The fact that CrowdStrike Holdings Inc (NASDAQ:CRWD) is beating the broader market in 2025 isn’t particularly noteworthy. It is noteworthy that, after an infamous outage in July 2024, CRWD stock didn’t just recover; it soared to an all-time high in February 2024. And even after a drop of approximately 7.5% in the 30 days ending Apr. 1, analysts still see significant upside for the stock.
In the last week of March, BTIG Research analyst Gray Powell upgraded CRWD stock from a Hold to a Buy rating with a $431 price target. Then, on Apr. 1, Stephens initiated coverage of the stock with an overweight rating and a $450 price target. Powell said one reason for the upgrade was the belief that the company’s recent earnings report means the headwinds from the July outage have mostly receded.
In the company’s March earnings report, which covered the fourth quarter of its 2025 fiscal year, CrowdStrike beat narrowly on the top line but delivered an impressive 19% beat on earnings. That was also an impressive 329% beat on earnings on a year-over-year (YOY) basis.
The analyst coverage hasn’t been completely bullish. In March, several analysts, including Truist Financial and Jefferies Financial Group, lowered their price targets for CRWD stock. However, it’s important to note that in both cases, the price targets of $450 and $410, respectively, are above the current consensus price target.
CrowdStrike’s Revenue Is Becoming Sticky
Analysts are zeroing in on the growth in CrowdStrike’s annual recurring revenue (ARR). In the last quarter, the company reported $4.24 billion in ARR at the end of the fiscal year, a 23% YOY gain. That included $224 million in new ARR.
CrowdStrike is guiding to between $4.74 billion and $4.80 billion in total revenue for fiscal year 2026. A key reason for the revenue growth is that companies continue to add more modules to CrowdStrike’s Falcon platform. This is also why Palo Alto Networks (NASDAQ:PANW) Inc. NASDAQ: PANW is moving to a platformization strategy in hopes of increasing its ARR.
When you consider that the company’s subscription revenue comes with an 80% margin, you can see why analysts are getting more bullish on CRWD stock. While tariff and inflation concerns may limit the earnings potential for some companies, CrowdStrike looks like it will have no trouble growing earnings.
That doesn’t mean the stock may not be overvalued. As of Apr. 1, investors are still sitting with a price-to-earnings (P/E) ratio of approximately 515x. That’s one reason for the price drop since the earnings report. Analysts were hoping the report would be even better than it was. With the general sentiment against technology stocks, it’s not surprising that many investors were looking to take a little profit.
CRWD Stock Presents a Solid Technical Picture
In early March, CRWD stock found support right below its 200-day simple moving average. About two weeks later, it hit resistance around its 50-day SMA. On the one hand, this could signal that the stock is entering a defined range.
But analyst sentiment is saying something different. With institutional investors increasing their buying activity in the past quarter, there’s support for CrowdStrike outpacing, pushing beyond its prior all-time high.