We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CrowdStrike Stock Rises 96% YTD: Time to Hold or Book Profits?
Read MoreHide Full Article
Key Takeaways
CrowdStrike's Next-Gen SIEM ARR topped $695 million, with quarterly net new ARR reaching a record level.
AIDR ARR nearly tripled sequentially as enterprises sought greater visibility and control over AI usage.
CrowdStrike's premium valuation and slowing sales growth support a cautious approach despite strong AI demand
CrowdStrike (CRWD - Free Report) shares have soared 95.9% year to date (YTD), outperforming the Zacks Security industry’s 83.3% growth. The stock has outperformed the returns of other industry peers, such as Qualys Inc. (QLYS - Free Report) , Zscaler (ZS - Free Report) and Check Point Software (CHKP - Free Report) . Shares of Qualys have returned 40%, while Zscaler and Check Point Software shares have plunged 16.1% and 25.1%, respectively.
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
Next-Gen SIEM Momentum Boosts CRWD's Prospects
CrowdStrike’s Next-Gen Security Information and Event Management (SIEM) business continued to grow strongly in the second quarter of fiscal 2027. Ending annual recurring revenue (ARR) for the business surpassed $695 million, while quarterly net new ARR reached a record level. The results show that Next-Gen SIEM is becoming an important part of the company’s broader platform.
CrowdStrike is seeing demand from both new and existing customers. Management said that more customers are standardizing on Falcon as the operating system for the security operations center. The company believes its first-party data advantage and the speed and efficiency of its platform are helping it compete with traditional SIEM products.
CrowdStrike is also competing on cost. Management said Next-Gen SIEM has a disruptive price point because of how the company charges for first-party data generated by its platform. The company sees this as a way to offer faster deployment and better value compared with legacy SIEM products. In the second quarter, a major American power provider replaced a legacy acquired SIEM with CrowdStrike’s Next-Gen SIEM in an eight-figure Falcon Flex deal. Management said the customer selected the product based on its technical capabilities, speed and economics.
The growth of AI could support further demand for Next-Gen SIEM. CrowdStrike said security teams need to monitor activity across AI agents, SaaS, cloud and identity because attacks can move across different environments. This increases the need for a platform like Next-Gen SIEM that can bring security data together. The above-mentioned factors show that continued platform adoption, legacy SIEM replacements and rising AI-related security needs should help Next-Gen SIEM remain an important driver of CRWD's long-term growth.
AIDR is Emerging as a Major Growth Engine for CRWD
CrowdStrike’s AI Detection and Response (AIDR) business is gaining traction as enterprises increase their use of artificial intelligence. AIDR’s ending ARR nearly tripled sequentially in the second quarter of fiscal 2027, on the back of stronger-than-expected demand as customers sought better visibility and control over their AI usage.
AIDR could become an important growth driver because it is a separate and incremental product rather than a replacement for CrowdStrike’s core endpoint detection and response offering. Management said AIDR is priced separately, allowing the company to generate additional revenue from its existing customer base. At the same time, AIDR uses the same Falcon agent that customers already have, which reduces the need to deploy another security agent.
Growing enterprise AI adoption is creating a need for these capabilities. Companies are deploying more AI applications and agents, which increases the risk of data leakage, misuse and unauthorized access. CrowdStrike said a large bank adopted AIDR in an eight-figure Falcon Flex deal to gain AI usage visibility and prevent data exfiltration. The company also said AIDR was adopted alongside identity products as customers worked to secure AI deployments.
CrowdStrike is using a token-based pricing model for AIDR. Customers receive a defined amount of token usage based on the size of their environment and can purchase additional token packs when usage rises. AIDR can be consumed through Falcon Flex, giving customers a simpler way to expand their usage as AI adoption increases. This model could give the company an additional source of recurring and usage-based revenues over time.
AIDR's nearly threefold sequential ARR growth shows strong early momentum, but more time will be needed to determine how large the business can become. For now, the rapid adoption, separate pricing model, easy deployment and growing need to secure AI agents suggest that AIDR could become an important contributor to CrowdStrike’s future growth.
Key Technical Indicator Signals Bullish Trend for CRWD
CRWD shares are trading above their 50-day & 200-day moving averages, a bullish technical signal that indicates the potential for continued upward momentum in the near term.
CRWD’s 50-Day & 200-Day Simple Moving Averages
Image Source: Zacks Investment Research
CRWD'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 32.97X, significantly higher than the Zacks Security industry’s forward 12-month P/S ratio of 18.51X. The Zacks Value Score of F also suggests that CRWD stock is overvalued.
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 Qualys, Zscaler and Check Point Software. At present, Qualys, Zscaler and Check Point Software have P/S multiples of 8.38X, 7.54X and 4.84X, respectively.
CrowdStrike Encounters Slowing Sales Growth
Although CrowdStrike has experienced impressive growth since its IPO, 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. However, the growth rate decelerated to 29% in fiscal 2025 and further decelerated to 22% in fiscal 2026.
For fiscal 2027, CrowdStrike expects total revenues to be in the range of $5.991-$6.011 billion, indicating a year-over-year increase of 25%. While the Zacks Consensus Estimate for fiscal 2027 revenues indicates a year-over-year increase of 24.5%, the same for fiscal 2028 suggests that the top-line growth will further decelerate to around 21.6%. This indicates that the deceleration in CrowdStrike's revenue growth is likely to continue in the upcoming years.
Image Source: Zacks Investment Research
Conclusion: Hold CRWD 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 continues to see strong adoption of its Falcon platform, with Next-Gen SIEM and AIDR providing additional growth opportunities as enterprises increase their use of AI.
