On Wednesday, TD Cowen maintained a positive stance on shares of CrowdStrike Holdings (NASDAQ:CRWD), reiterating its Buy rating and a price target of $380.00. The cybersecurity firm's third-quarter results for fiscal year 2025 were strong, underlined by a 27% growth in Annual Recurring Revenue (ARR) and a 29% increase in revenue.
The analyst highlighted the success of the Falcon Flex (NASDAQ:FLEX) subscription model in driving the adoption of the Falcon platform and noted the robust uptake of multiple product modules.
CrowdStrike's confidence is buoyed by the expectation that Net New ARR will accelerate in the second half of fiscal year 2026. The company's Next-Gen Security Information and Event Management (SIEM) product demonstrated significant growth, contributing to the optimistic outlook. Moreover, the recently established CrowdStrike Falcon Security (CFS) unit has had a promising start, further reinforcing the company's growth trajectory.
The analyst's commentary reflects CrowdStrike's continued momentum in the cybersecurity space, with its innovative subscription model and product offerings resonating with customers. The Falcon platform's flexibility and the strategic move to expand into Next-Gen SIEM and form the CFS division are seen as key drivers for the company's future growth.
CrowdStrike's financial performance, as reported in the third quarter of fiscal 2025, indicates a solid business model capable of sustaining growth. With the anticipated acceleration of Net New ARR in the latter half of fiscal 2026, the company appears well-positioned to maintain its upward trend.
TD Cowen's reiterated Buy rating and price target suggests confidence in CrowdStrike's strategy and market position. The analyst's remarks underscore the company's potential to continue delivering strong financial results and expanding its customer base in the rapidly evolving cybersecurity industry.
In other recent news, CrowdStrike Holdings has been demonstrating strong financial performance, with multiple analyst firms adjusting their price targets for the cybersecurity company. Needham, Citi, Baird, and Susquehanna have all increased their price targets, reflecting the company's robust third-quarter results, including revenue surpassing $1 billion, marking a 29% increase from the previous year.
The company's Annual Recurring Revenue (ARR) also saw a significant rise, reaching $4.02 billion, a 27% growth from the previous year. However, some concerns have been raised over a decline in new ARR and a contraction in Free Cash Flow margins.
The company's performance has been attributed to successful strategies such as the Falcon Flex offering, which has contributed to broader platform adoption. CrowdStrike's management aims to accelerate net new ARR in the second half of fiscal year 2026 and has set a goal to reach $10 billion in ARR by fiscal year 2031.
Analyst firms, including Scotiabank (TSX:BNS) and BTIG, have maintained neutral ratings, noting potential challenges such as the lingering effects of a July outage incident.
These recent developments underscore CrowdStrike's resilience and potential for growth, despite facing certain challenges. The company's strong execution and the ability to turn challenges into opportunities, as seen in the third quarter, have earned it positive ratings from multiple analyst firms.
However, these firms also caution that the near-term outlook may be impacted by various factors, including the potential lingering effects of the July outage incident.
InvestingPro Insights
CrowdStrike's strong performance highlighted in the article is further supported by real-time data from InvestingPro. The company's market capitalization stands at an impressive $89.3 billion, reflecting investor confidence in its growth trajectory. CrowdStrike's revenue for the last twelve months as of Q2 2025 reached $3.52 billion, with a robust revenue growth of 33.07% over the same period. This aligns with the 29% revenue increase mentioned in the article and underscores the company's ability to expand its market share.
InvestingPro Tips indicate that CrowdStrike's net income is expected to grow this year, which corroborates the analyst's positive outlook on the company's financial performance. Additionally, the company's strong return over the last year, with a one-year price total return of 73.42%, demonstrates its ability to deliver value to shareholders.
It's worth noting that CrowdStrike is trading at high valuation multiples, including a P/E ratio of 515.09. While this suggests high growth expectations, it also implies that investors are pricing in significant future expansion, aligning with the company's anticipated acceleration in Net New ARR.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for CrowdStrike, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.