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Next-Gen SIEM posted record net new ARR, boosted by major wins and an expanded AWS partnership.
CrowdStrike Holdings ((CRWD - Free Report) ) shares have soared 51.3% year to date (YTD), outperforming the Zacks Security industry’s 15.6% growth. The stock has also outperformed the returns of other industry peers, including SentinelOne ((S - Free Report) ),Zscaler ((ZS - Free Report) ) and Check Point Software ((CHKP - Free Report) ). Shares of Zscaler and Check Point Software have gained 34.2% and 6.3% YTD, respectively, while SentinelOne shares have plunged 32.1%.
CrowdStrike has been riding on strong enterprise demand for artificial intelligence (AI)-native cybersecurity solutions. But with the stock outperforming the industry and peers, the question arises: Does it still have room to run, or is it time for investors to consider taking profits? Let’s find out.
CrowdStrike’s subscription business model is driving its overall top-line performance. The company’s revenues crossed the $1 billion mark for the fifth consecutive time during the third quarter of fiscal 2026 and marked a year-over-year improvement of nearly 22%. This was partly achieved due to the strong adoption of the Falcon Flex Subscription Model, which allows customers to commit upfront and later choose modules, eliminating procurement friction.
CrowdStrike’s subscription customers, who adopted six or more cloud modules, represented 49% of the total subscription customers at the end of the second quarter. Those with seven or more cloud modules accounted for 34%, and those with eight or more cloud modules represented 24% as of Oct. 31, 2025.
In the third quarter, Annual Recurring Revenues (ARR) from Falcon Flex customers reached $1.35 billion, more than triple last year’s level. Management said Falcon Flex is now one of the most common ways customers choose to buy and expand on the Falcon platform.
Falcon Flex helps customers adopt new modules without long contract steps, which leads to faster platform usage. This is also driving strong re-Flex activity. More than 200 customers expanded their Flex contracts in the third quarter, and some more than doubled their original spending. According to the company, this shows customers see value quickly and are willing to increase their usage once they start with Flex.
Falcon Flex is also supporting growth in key product areas like Next-Generation (Next-Gen) Security Information and Event Management (SIEM), cloud security, identity security, and endpoint protection. Because Flex reduces procurement friction, customers can consolidate more of their security needs into one platform. This strengthens customer relationships and increases the likelihood of multi-module adoption.
If these patterns continue, Falcon Flex could remain one of CrowdStrike’s most important growth drivers through fiscal 2026 and beyond. The Zacks Consensus Estimate for both fiscal 2026 and 2027 revenues indicates a year-over-year increase of around 21%.
Image Source: Zacks Investment Research
CrowdStrike’s Next-Gen SIEM Fuels Growth Momentum
CrowdStrike is seeing strong momentum in its Next-Gen SIEM as part of its mission to protect enterprises against evolving cyber threats. In the third quarter of fiscal 2026, Next-Gen SIEM posted record net new ARR, showing that more customers are choosing it over older SIEM tools that are costly and slow. Management said companies want faster detection, easier workflows, and lower operating costs, which is driving interest in CrowdStrike’s unified SIEM model.
CrowdStrike also reported several large customer wins. A major European bank replaced its legacy SIEM and streaming pipeline with Falcon Next-Gen SIEM, Onum, and Charlotte AI in a large eight-figure deal. The company also highlighted multiple cases where customers moved off older SIEM systems, including Splunk, because Falcon can handle endpoint, cloud, identity, and third-party data in one place.
A key boost came from CrowdStrike’s expanded partnership with Amazon Web Services (“AWS”). Millions of AWS users can now access Falcon Next-Gen SIEM directly inside AWS Security Hub. This gives CrowdStrike a much wider pool of potential customers and may help convert free usage into Flex subscriptions over time.
CrowdStrike’s Premium Valuation Warrants a Cautious Approach
CrowdStrike is currently trading at a high price-to-sales (P/S) multiple, far above the Zacks Security industry. CrowdStrike’s forward 12-month P/S ratio sits at 22.93X, significantly higher than the Zacks Security industry’s forward 12-month P/S ratio of 12.37X.
Forward 12 Month P/S Ratio
Image Source: Zacks Investment Research
CRWD stock also trades at a higher P/S multiple compared with other industry peers, including SentinelOne, Zscaler and Check Point Software. At present, SentinelOne, Zscaler and Check Point Software have P/S multiples of 4.35X, 11X and 7.53X, respectively.
Conclusion: Hold CrowdStrike Stock Right Now
As businesses continue prioritizing AI-driven cybersecurity solutions, CrowdStrike’s leadership in threat prevention, response and recovery will only strengthen. The company’s subscription-based model and recurring revenue streams should provide stability and gradual growth, even amid ongoing macroeconomic challenges and geopolitical issues.
However, the company’s premium valuation warrants a cautious approach to the stock. So, it is prudent for existing investors to remain invested, while new investors should wait for a better entry point.
Image: Shutterstock
CrowdStrike Stock Rises 51% YTD: Time to Hold or Book Profits?