View the Zacks #1 Rank List
Image: Shutterstock
CrowdStrike Stock Rises 96% YTD: Time to Hold or Book Profits?
Key Takeaways
CrowdStrike (CRWD - Free Report) shares have soared 95.9% year to date (YTD), outperforming the Zacks Security industry’s 83.3% growth. The stock has outperformed the returns of other industry peers, such as Qualys Inc. (QLYS - Free Report) , Zscaler (ZS - Free Report) and Check Point Software (CHKP - Free Report) . Shares of Qualys have returned 40%, while Zscaler and Check Point Software shares have plunged 16.1% and 25.1%, respectively.
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
Next-Gen SIEM Momentum Boosts CRWD's Prospects
CrowdStrike’s Next-Gen Security Information and Event Management (SIEM) business continued to grow strongly in the second quarter of fiscal 2027. Ending annual recurring revenue (ARR) for the business surpassed $695 million, while quarterly net new ARR reached a record level. The results show that Next-Gen SIEM is becoming an important part of the company’s broader platform.
CrowdStrike is seeing demand from both new and existing customers. Management said that more customers are standardizing on Falcon as the operating system for the security operations center. The company believes its first-party data advantage and the speed and efficiency of its platform are helping it compete with traditional SIEM products.
CrowdStrike is also competing on cost. Management said Next-Gen SIEM has a disruptive price point because of how the company charges for first-party data generated by its platform. The company sees this as a way to offer faster deployment and better value compared with legacy SIEM products. In the second quarter, a major American power provider replaced a legacy acquired SIEM with CrowdStrike’s Next-Gen SIEM in an eight-figure Falcon Flex deal. Management said the customer selected the product based on its technical capabilities, speed and economics.
The growth of AI could support further demand for Next-Gen SIEM. CrowdStrike said security teams need to monitor activity across AI agents, SaaS, cloud and identity because attacks can move across different environments. This increases the need for a platform like Next-Gen SIEM that can bring security data together. The above-mentioned factors show that continued platform adoption, legacy SIEM replacements and rising AI-related security needs should help Next-Gen SIEM remain an important driver of CRWD's long-term growth.
AIDR is Emerging as a Major Growth Engine for CRWD
CrowdStrike’s AI Detection and Response (AIDR) business is gaining traction as enterprises increase their use of artificial intelligence. AIDR’s ending ARR nearly tripled sequentially in the second quarter of fiscal 2027, on the back of stronger-than-expected demand as customers sought better visibility and control over their AI usage.
AIDR could become an important growth driver because it is a separate and incremental product rather than a replacement for CrowdStrike’s core endpoint detection and response offering. Management said AIDR is priced separately, allowing the company to generate additional revenue from its existing customer base. At the same time, AIDR uses the same Falcon agent that customers already have, which reduces the need to deploy another security agent.
Growing enterprise AI adoption is creating a need for these capabilities. Companies are deploying more AI applications and agents, which increases the risk of data leakage, misuse and unauthorized access. CrowdStrike said a large bank adopted AIDR in an eight-figure Falcon Flex deal to gain AI usage visibility and prevent data exfiltration. The company also said AIDR was adopted alongside identity products as customers worked to secure AI deployments.
CrowdStrike is using a token-based pricing model for AIDR. Customers receive a defined amount of token usage based on the size of their environment and can purchase additional token packs when usage rises. AIDR can be consumed through Falcon Flex, giving customers a simpler way to expand their usage as AI adoption increases. This model could give the company an additional source of recurring and usage-based revenues over time.
AIDR's nearly threefold sequential ARR growth shows strong early momentum, but more time will be needed to determine how large the business can become. For now, the rapid adoption, separate pricing model, easy deployment and growing need to secure AI agents suggest that AIDR could become an important contributor to CrowdStrike’s future growth.
Key Technical Indicator Signals Bullish Trend for CRWD
CRWD shares are trading above their 50-day & 200-day moving averages, a bullish technical signal that indicates the potential for continued upward momentum in the near term.
CRWD’s 50-Day & 200-Day Simple Moving Averages
Image Source: Zacks Investment Research
CRWD'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 32.97X, significantly higher than the Zacks Security industry’s forward 12-month P/S ratio of 18.51X. The Zacks Value Score of F also suggests that CRWD stock is overvalued.
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 Qualys, Zscaler and Check Point Software. At present, Qualys, Zscaler and Check Point Software have P/S multiples of 8.38X, 7.54X and 4.84X, respectively.
CrowdStrike Encounters Slowing Sales Growth
Although CrowdStrike has experienced impressive growth since its IPO, 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. However, the growth rate decelerated to 29% in fiscal 2025 and further decelerated to 22% in fiscal 2026.
For fiscal 2027, CrowdStrike expects total revenues to be in the range of $5.991-$6.011 billion, indicating a year-over-year increase of 25%. While the Zacks Consensus Estimate for fiscal 2027 revenues indicates a year-over-year increase of 24.5%, the same for fiscal 2028 suggests that the top-line growth will further decelerate to around 21.6%. This indicates that the deceleration in CrowdStrike's revenue growth is likely to continue in the upcoming years.
Image Source: Zacks Investment Research
Conclusion: Hold CRWD 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 continues to see strong adoption of its Falcon platform, with Next-Gen SIEM and AIDR providing additional growth opportunities as enterprises increase their use of AI.
However, the company’s premium valuation and slowing sales growth warrant a cautious approach to the stock. CrowdStrike currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.