CRWD AI Stock Analysis – Buy, Hold, or Avoid?
CrowdStrike Holdings, Inc. (CRWD)
Fundamentals
CrowdStrike (CRWD) has demonstrated outstanding revenue and earnings growth in recent quarters, significantly outperforming consensus expectations. Its transition to sustained quarterly profitability and consistently high gross margins underscore a maturing, highly scalable business model—though valuation remains demanding amid recent volatility.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
23.32% YoY
Q4 2025
Net Income
141.93% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.3B | 1.2B | 1.2B | 1.1B | 1.1B | 1.0B | 963.9M | 921.0M |
| Revenue Growth YoY | +23.32% | +22.18% | +21.28% | +19.80% | +25.22% | +28.52% | +31.74% | +32.99% |
| Net Income | 38.7M | -34.0M | -77.7M | -110.2M | -92.3M | -16.8M | 47.0M | 42.8M |
| Net Income Growth YoY | +141.93% | -102.10% | -265.22% | -357.37% | -271.85% | -163.09% | +454.92% | +8620.98% |
| EPS | $0.15 | -$0.14 | -$0.31 | -$0.44 | -$0.37 | -$0.07 | $0.19 | $0.18 |
| EPS Growth YoY | +140.54% | -104.38% | -263.16% | -344.44% | -268.18% | -162.27% | +433.71% | +8471.43% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 76.34% | 75.59% | 73.46% | 73.80% | 74.12% | 74.75% | 75.37% | 75.57% |
| Operating Margin | 1.21% | -3.05% | -9.66% | -11.30% | -8.06% | -5.52% | 1.42% | 0.75% |
| Net Margin | 2.96% | -2.75% | -6.64% | -9.99% | -8.72% | -1.67% | 4.88% | 4.65% |
| Return on Equity (ROE) | 0.87% | -0.85% | -2.07% | -3.19% | -2.81% | -0.55% | 1.65% | 1.69% |
| Return on Assets (ROA) | 0.40% | -0.40% | -0.94% | -1.43% | -1.21% | -0.24% | 0.74% | 0.71% |
Technical Analysis
CRWD is currently in a strong downtrend, with price trading below key moving averages and a confirmed death cross. Momentum is neutral to bearish, indicating a weak trend environment without strong momentum support. Recent price action is testing support levels near $375-$380 but remains under pressure amid the prevailing decline.
No extreme reading
Price in downtrend
Range-bound market
50 below 200 - bearish
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 (CRWD) has demonstrated outstanding revenue and earnings growth in recent quarters, significantly outperforming consensus expectations. Its transition to sustained quarterly profitability and consistently high gross margins underscore a maturing, highly scalable business model—though valuation remains demanding amid recent volatility.
Latest Earnings
Q4 2025 Earnings (Jan 31, 2026)
Earnings Per Share (EPS)
Actual
$1.12
Estimated
$1.10
Surprise
+$0.02
Surprise %
+1.82%
Revenue
Actual
$1.31B
Estimated
$1.3B
Surprise
+$7.89M
Surprise %
+0.61%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $1.12 | $0.96 | $0.93 | $0.73 | $1.03 | $0.93 | $1.04 | $0.93 |
| EPS (Estimated) | $1.10 | $0.94 | $0.83 | $0.66 | $0.86 | $0.81 | $0.99 | $0.90 |
| EPS Surprise | +$0.02 | +$0.02 | +$0.10 | +$0.07 | +$0.17 | +$0.12 | +$0.05 | +$0.04 |
| % Diff | +1.8% | +2.2% | +11.8% | +10.6% | +20.2% | +14.8% | +5.3% | +3.9% |
| Revenue | ||||||||
| Revenue (Actual) | $1.31B | $1.23B | $1.17B | $1.1B | $1.06B | $1.01B | $963.87M | $921.04M |
| Revenue (Estimated) | $1.3B | $1.21B | $1.15B | $1.1B | $1.03B | $982.8M | $960.03M | $904.56M |
| Revenue Surprise | +$7.89M | +$20.01M | +$18.56M | -$1.21M | +$23.7M | +$27.38M | +$3.84M | +$16.47M |
| % Diff | +0.6% | +1.6% | +1.6% | -0.1% | +2.3% | +2.8% | +0.4% | +1.8% |
Valuation
CrowdStrike (CRWD) shows strong fundamental growth highlighted by solid revenue and gross margins, but its earnings remain negative with operating losses and weak profitability metrics. The stock trades at a substantial premium to sector peers based on sales and EBITDA multiples, reflecting investor optimism tied to its market position, growth opportunities, and partnerships, although it currently lacks forward profitability.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 720.36 | -1003.56 | -365.63 | -241.69 | -266.29 | -1083.29 | 301.08 | 413.99 |
| Price to Sales | 85.40 | 110.57 | 97.18 | 96.56 | 92.86 | 72.16 | 58.74 | 76.99 |
| Price to Book | 25.18 | 33.98 | 30.24 | 30.87 | 29.97 | 23.84 | 19.85 | 27.97 |
| Enterprise Value to EBITDA | 1146.82 | 3871.47 | 34339.26 | -5373.60 | 5371.70 | 1353.33 | 457.21 | 623.12 |
| Enterprise Value to Revenue | 82.03 | 107.34 | 93.62 | 93.09 | 89.52 | 68.72 | 55.37 | 73.83 |
Sentiment & Analyst Ratings
CrowdStrike (CRWD) sentiment is predominantly positive among analysts, driven by strong fiscal 2026 results and strategic AI partnerships, despite recent stock price declines due to macroeconomic uncertainties and competitive pressures. While retail sentiment shows mixed reactions largely influenced by insider selling and high valuation concerns, overall market optimism remains on the growth potential from AI security solutions and robust recurring revenue growth.