Key Takeaways
CrowdStrike Holdings ((CRWD - Free Report) ) shares have soared 51.3% year to date (YTD), outperforming the Zacks Security industry’s 15.6% growth. The stock has also outperformed the returns of other industry peers, including SentinelOne ((S - Free Report) ), Zscaler ((ZS - Free Report) ) and Check Point Software ((CHKP - Free Report) ). Shares of Zscaler and Check Point Software have gained 34.2% and 6.3% YTD, respectively, while SentinelOne shares have plunged 32.1%.
CrowdStrike has been riding on strong enterprise demand for artificial intelligence (AI)-native cybersecurity solutions. But with the stock outperforming the industry and peers, the question arises: Does it still have room to run, or is it time for investors to consider taking profits? Let’s find out.
YTD Price Return Performance
Image Source: Zacks Investment Research
Falcon Flex Adoption Drives CrowdStrike’s Subscription Gains
CrowdStrike’s subscription business model is driving its overall top-line performance. The company’s revenues crossed the $1 billion mark for the fifth consecutive time during the third quarter of fiscal 2026 and marked a year-over-year improvement of nearly 22%. This was partly achieved due to the strong adoption of the Falcon Flex Subscription Model, which allows customers to commit upfront and later choose modules, eliminating procurement friction.
CrowdStrike’s subscription customers, who adopted six or more cloud modules, represented 49% of the total subscription customers at the end of the second quarter. Those with seven or more cloud modules accounted for 34%, and those with eight or more cloud modules represented 24% as of Oct. 31, 2025.
In the third quarter, Annual Recurring Revenues (ARR) from Falcon Flex customers reached $1.35 billion, more than triple last year’s level. Management said Falcon Flex is now one of the most common ways customers choose to buy and expand on the Falcon platform.
Falcon Flex helps customers adopt new modules without long contract steps, which leads to faster platform usage. This is also driving strong re-Flex activity. More than 200 customers expanded their Flex contracts in the third quarter, and some more than doubled their original spending. According to the company, this shows customers see value quickly and are willing to increase their usage once they start with Flex.
Falcon Flex is also supporting growth in key product areas like Next-Generation (Next-Gen) Security Information and Event Management (SIEM), cloud security, identity security, and endpoint protection. Because Flex reduces procurement friction, customers can consolidate more of their security needs into one platform. This strengthens customer relationships and increases the likelihood of multi-module adoption.
If these patterns continue, Falcon Flex could remain one of CrowdStrike’s most important growth drivers through fiscal 2026 and beyond. The Zacks Consensus Estimate for both fiscal 2026 and 2027 revenues indicates a year-over-year increase of around 21%.
Image Source: Zacks Investment Research
CrowdStrike’s Next-Gen SIEM Fuels Growth Momentum
CrowdStrike is seeing strong momentum in its Next-Gen SIEM as part of its mission to protect enterprises against evolving cyber threats. In the third quarter of fiscal 2026, Next-Gen SIEM posted record net new ARR, showing that more customers are choosing it over older SIEM tools that are costly and slow. Management said companies want faster detection, easier workflows, and lower operating costs, which is driving interest in CrowdStrike’s unified SIEM model.
CrowdStrike also reported several large customer wins. A major European bank replaced its legacy SIEM and streaming pipeline with Falcon Next-Gen SIEM, Onum, and Charlotte AI in a large eight-figure deal. The company also highlighted multiple cases where customers moved off older SIEM systems, including Splunk, because Falcon can handle endpoint, cloud, identity, and third-party data in one place.
A key boost came from CrowdStrike’s expanded partnership with Amazon Web Services (“AWS”). Millions of AWS users can now access Falcon Next-Gen SIEM directly inside AWS Security Hub. This gives CrowdStrike a much wider pool of potential customers and may help convert free usage into Flex subscriptions over time.
CrowdStrike’s Premium Valuation Warrants a Cautious Approach
CrowdStrike is currently trading at a high price-to-sales (P/S) multiple, far above the Zacks Security industry. CrowdStrike’s forward 12-month P/S ratio sits at 22.93X, significantly higher than the Zacks Security industry’s forward 12-month P/S ratio of 12.37X.
Forward 12 Month P/S Ratio
Image Source: Zacks Investment Research
CRWD stock also trades at a higher P/S multiple compared with other industry peers, including SentinelOne, Zscaler and Check Point Software. At present, SentinelOne, Zscaler and Check Point Software have P/S multiples of 4.35X, 11X and 7.53X, respectively.
Conclusion: Hold CrowdStrike Stock Right Now
As businesses continue prioritizing AI-driven cybersecurity solutions, CrowdStrike’s leadership in threat prevention, response and recovery will only strengthen. The company’s subscription-based model and recurring revenue streams should provide stability and gradual growth, even amid ongoing macroeconomic challenges and geopolitical issues.
However, the company’s premium valuation warrants a cautious approach to the stock. So, it is prudent for existing investors to remain invested, while new investors should wait for a better entry point.
CrowdStrike currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.