CrowdStrike's net new ARR reached a record $333 million in fiscal Q2 2027, up 51% from a year earlier, and revenue growth rose to 25.8%. Management guides net new ARR to $343 million to $347 million in fiscal Q3 2027, though projected growth of 29% to 31% is well below the Q2 pace. Cooler demand would show up first in new business, which made up only about 5.7% of the $5.84 billion in annual recurring revenue, while subscriptions were 94.9% of fiscal 2026 sales. The larger exposure is the stock, which traded at 50.0 times sales on September 30, 2026 and has fallen further than the S&P 500 in most recent market shocks, while its $5.01 billion of cash against $820 million of debt does little to cushion the share price. The article suggests tracking net new ARR, the full-year revenue guide of $6.0 billion at the midpoint, and free cash flow, with fiscal Q3 results due in November 2026.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
CrowdStrikecybersecuritysoftwarevaluation
Open a keyword to see other news on the same topic.
Related news
- Up Over 100% in 2026, Is CrowdStrike Still a Buy?
CrowdStrike (CRWD) has risen more than 100% in 2026, yet it still ranks only 19th among S&P 500 stocks by performance. Its endpoint protection platform has 32 other modules, and 51% of clients use at least six of its products. Annual recurring revenue rose 25% and total revenue grew 26% in fiscal 2027's second quarter, while analysts project 23% revenue growth next year. The author argues the price-to-sales ratio is near its highest level since the stock went public, above late 2021 when growth was faster, so the rally reflects hype more than business results, and shareholders may consider profit-taking.
- Should One Cost Scare You About CrowdStrike Stock?
CrowdStrike (CRWD) paid employees $1.2 billion in stock over the year ended July 2026, about 23% of revenue, even as sales grew 24.3%. Diluted shares rose to 1.0 billion from 905 million five years earlier, while buybacks totaled only $176 million. Stock pay equaled about 82% of the company's $1.5 billion free cash flow, and the GAAP operating margin was -2.2%. As of October 21, 2026, the stock traded at 45.2 times sales versus 3.1 times for the S&P 500, and it returned 90.1% over the year against 16.5% for the index. The article says concern would grow if stock pay starts rising faster than sales, and suggests watching this ratio in the fiscal Q3 2027 report expected in late 2026.
- Here's What a $5,000 Investment in CrowdStrike Will Be Worth by 2028
CrowdStrike (CRWD) has nearly doubled in 2026, while its revenue growth has stayed steady at 26%. Analysts expect 24% revenue growth in the third and fourth quarters and 23% next year. The author, who is a shareholder, notes that the price-to-sales ratio, used because the company is not profitable, is the highest since 2021, and that the stock may have gotten ahead of itself, similar to the 2022 software sell-off when expectations outran growth. He suggests it may be time to trim and take gains, and says a $5,000 investment could be worth less by 2028 given the high valuation, preferring other AI stocks with better valuations and faster growth.
- As AI Supercharges Hackers, Cybersecurity Stocks Split Into Platforms and Point Solutions
A CrowdStrike threat report says attacks by AI-powered hackers jumped 89% last year, pushing buyers toward single connected platforms rather than many separate tools. Even so, CrowdStrike and Palo Alto Networks are each down more than 13% from their record highs in early October, and Okta fell more than 7% this week after a report that OpenAI may buy a cybersecurity startup. The article attributes the selloff to valuation rather than lost customers or revenue, as many of these stocks trade above 100 times earnings after gaining over 100% in 2026. It separates platform players like CrowdStrike (Falcon Flex contracted value above $2 billion) and Palo Alto Networks (about 220 platformization deals in a recent quarter) from point solutions such as Okta, which mainly verifies logins, while noting SentinelOne, Cloudflare and Zscaler are harder to classify.
- Is Crowdstrike’s Rally a Sign of a Sustainable Shift Toward Increased AI Cybersecurity?
CrowdStrike shares, at $261.83, rose 14.79% in a week and are up 123.42% year to date after a quarter that CEO George Kurtz called the best in the company's history. Revenue grew 25.8% to $1.47B, net new ARR rose 51% to $332.8M, and Falcon Flex ARR reached $2.29B, up 101%, while non-GAAP EPS of $0.31 beat the $0.2915 estimate. Full-year guidance was raised to $5.99B to $6.01B in revenue and $1.25 to $1.26 in non-GAAP EPS, though GAAP operating income was negative $33.23 million in the quarter. The stock trades at 189x forward earnings, and the average analyst target of $247.25 from 53 analysts sits about 5.6% below the current price. The article says the next report, with Q3 net new ARR guidance of $343 to $347 million, will test whether growth is still accelerating at this valuation.
