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Cybersecurity Demand Fuels CrowdStrike's Earnings Beat: ETFs in Focus
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Key Takeaways
CrowdStrike's revenues jumped 26% year over year, beating the Zacks Consensus Estimate.
AI adoption is fueling cybersecurity risks and demand for advanced security solutions.
Cybersecurity ETFs offer investors exposure to CrowdStrike and the broader sector.
CrowdStrike (CRWD - Free Report) came up with second-quarter fiscal 2027 earnings on Aug. 26, after market close. The company reported total revenues of $1.47 billion for the quarter, which surpassed the Zacks Consensus Estimate of $1.44 billion by 2.15%.
CRWD’s revenues for the quarter surged a staggering 25.83% from the year-ago quarter. The company’s annual recurring revenue (ARR) surged around 25% from the year-ago quarter, reaching $5.84 billion, of which $332.8 million was net new ARR added in the quarter.
CrowdStrike reported net income of $5.3 million, reversing a net loss of $70.2 million in the year-ago quarter. CRWD’s second-quarter fiscal 2027 non-GAAP earnings of 31 cents per share surpassed the Zacks Consensus Estimate of 29 cents.
CrowdStrike’s founder and CEO, George Kurtz, hailed the second quarter as the best in the company’s history, labeling it a “record-breaking quarter,” as quoted on the company’s press release. Kurtz said the “Mythos moment” accelerated mainstream recognition that AI adoption requires robust security, creating a significant growth opportunity for CrowdStrike.
As quoted on the abovementioned press release, Kurtz stated “Every enterprise will run on AI, and securing it is the largest market opportunity in our history.” Reflecting the cybersecurity company's CEO’s optimistic outlook, CrowdStrike shares rose about 9% in pre-market trading on Aug. 27.
CrowdStrike’s strong second-quarter fiscal 2027 results and share performance underscore the favorable outlook for the cybersecurity market and growing investor confidence in the sector. As AI adoption accelerates, cybersecurity companies are well positioned to benefit from increased spending, making the sector a potentially resilient beneficiary of the broader AI investment cycle.
What's Powering CrowdStrike's Strong Quarter?
The growing adoption of AI is also increasing cybersecurity risks, driving demand for more advanced security solutions. This favorable backdrop has created significant growth opportunities for CrowdStrike and other cybersecurity companies, with CRWD shares surging about 66% year to date and nearly 80% over the past year.
As per Reuters, cybersecurity tests by Meta, Anthropic and OpenAI demonstrated that increasingly capable AI models can exploit vulnerabilities and breach systems, underscoring the rising security risks associated with AI and the need for robust cybersecurity products. As demand for CrowdStrike’s cloud-based platform continues to grow, these trends could create additional growth opportunities for the company.
The rising threat of AI-enabled cybercrime and its rapidly evolving nature is likely to become even more pronounced as AI adoption accelerates and Big Tech ramps up spending on AI infrastructure, driving demand for cybersecurity solutions alongside it.
According to CNBC, growing adoption of agentic AI is fueling demand for security tools to counter increasingly sophisticated threats. Additionally, the performance of CrowdStrike’s Falcon Flex subscription model underscores robust demand for its products and serves as an important driver of recurring revenue growth.
Per the abovementioned CNBC article, CrowdStrike’s Falcon Flex offering more than doubled year over year, reflecting growing demand for its cybersecurity platform. According to the company’s CFO, Burt Podbere, as quoted on the CNBC article, the Flex model is helping CrowdStrike secure larger, longer-term deals while enabling customers to consolidate multiple products on a single platform.
Into CRWD’s Stock Outlook
CrowdStrike currently has an average brokerage recommendation (ABR) of 1.69 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations made by 51 brokerage firms. The current ABR remains unchanged compared to a month ago.
Of the 51 recommendations deriving the current ABR, 34 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 66.67% and 5.88% of all recommendations, indicating that the majority of the analysts remain bullish.
Based on short-term price targets offered by 47 analysts, the average price target for CrowdStrike Holdings comes to $210.83, representing an increase of 11.44% from its current level, with the forecasts ranging from a low of $103.00 to a high of $256.00. Currently, CRWD stock is priced at $189.18 (as of market close on Aug. 26) and has a Zacks Rank #3 (Hold), along with a Growth and Momentum Score of A.
The broader cybersecurity sector has also been gaining momentum, further highlighting its growing investment appeal.
The S&P Kensho Cyber Security Index, which tracks companies with significant exposure to cybersecurity-related activities, has gained around 3.22% so far in August and 31.68% year to date, bringing its gains over the past year to an impressive 27.98%. The strong performance underscores growing investor interest in cybersecurity and highlights the sector’s increasing appeal as an investment theme.
Below, we highlight a few ETFs offering exposure to CrowdStrike and the broader cybersecurity sector.
Corgi AI Cybersecurity ETF (XA - Free Report) has an exposure of 10.35% to CRWD.
First Trust NASDAQ Cybersecurity ETF (CIBR - Free Report) has an exposure of 7.88% to CRWD.
WisdomTree Cybersecurity Fund (WCBR - Free Report) has an exposure of 7.17% to CRWD.
Global X Cybersecurity ETF (BUG - Free Report) has an exposure of 6.88% to CRWD.
