On Wednesday, Piper Sandler exhibited confidence in CrowdStrike Holdings (NASDAQ:CRWD) stock by raising the cybersecurity firm's price target significantly. The new target is set at $375, up from the previous $290, while the Overweight rating remains unchanged.
The adjustment follows CrowdStrike's third-quarter financial results, which surpassed both the company's guidance and analysts' expectations. The results were particularly noteworthy given the challenge of a $26 million negative impact to Net New Annual Recurring Revenue (NNARR) from a Federal contract, an event that is not expected to happen again.
Despite the impressive quarter, Piper Sandler anticipates discussions among investors about the company's outlook. CrowdStrike's management indicated an expected acceleration in NNARR in the second half of 2026, which differs from the street's forecast of an overall acceleration in total Annual Recurring Revenue (ARR) growth.
Piper Sandler's stance is that, regardless of the differing views on revenue growth trajectories, CrowdStrike's recent performance demonstrates a positive step. The firm commends CrowdStrike for its execution in capitalizing on the broader opportunity for consolidation within the cybersecurity sector. The new price target of $375 reflects Piper Sandler's optimistic perspective on CrowdStrike's future.
In other recent news, cybersecurity firm CrowdStrike Holdings has reported impressive third-quarter results for fiscal year 2025, surpassing the $1 billion revenue mark, a 29% increase from the previous year. The company's Annual Recurring Revenue (ARR) also saw a significant increase, reaching $4.02 billion, marking a 27% growth from the previous year. Despite operational difficulties earlier in the year, CrowdStrike managed to outpace Wall Street's predictions, showcasing better-than-expected revenue, operating income, and free cash flow.
Truist Securities maintained its positive stance on CrowdStrike, reaffirming a Buy rating and a $375.00 price target, reflecting confidence in the company's ongoing business momentum. The company's robust performance is largely attributed to the effectiveness of its Falcon Flex (NASDAQ:FLEX) subscription model and the acquisition of Adaptive Shield.
CrowdStrike has updated its financial outlook for the full fiscal year 2025, raising its revenue and margin targets. The company has expressed confidence in accelerating net new ARR growth in the latter half of fiscal year 2026 and aims to reach $10 billion in ARR by fiscal year 2031. These recent developments underscore CrowdStrike's commitment to growth in the cybersecurity market.
InvestingPro Insights
CrowdStrike's strong financial performance and market position are further supported by recent data from InvestingPro. The company's revenue growth remains robust, with a 33.07% increase over the last twelve months as of Q2 2025, reaching $3.52 billion. This aligns with Piper Sandler's positive outlook on the company's execution and market opportunity.
InvestingPro Tips highlight CrowdStrike's financial strength, noting that its liquid assets exceed short-term obligations, and it operates with a moderate level of debt. These factors contribute to the company's ability to invest in growth and capitalize on market opportunities, as mentioned in the article.
The market's enthusiasm for CrowdStrike is reflected in its strong stock performance, with a 73.42% price return over the past year. This impressive gain underscores investor confidence in the company's strategy and growth potential in the cybersecurity sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for CrowdStrike, providing deeper insights into the company's valuation, profitability, and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.