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CRWD vs. CSCO: Which Cybersecurity Stock Has an Edge Right Now?
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Key Takeaways
CrowdStrike's Falcon Flex ARR topped $1.35B in Q3 fiscal 2026, but overall revenue growth is decelerating.
Cisco Systems is expanding security offerings, with strong Splunk ARR growth and rising firewall orders.
CSCO trades at a much lower P/S than CRWD, giving Cisco an edge on valuation and stability.
CrowdStrike (CRWD - Free Report) and Cisco Systems (CSCO - Free Report) are well-known players in the cybersecurity domain. While CrowdStrike specializes in endpoint protection and extended detection and response, offering AI-native cloud security through its Falcon platform, Cisco Systems is growing its presence based on Threat Intelligence, Detection, and Response offerings, which include the offerings from Splunk and Network Security.
CrowdStrike and Cisco Systems are capitalizing on the rapid improvement of the cybersecurity space, fueled by the rise of complex attacks, including credential theft and abuse, remote desktop protocol attacks and social engineering-based initial access. Per a Mordor Intelligence report, the cybersecurity market is projected to witness a CAGR of 12.28% from 2026 to 2030.
With this strong industry growth forecast, the question remains: Which stock has more upside potential? Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case.
The Case for CrowdStrike Stock
CrowdStrike provides its cybersecurity services mainly through its Falcon platform. CrowdStrike’s Falcon platform is renowned for being the industry’s first multi-tenant, cloud native, intelligent security solution. The Falcon platform helps secure workloads across on-premise, cloud-based and virtualized environments running on several endpoints, such as desktops, laptops, servers, virtual machines and IoT devices.
CrowdStrike’s cloud-based Falcon platform currently provides 29 cloud modules via a software-as-a-service subscription model that is categorized under three categories: Endpoint Security, Security & IT Operations and Threat Intelligence. The share of subscription-based sales to CrowdStrike’s total revenues grew from 72% in fiscal 2017 to 95% in fiscal 2025.
In the third quarter of fiscal 2026, Annual Recurring Revenues (ARR) from Falcon Flex customers reached $1.35 billion, growing more than 200% year over year. Over 200 customers expanded their Flex contracts in the third quarter, and some more than doubled their original spending. This shows that customers see value quickly and are willing to increase their usage once they start with Flex.
However, CrowdStrike’s recent quarterly reports have shown a deceleration in its growth rate. The company's revenue growth, while still robust, is not as explosive as in previous years. CrowdStrike had enjoyed more than 35% year-over-year top-line growth till fiscal 2024. The growth rate decelerated in fiscal 2025 to 29%. This trend is expected to continue in fiscal 2026. For fiscal 2026, CrowdStrike expects total revenues to be in the range of $4.797 billion to $4.807 billion, which indicates that the top-line growth is expected to decelerate to around 21-22%.
The Case for Cisco Systems Stock
Cisco Systems is making steady progress in its security business. The company has added several new security products, such as Secure Access, XDR, Hypershield, AI Defense and refreshed firewalls. These newer products are seeing good customer adoption. In the first quarter of fiscal 2026, almost 3,000 customers have already bought these new or refreshed security solutions.
Splunk, which is now part of Cisco Systems, showed strong signs of growth. Splunk's ARR and remaining performance obligations grew at double-digit rates, which shows that more customers are choosing its security solutions, demonstrating that long-term demand remains strong. Cisco closed one of its largest Splunk deals in the first quarter, helped by the combined efforts of Cisco’s and Splunk’s sales teams. Orders for Cisco’s next-generation firewalls grew in the mid-teens range.
Cisco Systems is expanding its security capabilities with new products, such as Cisco Unified Edge and Cisco Data Fabric, that support AI-related needs. Cisco Unified Edge is a platform that brings compute, networking and storage together in one system. Unified Edge is designed to handle real-time inferencing for agentic and physical AI workloads, helping customers deploy and manage AI at scale. Cisco Data Fabric is a Splunk-powered architecture that helps customers unify and manage machine data from many different sources. The goal is to help organizations use their own data to build AI models.
Overall, Cisco Systems is expanding its security capabilities with new products, stronger Splunk performance and more focus on AI-driven security needs. The above-mentioned factors demonstrate the company’s efforts to strengthen its position in the security market.
How Do Earnings Estimates Compare for CRWD & CSCO?
Cisco Systems has a steady earnings growth outlook compared with CrowdStrike.
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2026 earnings is pegged at $3.71 per share, unchanged over the past 30 days. This indicates a year-over-year decline of 5.6%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cisco Systems’ fiscal 2026 earnings is pegged at $4.10 per share, unchanged over the past 30 days. This indicates a 7.61% increase year over year.
Image Source: Zacks Investment Research
CRWD vs. CSCO: Price Performance and Valuation
In the past six months, Cisco Systems shares have risen 11.2%, while shares of CrowdStrike have lost 5.8%.
CRWD Vs. CSCO: 6-Month Price Return Performance
Image Source: Zacks Investment Research
Currently, Cisco Systems is trading at a forward sales multiple of 4.81X, lower than CrowdStrike’s forward sales multiple of 19.75X. CrowdStrike does seem pricey compared with Cisco Systems. In contrast, Cisco Systems’ reasonable valuation makes it more attractive for investors looking for value and stability.
CRWD vs. CSCO: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion: CSCO Has an Edge Over CRWD
Both CrowdStrike and Cisco Systems are key players in the cybersecurity space, but CrowdStrike is witnessing a slowdown in its sales growth. In contrast, Cisco Systems’ strong security portfolio, driven by the acquisition of Splunk, is aiding its top-line growth. Cisco Systems’ reasonable valuation offers some downside protection as well, making the stock an attractive buy, particularly for investors seeking exposure to cybersecurity growth at a fair price.
