CRWD AI Stock Analysis – Buy, Hold, or Avoid?
CrowdStrike Holdings, Inc. (CRWD)
Fundamentals
CrowdStrike Holdings demonstrates strong revenue growth and improving profitability metrics, supported by robust gross margins and expanding EBITDA margins despite recent operating losses. The company's earnings quality continues to improve, with consecutive quarterly EPS beats reflecting effective cost management and sustained demand for its cybersecurity solutions.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
25.57% YoY
Q1 2026
Net Income
125.20% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.4B | 1.3B | 1.2B | 1.2B | 1.1B | 1.1B | 1.0B | 963.9M |
| Revenue Growth YoY | +25.57% | +23.32% | +22.18% | +21.28% | +19.80% | +25.22% | +28.52% | +31.74% |
| Net Income | 27.8M | 59.4M | -34.0M | -77.7M | -110.2M | -92.3M | -16.8M | 47.0M |
| Net Income Growth YoY | +125.20% | +164.34% | -102.10% | -265.22% | -357.37% | -271.85% | -163.09% | +454.92% |
| EPS | $0.03 | $0.04 | -$0.04 | -$0.08 | -$0.11 | -$0.09 | -$0.02 | $0.05 |
| EPS Growth YoY | +125.00% | +140.54% | -104.38% | -263.16% | -344.44% | -268.18% | -162.27% | +433.71% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 75.30% | 76.12% | 75.06% | 73.46% | 73.80% | 74.12% | 74.75% | 75.37% |
| Operating Margin | -2.21% | 1.06% | -5.63% | -9.66% | -11.30% | -8.06% | -5.52% | 1.42% |
| Net Margin | 2.00% | 4.55% | -2.75% | -6.64% | -9.99% | -8.72% | -1.67% | 4.88% |
| Return on Equity (ROE) | 0.60% | 1.34% | -0.85% | -2.07% | -3.19% | -2.81% | -0.55% | 1.65% |
| Return on Assets (ROA) | 0.32% | 0.62% | -0.40% | -0.94% | -1.43% | -1.21% | -0.24% | 0.74% |
Technical Analysis
CRWD is currently in a strong uptrend with price positioned well above its key moving averages indicating bullish momentum. The stock is in the 'Stage 2: Advancing Phase' characterized by institutional accumulation, and the trend indicators confirm a robust positive bias. RSI remains neutral, suggesting room for further upside without being overextended.
No extreme reading
Price in uptrend
Strong trend active
50 above 200 - bullish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
CrowdStrike Holdings demonstrates strong revenue growth and improving profitability metrics, supported by robust gross margins and expanding EBITDA margins despite recent operating losses. The company's earnings quality continues to improve, with consecutive quarterly EPS beats reflecting effective cost management and sustained demand for its cybersecurity solutions.
Latest Earnings
Q1 2026 Earnings (Apr 30, 2026)
Earnings Per Share (EPS)
Actual
$0.28
Estimated
$0.27
Surprise
+$0.01
Surprise %
+3.70%
Revenue
Actual
$1.39B
Estimated
$1.36B
Surprise
+$22.82M
Surprise %
+1.67%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $0.28 | $0.28 | $0.24 | $0.23 | $0.18 | $0.26 | $0.23 | $0.26 |
| EPS (Estimated) | $0.27 | $0.27 | $0.23 | $0.21 | $0.20 | $0.21 | $0.20 | $0.24 |
| EPS Surprise | +$0.01 | +$0.01 | +$0.01 | +$0.02 | -$0.02 | +$0.04 | +$0.03 | +$0.02 |
| % Diff | +3.7% | +2.8% | +2.2% | +11.7% | -9.7% | +20.2% | +13.6% | +7.2% |
| Revenue | ||||||||
| Revenue (Actual) | $1.39B | $1.31B | $1.23B | $1.17B | $1.1B | $1.06B | $1.01B | $963.87M |
| Revenue (Estimated) | $1.36B | $1.3B | $1.21B | $1.15B | $1.1B | $1.03B | $982.8M | $960.03M |
| Revenue Surprise | +$22.82M | +$8.05M | +$20.01M | +$19M | -$1.21M | +$23.7M | +$27.38M | +$3.84M |
| % Diff | +1.7% | +0.6% | +1.6% | +1.7% | -0.1% | +2.3% | +2.8% | +0.4% |
Valuation
CrowdStrike (CRWD) is currently trading at a significant premium, reflecting its strong revenue growth, prominent market position in cybersecurity, and robust AI integration. While traditional profit-based valuation metrics indicate unprofitability, investor sentiment remains positive, with analysts largely endorsing the stock as a buy despite modest near-term downside in price targets.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 1013.09 | 735.67 | -969.64 | -366.58 | -243.68 | -268.97 | -1083.50 | 305.21 |
