CRWD AI Stock Analysis – Buy, Hold, or Avoid?

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CrowdStrike Holdings, Inc. (CRWD)

Fundamentals

Essentia
Essentia
Fundamental Analysis
MIXED

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

Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025-$450.0M$0$450.0M$900.0M$1.4BRevenue & Net Income ($)-12%-8%-4%0%4%Net Margin (%)
  • Revenue
  • Net Income
  • Net Margin (%)

Revenue

$1.31B

23.32% YoY

Q4 2025

Net Income

$38.69M

141.93% YoY

Q4 2025

Net Margin

2.96%

Q4 2025

Growth Metrics

Revenue Growth YoY

23.32%

Latest Quarter: Q4 2025

Net Income Growth YoY

141.93%

Latest Quarter: Q4 2025

Revenue Per Share Growth YoY

20.57%

Latest Quarter: Q4 2025

EPS Growth YoY

140.54%

Latest Quarter: Q4 2025

Book Value Per Share Growth YoY

31.76%

Latest Quarter: Q4 2025

 Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue1.3B1.2B1.2B1.1B1.1B1.0B963.9M921.0M
Revenue Growth YoY+23.32%+22.18%+21.28%+19.80%+25.22%+28.52%+31.74%+32.99%
Net Income38.7M-34.0M-77.7M-110.2M-92.3M-16.8M47.0M42.8M
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

76.34%

TTM

Operating Margin

1.21%

TTM

Net Margin

2.96%

TTM

Return on Equity

-4.68%

TTM

Return on Assets

-1.91%

TTM

 Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Gross Margin76.34%75.59%73.46%73.80%74.12%74.75%75.37%75.57%
Operating Margin1.21%-3.05%-9.66%-11.30%-8.06%-5.52%1.42%0.75%
Net Margin2.96%-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

Candela
Candela
Technical Analysis
BEARISH

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.

RSI
Hold
Neutral41

No extreme reading

03070100
Trend
Sell
Strong Downtrend

Price in downtrend

-17.9% from 200 SMA
ADX
Hold
Weak/No Trend18

Range-bound market

Weak
MA Cross
Sell
Below 50/200

50 below 200 - bearish

50
200

Key Technical Values

Price
$379.02
50 SMA
$407.50
150 SMA
$463.68
200 SMA
$461.87
52W High
$566.90
52W Low
$324.49

Price with Moving Averages

50-day, 150-day and 200-day simple moving averages

Price
50 SMA
150 SMA
200 SMA

Relative Strength Index

Momentum oscillator measuring speed and magnitude of price changes

RSI (14)

≤30 Oversold
≥70 Overbought
41Neutral

Earnings

Essentia
Essentia
Fundamental Analysis
MIXED

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)

Beat

Actual

$1.12

Estimated

$1.10

Surprise

+$0.02

Surprise %

+1.82%

Revenue

Beat

Actual

$1.31B

Estimated

$1.3B

Surprise

+$7.89M

Surprise %

+0.61%

Historical Earnings

 Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 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

Valorem
Valorem
Valuation Analysis
OVERVALUED

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

-522.56

TTM

Price to Sales

19.98

TTM

Price to Book

21.62

TTM

Enterprise Value to EBITDA

821.37

TTM

Enterprise Value to Revenue

19.06

TTM

 Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Price to Earnings720.36-1003.56-365.63-241.69-266.29-1083.29301.08413.99
Price to Sales85.40110.5797.1896.5692.8672.1658.7476.99
Price to Book25.1833.9830.2430.8729.9723.8419.8527.97
Enterprise Value to EBITDA1146.823871.4734339.26-5373.605371.701353.33457.21623.12
Enterprise Value to Revenue82.03107.3493.6293.0989.5268.7255.3773.83

Sentiment & Analyst Ratings

Pulse
Pulse
Sentiment Analysis
MIXED

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

As of Apr 1, 2026
Strong SellSellHoldBuyStrong Buy
Buy
3.9 / 5.0
Based on 56 analyst ratings
Strong Sell
0
Sell
0
Hold
14
Buy
31
Strong Buy
11

Risk Assessment

Sentinel
Sentinel
Risk Assessment
MODERATE

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

1.77

Latest Quarter: Q4 2025

Quick Ratio

1.77

Latest Quarter: Q4 2025

Debt-to-Equity

0.19

Latest Quarter: Q4 2025

Debt-to-Assets

0.07

Latest Quarter: Q4 2025

 Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Liquidity Metrics
Current Ratio1.771.811.881.741.671.761.811.71
Quick Ratio1.771.811.881.741.671.761.811.71
Solvency Metrics
Debt-to-Equity0.190.200.220.230.240.260.280.31
Debt-to-Assets0.070.080.090.090.090.100.110.12

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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