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Investing.com - DA Davidson reduced its price target on CrowdStrike Holdings (NASDAQ:CRWD) to $490 from $530 while maintaining a Buy rating on the cybersecurity company. The stock, currently trading at $422.61, has delivered an impressive 60% return over the past year. According to InvestingPro data, analyst targets for the company range from $330 to $610.
The firm noted CrowdStrike’s annual recurring revenue (ARR) reached $4.66 billion, exceeding consensus estimates of $4.64 billion and representing 20% year-over-year growth, slightly down from 22% growth in the previous quarter. This performance aligns with the company’s broader growth trajectory, as InvestingPro data shows overall revenue growth of 25.94% and an impressive gross profit margin of 74.48%.
Net new annual recurring revenue (NNARR) showed improvement at $221 million, growing 2% year-over-year compared to an 8% decline in the previous quarter, with strong performance in Flex, large deals, and non-EDR (Endpoint Detection and Response) modules. With a market capitalization of $105.57 billion, CrowdStrike maintains strong liquidity, as evidenced by its current ratio of 1.85. InvestingPro subscribers have access to over 10 additional key insights about CRWD’s financial health and growth potential.
DA Davidson highlighted CrowdStrike’s third-quarter and second-half ARR outlook as significantly ahead of consensus expectations, projecting over 40% year-over-year growth in second-half NNARR versus consensus estimates of 29%, with ARR growth expected to reaccelerate to over 22% by the fourth quarter.
The analyst acknowledged that revenue guidance was "a bit light" as CrowdStrike Cloud Platform (CCP) impacts continue to create a near-term divergence between ARR and revenue growth, an issue expected to resolve in fiscal year 2027.
In other recent news, CrowdStrike Holdings reported strong earnings for the second quarter of fiscal year 2026, surpassing analysts’ expectations. The company achieved an earnings per share of $0.93, outperforming the projected $0.83, which represents a 12.05% surprise. Revenue for the quarter was $1.17 billion, slightly above the anticipated $1.15 billion. These results indicate positive financial performance for the cybersecurity firm. Additionally, Piper Sandler has adjusted its price target for CrowdStrike to $450, down from $505, while maintaining a Neutral rating. The adjustment follows CrowdStrike’s report that its Net New Annual Recurring Revenue returned to positive growth. This development comes as the company moves past the comparative period affected by last year’s security incident. These recent developments highlight key financial and market activities surrounding CrowdStrike.
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