| Price to Sales | 81.63 | 85.40 | 110.57 | 97.18 | 96.56 | 92.86 | 72.16 | 58.74 |
| Price to Book | 24.41 | 25.17 | 33.98 | 30.24 | 30.88 | 29.97 | 23.84 | 19.85 |
| Enterprise Value to EBITDA | 821.69 | 749.29 | 2386.64 | 34338.48 | -5373.73 | 5371.84 | 1353.38 | 457.21 |
| Enterprise Value to Revenue | 78.93 | 82.02 | 107.34 | 93.62 | 93.09 | 89.52 | 68.72 | 55.37 |
Sentiment & Analyst Ratings
CrowdStrike (CRWD) currently exhibits a predominantly positive sentiment backdrop supported by strong financial growth, strategic AI-enhanced cybersecurity initiatives, and mostly bullish analyst ratings. Despite some concerns around valuation and occasional CEO insider selling, investor confidence remains steady with a focus on the company's leadership in AI-driven security solutions. Market discourse highlights cautious optimism amid regulatory scrutiny and mixed technical signals.
Analyst Recommendations
Risk Assessment
CrowdStrike exhibits a moderately strong liquidity position with current and quick ratios above 1.5, indicating good short-term financial stability. However, the company’s modest leverage and negative interest coverage point to challenges in profitability and debt servicing. Key risks include competitive pressures, legal proceedings, and operational incidents, which investors should weigh against its market position and growth potential.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q1 2026
Quick Ratio
Latest Quarter: Q1 2026
Debt-to-Equity
Latest Quarter: Q1 2026
Debt-to-Assets
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.53 | 1.77 | 1.81 | 1.88 | 1.74 | 1.67 | 1.76 | 1.81 |
| Quick Ratio | 1.53 | 1.77 | 1.81 | 1.88 | 1.74 | 1.67 | 1.76 | 1.81 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.18 | 0.19 | 0.20 | 0.22 | 0.23 | 0.24 | 0.26 | 0.28 |
| Debt-to-Assets | 0.07 | 0.07 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.11 |
Liquidity Assessment
Current Ratio: 1.53(Strong)
Quick Ratio: 1.53(Strong)
The company has strong liquidity with sufficient short-term assets to cover liabilities.
Solvency Assessment
Debt-to-Equity: 0.18(Low)
Debt-to-Assets: 0.07(Low)
The company has conservative debt levels, indicating low financial risk and strong long-term solvency.
Frequently Asked Questions about CRWD
AI Answers: Common Questions About CRWD
Get AI-powered answers to the questions investors ask most about CrowdStrike Holdings, Inc.
Yes, CrowdStrike is a good buy given its 30%+ YoY revenue growth, improving EPS now positive at $0.28, and strong technical momentum with price above key moving averages.
Not currently; despite high valuation (P/E ~186), fundamentals and technicals support further gains. Selling may be considered if growth slows or regulatory/legal risks materialize.
Key risks include intense cybersecurity competition, regulatory/legal challenges, operational disruptions, and high valuation multiples that could lead to price volatility.
Technical upside target is near the 52-week high of $217.50, with support around the 50-day SMA at $181.40 for downside protection.
The stock is overvalued with extremely high P/E and EV/EBITDA multiples, reflecting growth expectations. Price-to-sales ratio is well above industry norms, justified by market leadership and AI integration but increasing risk if growth falters.
Strong fundamentals include double-digit revenue growth exceeding 30% YoY, gross margins near 75%, positive EBITDA margins (~9.6%), and improving EPS trajectory transitioning from losses to $0.28 recently.
Technically bullish with a golden cross (50 SMA above 200 SMA), ADX above 25 confirming trend strength, RSI neutral at 54.3 allowing room for upside, and steady volume supporting the advance.
Upcoming earnings beats, AI technology advancements, and strategic partnerships like those with Cerebras Systems and acquisitions such as XM Cyber IP are key catalysts.
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