RBC Capital raises CrowdStrike stock price target to $510 on strong outlook

On Wednesday, RBC Capital analysts raised the price target for CrowdStrike Holdings (NASDAQ: NASDAQ:CRWD) stock to $510 from $500, maintaining an Outperform rating. The stock, currently trading near its 52-week high of $491.20, has delivered an impressive 60% return over the past year according to InvestingPro data. This decision follows a robust performance in the first quarter of fiscal year 2026, where the company’s net new annual recurring revenue (NNARR) exceeded high expectations.

While the revenue figures were described as somewhat inconsistent due to the success of CrowdStrike’s Customer Credit Program (CCP), the company provided guidance for the second quarter NNARR above market expectations. Management expressed optimism about accelerating NNARR in the second half of fiscal 2026, aided by a relatively easy comparison following last year’s outage.

The analysts noted the company’s improving profitability and announced a new $1 billion share repurchase plan as positive developments. However, no updates were provided regarding the ongoing U.S. Federal investigation.

RBC Capital’s decision to raise the price target reflects increased estimates based on these factors, despite the revenue challenges faced in the first quarter.

In other recent news, CrowdStrike Holdings reported impressive financial results for the fiscal first quarter of 2026, with earnings per share of $0.73, surpassing both analysts’ estimates and the consensus estimate. The company’s revenue reached $1,103.4 million, slightly below consensus expectations but exceeding its own forecast. CrowdStrike’s annual recurring revenue (ARR) climbed to $4.44 billion, marking a 22% year-over-year increase, and surpassing market expectations. This growth is supported by strong demand for its Falcon Flex (NASDAQ:FLEX) platform, which contributed significantly to the company’s total deal value.

Additionally, CrowdStrike announced a $1 billion share repurchase program, demonstrating management’s confidence in the company’s long-term strategy. Analysts at William Blair and Raymond (NSE:RYMD) James maintained their Outperform ratings, with the latter raising the price target to $485, reflecting confidence in CrowdStrike’s future performance. Truist Securities also increased the price target to $500, citing the company’s success with product adoption and customer expansion. Meanwhile, Mizuho (NYSE:MFG) analysts raised the price target to $450, maintaining a Neutral rating due to emerging risk factors.

Despite some challenges, such as the revenue guidance miss, CrowdStrike’s management remains optimistic about future business acceleration. These developments highlight the company’s strategic initiatives and its focus on enhancing market position through product innovations.

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