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Can New Falcon Identity Features Drive CrowdStrike's Growth?

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Key Takeaways

  • CrowdStrike adds new Falcon identity features, including phishing-resistant MFA and case management.
  • The FalconID tool delivers passwordless security using FIDO2 standards to block credential-based attacks.
  • CRWD's identity business ARR hit $435M, up 21% year over year, highlighting rapid adoption momentum.

CrowdStrike ((CRWD - Free Report) ) has introduced new features in its Falcon Next-Generation Identity Security platform to strengthen protection across human, machine, and AI agent identities. The update was announced recently at Fal.Con 2025 and adds phishing-resistant MFA, improved privileged access management, and identity-driven case management.

The new FalconID tool provides passwordless, phishing-resistant MFA using FIDO2 standards. Delivered through the Falcon mobile app, it uses real-time endpoint and identity signals to stop attackers from bypassing traditional MFA. This could appeal to enterprises that want stronger defenses against credential-based breaches.

CrowdStrike also expanded Falcon Privileged Access, making it easier to handle complex Active Directory and Microsoft Entra ID setups. The tool is focused on automating access grants and revocations through Microsoft Teams and Falcon Fusion SOAR. This is aimed at reducing standing privileges while also lowering risk.

Another addition includes identity-driven case management, which aims to link related detections into a single case inside Falcon’s Next-Generation SIEM. The feature combines endpoint, cloud, and SaaS telemetry, giving security teams full context to investigate and respond faster.

Identity security is one of CrowdStrike’s fastest-growing areas. In the second quarter of fiscal 2026, CrowdStrike’s identity business reached $435 million in ARR, up 21% year over year. With these newer updates, CrowdStrike is aiming to pull customers away from legacy IAM and PAM tools to drive higher adoption of its platform. If this strategy becomes successful, Identity Security could help CrowdStrike to move closer to its long-term target of $10 billion in ARR by fiscal 2031.

How Competitors Fare Against CRWD

CyberArk ((CYBR - Free Report) ) and Okta Inc. ((OKTA - Free Report) ) are key players competing with CrowdStrike in identity security.

CyberArk is an established leader in identity security and privileged access management. CyberArk is rapidly enhancing the capabilities of its identity security platform with AI integration. CyberArk Secure AI Agents Solution and CORA AI are the two most important recent additions to its portfolio, enabling it to secure a full spectrum of identities, including human, AI and machine.

Okta is best known for its identity and access management solutions. Okta has been adding AI-driven tools that automate risk detection and reduce manual processes in managing user access. Enterprises can implement Identity Threat Protection with Okta AI to leverage AI and machine learning techniques for real-time detection of the entire spectrum of Identity attacks.

CRWD’s Price Performance, Valuation and Estimates

Shares of CrowdStrike have gained 45.1% year to date compared with the Security industry’s growth of 21.1%.

CRWD YTD Price Return Performance

Zacks Investment Research
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From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 22.75X, way higher than the industry’s average of 13.28X.

CRWD Forward 12-Month P/S Ratio

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CrowdStrike’s fiscal 2026 earnings implies a year-over-year decline of 6.6%, while for fiscal 2027 earnings indicates year-over-year growth of 29.3%. The estimates for fiscal 2026 have been revised upward over the past 30 days, while for fiscal 2027, the estimates have been revised upward over the past seven days.

Zacks Investment Research
Image Source: Zacks Investment Research

CrowdStrike currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


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