Amplify Cybersecurity ETF (HACK - Free Report) has an exposure of 5.25% to CRWD.
View the Zacks #1 Rank List
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Cybersecurity Demand Fuels CrowdStrike's Earnings Beat: ETFs in Focus
Key Takeaways
CrowdStrike (CRWD - Free Report) came up with second-quarter fiscal 2027 earnings on Aug. 26, after market close. The company reported total revenues of $1.47 billion for the quarter, which surpassed the Zacks Consensus Estimate of $1.44 billion by 2.15%.
CRWD’s revenues for the quarter surged a staggering 25.83% from the year-ago quarter. The company’s annual recurring revenue (ARR) surged around 25% from the year-ago quarter, reaching $5.84 billion, of which $332.8 million was net new ARR added in the quarter.
CrowdStrike reported net income of $5.3 million, reversing a net loss of $70.2 million in the year-ago quarter. CRWD’s second-quarter fiscal 2027 non-GAAP earnings of 31 cents per share surpassed the Zacks Consensus Estimate of 29 cents.
CrowdStrike’s founder and CEO, George Kurtz, hailed the second quarter as the best in the company’s history, labeling it a “record-breaking quarter,” as quoted on the company’s press release. Kurtz said the “Mythos moment” accelerated mainstream recognition that AI adoption requires robust security, creating a significant growth opportunity for CrowdStrike.
As quoted on the abovementioned press release, Kurtz stated “Every enterprise will run on AI, and securing it is the largest market opportunity in our history.” Reflecting the cybersecurity company's CEO’s optimistic outlook, CrowdStrike shares rose about 9% in pre-market trading on Aug. 27.
CrowdStrike’s strong second-quarter fiscal 2027 results and share performance underscore the favorable outlook for the cybersecurity market and growing investor confidence in the sector. As AI adoption accelerates, cybersecurity companies are well positioned to benefit from increased spending, making the sector a potentially resilient beneficiary of the broader AI investment cycle.
What's Powering CrowdStrike's Strong Quarter?
The growing adoption of AI is also increasing cybersecurity risks, driving demand for more advanced security solutions. This favorable backdrop has created significant growth opportunities for CrowdStrike and other cybersecurity companies, with CRWD shares surging about 66% year to date and nearly 80% over the past year.
As per Reuters, cybersecurity tests by Meta, Anthropic and OpenAI demonstrated that increasingly capable AI models can exploit vulnerabilities and breach systems, underscoring the rising security risks associated with AI and the need for robust cybersecurity products. As demand for CrowdStrike’s cloud-based platform continues to grow, these trends could create additional growth opportunities for the company.
The rising threat of AI-enabled cybercrime and its rapidly evolving nature is likely to become even more pronounced as AI adoption accelerates and Big Tech ramps up spending on AI infrastructure, driving demand for cybersecurity solutions alongside it.
According to CNBC, growing adoption of agentic AI is fueling demand for security tools to counter increasingly sophisticated threats. Additionally, the performance of CrowdStrike’s Falcon Flex subscription model underscores robust demand for its products and serves as an important driver of recurring revenue growth.
Per the abovementioned CNBC article, CrowdStrike’s Falcon Flex offering more than doubled year over year, reflecting growing demand for its cybersecurity platform. According to the company’s CFO, Burt Podbere, as quoted on the CNBC article, the Flex model is helping CrowdStrike secure larger, longer-term deals while enabling customers to consolidate multiple products on a single platform.
Into CRWD’s Stock Outlook
CrowdStrike currently has an average brokerage recommendation (ABR) of 1.69 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations made by 51 brokerage firms. The current ABR remains unchanged compared to a month ago.
Of the 51 recommendations deriving the current ABR, 34 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 66.67% and 5.88% of all recommendations, indicating that the majority of the analysts remain bullish.
Based on short-term price targets offered by 47 analysts, the average price target for CrowdStrike Holdings comes to $210.83, representing an increase of 11.44% from its current level, with the forecasts ranging from a low of $103.00 to a high of $256.00. Currently, CRWD stock is priced at $189.18 (as of market close on Aug. 26) and has a Zacks Rank #3 (Hold), along with a Growth and Momentum Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ETFs to Invest in CrowdStrike and Cybersecurity
The broader cybersecurity sector has also been gaining momentum, further highlighting its growing investment appeal.
The S&P Kensho Cyber Security Index, which tracks companies with significant exposure to cybersecurity-related activities, has gained around 3.22% so far in August and 31.68% year to date, bringing its gains over the past year to an impressive 27.98%. The strong performance underscores growing investor interest in cybersecurity and highlights the sector’s increasing appeal as an investment theme.
Below, we highlight a few ETFs offering exposure to CrowdStrike and the broader cybersecurity sector.
Corgi AI Cybersecurity ETF (XA - Free Report) has an exposure of 10.35% to CRWD.
First Trust NASDAQ Cybersecurity ETF (CIBR - Free Report) has an exposure of 7.88% to CRWD.
WisdomTree Cybersecurity Fund (WCBR - Free Report) has an exposure of 7.17% to CRWD.
Global X Cybersecurity ETF (BUG - Free Report) has an exposure of 6.88% to CRWD.
Amplify Cybersecurity ETF (HACK - Free Report) has an exposure of 5.25% to CRWD.