- CrowdStrike Shares Gain 8.25% as CEO Warns of PHP Breaches
CrowdStrike shares rose 8.25% to $257.57 on Oct. 23, even as broader U.S. stocks declined and oil prices climbed. CEO George Kurtz told CNBC that breaches linked to newly disclosed PHP vulnerabilities could increase in the coming months, a forecast rather than confirmation of any specific breach, and said the flaws affected “tens of millions of internet-facing servers.” The two critical flaws, CVE-2026-109618 and CVE-2026-109619, could let attackers run code remotely without authentication, and patches are available for PHP 8.2.35, 8.3.36, 8.4.27 and 8.5.12. Amazon recorded an attempted exploit on Oct. 17, before public disclosure, while CrowdStrike said its investigations found no successful exploitation. The PHP Foundation attributed the slow response to disagreements over fixes, its consensus-based process and limited developer resources, calling the delay a “structural failure.”
Related markets
Latest news
- Bitcoin Mining Firm Luxor Raises $16 Million to Scale Its AI Compute Push
Luxor Technology, a company built on Bitcoin mining, raised $16 million in a strategic round led by CMT Digital, with participation from Canaan, MicroBT, Halo, Steelhead and angel investors. The raise follows the September launch of Luxor AI, which extends its energy, hardware, software and trading stack into AI and high-performance computing. The company said its hardware desk has traded $1 billion of mining ASICs, its energy arm serves more than 75 megawatts of load across two U.S. grid regions, and its cloud platform processed 1.8 million workloads so far this year as of September. Proceeds will go toward scaling the cloud platform, working capital for the AI hardware business, compute-derivatives trading and hiring. CEO and co-founder Nick Hansen said compute markets are converging, as the miners, power sites and capital that served digital mining now power AI.
- Luxor raises $16M from CMT Digital amid AI-Bitcoin miner convergence
Luxor Technology raised $16 million in a strategic round led by CMT Digital, with participation from Canaan, MicroBT, Halo, Steelhead and angel investors. The company plans to use the proceeds to scale its agentic cloud platform, grow its AI hardware business, expand compute derivatives trading and hire more staff. Luxor has expanded its hardware business to source GPUs and AI servers as global chip supply chains become increasingly hard to navigate. It raised $5 million in a Series A round led by NYDIG in June 2021, and earlier seed investors included Celsius, Valour and Bitnomial.
- Morning Minute: Tokenized Stock Battle Looms Over Robinhood's Earnings Call
A full-page Wall Street Journal ad paid for by Common Sense Leadership Fund warned public company CEOs that crypto is coming for their shares, listing eight risks and giving companies 30 days to opt out. The number of companies objecting to tokenizing their shares on the OKX-ICE venue rose from nine to 22 in about eight days, equal to 35% of the 63 companies the venue planned to list. Robinhood reports third-quarter results after the bell, and its Robinhood Chain, which launched its public mainnet, generated roughly $51 million in revenue in its debut quarter, more than Ethereum's $41 million. The chain processed about $65 billion in DEX volume, of which $13.7 billion was tokenized equities.
- Nvidia to invest $3 billion in Meta, expand partnership on Muse
Nvidia said it will invest $3 billion in Meta after the company announced plans to raise up to $95 billion to fund its AI infrastructure build-out. The two companies will also expand their work on Muse and the Muse family of models to improve inference and training performance. Meta's initial raise of $35 billion includes about $22.5 billion in Class A common stock and $12.5 billion in Series A mandatory convertible preferred stock. Nvidia, AMD and Broadcom also expressed interest in buying up to $5 billion in aggregate of those shares.
- Freeport beats Q3 estimates on higher copper, gold prices
Freeport-McMoRan reported third-quarter adjusted earnings of $0.88 per share, beating estimates of $0.80, with revenue up 8% to $7.55 billion, helped by higher commodity prices. Copper and molybdenum prices averaged $6.54 and $32.46 per pound, while copper sales fell to 749 million pounds from 977 million a year earlier due to lower operating rates in Indonesia during the ramp-up of the Grasberg Block Cave mine. Gold sales of 105 thousand ounces fell well short of the earlier estimate of 160 thousand ounces, mainly due to timing of refined gold sales in Indonesia. For full-year 2026, Freeport expects sales of about 3.0 billion pounds of copper, 649 thousand ounces of gold and 93 million pounds of molybdenum, with operating cash flow of about $8.5 billion. Shares rose 0.6% following the results.
- Jim Cramer's top 10 things to watch in the stock market Tuesday
Broadcom has finalized $63 billion in financing to help Anthropic buy its AI chips and networking gear. Meta increased the size of its Class A secondary offering to $25 billion from $22.5 billion, priced at $625 a share, while Nvidia said it is investing $3 billion in that offering. Celestica rose more than 12% after reporting a large earnings beat and issuing 2027 guidance for profits and sales well ahead of expectations. Coca-Cola raised its full-year earnings growth outlook to at least 11%, from 9% to 10% previously, and UPS raised full-year guidance, with shares up 2%. Whirlpool lowered full-year guidance after revenue and operating income came in weaker than expected, and shares fell 7%.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.