Image: Bigstock
CRWD vs. CSCO: Which Cybersecurity Stock Has an Edge Right Now?
Key Takeaways
CrowdStrike (CRWD - Free Report) and Cisco Systems (CSCO - Free Report) are well-known players in the cybersecurity domain. While CrowdStrike specializes in endpoint protection and extended detection and response, offering AI-native cloud security through its Falcon platform, Cisco Systems is growing its presence based on Threat Intelligence, Detection, and Response offerings, which include the offerings from Splunk and Network Security.
CrowdStrike and Cisco Systems are capitalizing on the rapid improvement of the cybersecurity space, fueled by the rise of complex attacks, including credential theft and abuse, remote desktop protocol attacks and social engineering-based initial access. Per a Mordor Intelligence report, the cybersecurity market is projected to witness a CAGR of 12.28% from 2026 to 2030.
With this strong industry growth forecast, the question remains: Which stock has more upside potential? Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case.
The Case for CrowdStrike Stock
CrowdStrike provides its cybersecurity services mainly through its Falcon platform. CrowdStrike’s Falcon platform is renowned for being the industry’s first multi-tenant, cloud native, intelligent security solution. The Falcon platform helps secure workloads across on-premise, cloud-based and virtualized environments running on several endpoints, such as desktops, laptops, servers, virtual machines and IoT devices.
CrowdStrike’s cloud-based Falcon platform currently provides 29 cloud modules via a software-as-a-service subscription model that is categorized under three categories: Endpoint Security, Security & IT Operations and Threat Intelligence. The share of subscription-based sales to CrowdStrike’s total revenues grew from 72% in fiscal 2017 to 95% in fiscal 2025.
In the third quarter of fiscal 2026, Annual Recurring Revenues (ARR) from Falcon Flex customers reached $1.35 billion, growing more than 200% year over year. Over 200 customers expanded their Flex contracts in the third quarter, and some more than doubled their original spending. This shows that customers see value quickly and are willing to increase their usage once they start with Flex.
However, CrowdStrike’s recent quarterly reports have shown a deceleration in its growth rate. The company's revenue growth, while still robust, is not as explosive as in previous years. CrowdStrike had enjoyed more than 35% year-over-year top-line growth till fiscal 2024. The growth rate decelerated in fiscal 2025 to 29%. This trend is expected to continue in fiscal 2026. For fiscal 2026, CrowdStrike expects total revenues to be in the range of $4.797 billion to $4.807 billion, which indicates that the top-line growth is expected to decelerate to around 21-22%.
The Case for Cisco Systems Stock
Cisco Systems is making steady progress in its security business. The company has added several new security products, such as Secure Access, XDR, Hypershield, AI Defense and refreshed firewalls. These newer products are seeing good customer adoption. In the first quarter of fiscal 2026, almost 3,000 customers have already bought these new or refreshed security solutions.
Splunk, which is now part of Cisco Systems, showed strong signs of growth. Splunk's ARR and remaining performance obligations grew at double-digit rates, which shows that more customers are choosing its security solutions, demonstrating that long-term demand remains strong. Cisco closed one of its largest Splunk deals in the first quarter, helped by the combined efforts of Cisco’s and Splunk’s sales teams. Orders for Cisco’s next-generation firewalls grew in the mid-teens range.
Cisco Systems is expanding its security capabilities with new products, such as Cisco Unified Edge and Cisco Data Fabric, that support AI-related needs. Cisco Unified Edge is a platform that brings compute, networking and storage together in one system. Unified Edge is designed to handle real-time inferencing for agentic and physical AI workloads, helping customers deploy and manage AI at scale. Cisco Data Fabric is a Splunk-powered architecture that helps customers unify and manage machine data from many different sources. The goal is to help organizations use their own data to build AI models.
Overall, Cisco Systems is expanding its security capabilities with new products, stronger Splunk performance and more focus on AI-driven security needs. The above-mentioned factors demonstrate the company’s efforts to strengthen its position in the security market.
How Do Earnings Estimates Compare for CRWD & CSCO?
Cisco Systems has a steady earnings growth outlook compared with CrowdStrike.
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2026 earnings is pegged at $3.71 per share, unchanged over the past 30 days. This indicates a year-over-year decline of 5.6%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cisco Systems’ fiscal 2026 earnings is pegged at $4.10 per share, unchanged over the past 30 days. This indicates a 7.61% increase year over year.
Image Source: Zacks Investment Research
CRWD vs. CSCO: Price Performance and Valuation
In the past six months, Cisco Systems shares have risen 11.2%, while shares of CrowdStrike have lost 5.8%.
CRWD Vs. CSCO: 6-Month Price Return Performance
Image Source: Zacks Investment Research
Currently, Cisco Systems is trading at a forward sales multiple of 4.81X, lower than CrowdStrike’s forward sales multiple of 19.75X. CrowdStrike does seem pricey compared with Cisco Systems. In contrast, Cisco Systems’ reasonable valuation makes it more attractive for investors looking for value and stability.
CRWD vs. CSCO: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion: CSCO Has an Edge Over CRWD
Both CrowdStrike and Cisco Systems are key players in the cybersecurity space, but CrowdStrike is witnessing a slowdown in its sales growth. In contrast, Cisco Systems’ strong security portfolio, driven by the acquisition of Splunk, is aiding its top-line growth. Cisco Systems’ reasonable valuation offers some downside protection as well, making the stock an attractive buy, particularly for investors seeking exposure to cybersecurity growth at a fair price.
Currently, Cisco Systems carries a Zacks Rank #2 (Buy), giving the stock a clear edge over CrowdStrike, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.