Analyst Recommendations
Risk Assessment
CrowdStrike presents a moderate risk investment profile supported by a strong liquidity position and manageable leverage, though the company faces significant operational and competitive risks inherent to the cybersecurity sector. Recent challenges, including product-related incidents and heightened competitive pressures, coupled with high valuation multiples and ongoing losses, temper the optimism for near-term profitability. The balance sheet strength suggests resilience for short-term obligations, but investors should weigh these against macroeconomic vulnerabilities and execution uncertainties.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 1.77 | 1.81 | 1.88 | 1.74 | 1.67 | 1.76 | 1.81 | 1.71 |
| Quick Ratio | 1.77 | 1.81 | 1.88 | 1.74 | 1.67 | 1.76 | 1.81 | 1.71 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.19 | 0.20 | 0.22 | 0.23 | 0.24 | 0.26 | 0.28 | 0.31 |
| Debt-to-Assets | 0.07 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.11 | 0.12 |
Liquidity Assessment
Current Ratio: 1.77(Strong)
Quick Ratio: 1.77(Strong)
The company has strong liquidity with sufficient short-term assets to cover liabilities.
Solvency Assessment
Debt-to-Equity: 0.19(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.
CRWD is not an ideal buy right now for short-term traders due to a strong downtrend, death cross, and lack of bullish reversal signals. However, for long-term investors, the stock’s high revenue growth (22% YoY), strong margins (>74%), and market leadership in cybersecurity make it attractive on pullbacks, though its P/E (-601.62) and high P/S/EV/EBITDA multiples mean valuation risk remains high.
If you are a short-term trader, technicals suggest further downside risk and it may be prudent to reduce exposure or wait for a technical base. Long-term holders with conviction in the growth story can hold, as fundamentals remain strong and no major thesis-breaking event has occurred, but be aware of ongoing volatility and consider trimming if risk tolerance is low.
The biggest risks are CRWD’s elevated valuation (P/E -601.62, P/S and EV/EBITDA 2-3x sector), potential for competitive disruption (especially from AI), and recent technical breakdowns. Sentinel notes moderate overall risk, with a current ratio above 1.7 and debt-to-equity near 0.18, but warns of macro sensitivity and execution risks.
Technically, downside support is near $325 (52-week low), with resistance at $408 and $460. Analyst consensus targets are $495-$505, implying 15-27% upside from current levels, but technicals suggest waiting for a reversal before expecting a move toward those targets.
CRWD is overvalued relative to peers, with a negative P/E (-601.62), very high P/S and EV/EBITDA multiples (2-3x sector), and current profitability not yet justifying its premium. The stock trades well above its five-year median multiples, reflecting high growth expectations that may not be fully de-risked.
Fundamentally, CRWD is very strong: revenue grew 22% YoY to $4.81B, gross margins exceed 74%, and operating margins are improving. The company has shifted to positive net income in recent quarters, with a robust balance sheet (current ratio >1.7, low leverage), supporting long-term growth.
Technically, CRWD is in a bearish regime: price is below all major SMAs, a death cross is active, RSI is neutral at 41, and no bullish reversal patterns are present. Support is at $375-$380, with risk of a move to $325; only a sustained break above $408 would suggest technical improvement.
Key catalysts include upcoming earnings (which have consistently beaten estimates), new AI-powered product launches (such as Charlotte AI AgentWorks), and macro developments affecting IT security budgets. Share buybacks and further analyst upgrades could also provide support if fundamentals remain strong.
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