: company earnings report, 2026
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What could go wrong
the #1 risk is multiple compression if revenue growth slips below the market's very high expectations.
med
valuation meets gravity
the stock trades at 128.6x trailing earnings and about 100x forward earnings using the $4.75 estimate. that kind of setup works while growth stays premium. it gets mean fast if growth stops looking special.
the shares already traded between $201 and $567 in the last 52 weeks. the stock has shown you what rerating risk looks like.
med
one platform, one revenue engine
Falcon is the story, but the income statement still shows multiple product lines (platform subs, modules, intel, services). economically it is one ecosystem — a slip in the core platform still hits almost everything.
segment labels diversify the table; strategy does not — execution risk is still concentrated in Falcon competitiveness and go-to-market.
med
earnings surprises move this stock
earnings predictability is 20/100 and price stability is 15/100. in plain english: analysts do not have this business perfectly boxed in, and the stock does not react politely when expectations shift.
when predictability is low and the multiple is high, even a small miss can hit the valuation and the narrative at the same time.
all three risks point to the same truth: with roughly $120B of value sitting on $4.8B of revenue, the downside usually starts with the multiple before it shows up in the income statement.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
whether 20%+ growth holds
21.7% growth is strong. it also has to stay strong when the stock still trades at 128.6x trailing earnings.
metric
forward earnings math
the $4.75 EPS estimate puts the stock near 100x forward earnings. if estimates slip and price does not, valuation risk gets louder.
calendar
next earnings print
Company guidance for the next fiscal Q4 has pointed to roughly ~$1.30B revenue at the midpoint; EPS will move with beats/misses on ARR and margins. For this name, setup and revisions matter as much as the headline print.
trend
institutional buying streak
net buying for 3 consecutive quarters is supportive. if that reverses while valuation stays rich, the tone around the stock changes quickly.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think near-term performance may lag even if the long-term story still looks intact.
risk profile
average
stability score 3 — this is not a bunker stock, but it is not the wildest thing in software either.
chart momentum
top 20%
technical score 2 — the chart still looks stronger than most stocks from here.
earnings predictability
20 / 100
forecasting is harder here than in steadier software names. when numbers move, the stock usually notices.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 1,068 buyers vs. 762 sellers in 3q2025. total institutional holdings: 0.2B shares.
source: institutional data
Price targets
3-5 year target range
$333
$818
$475.91
current price
$576
target midpoint · +21% from current · range high: $818 (~+72% from current)
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