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On Wednesday, Stifel analysts increased the price target for CrowdStrike Holdings (NASDAQ: NASDAQ:CRWD) to $495 from the previous $480, while maintaining a Buy rating. Trading near its 52-week high of $491.20 and showing a remarkable 42.85% gain year-to-date, the stock has demonstrated strong momentum. This adjustment follows the company’s fiscal first-quarter 2026 results, which met or exceeded expectations in several areas.
CrowdStrike reported a net new annual recurring revenue (NNARR) of $194 million, surpassing both Stifel’s and the market’s $175 million estimate. With a robust revenue growth rate of 29.39% and maintaining a healthy gross profit margin of 74.92%, the company continues to show strong fundamentals. However, the revenue did not exceed the midpoint or high-end of the company’s guidance for the first time since it became a public entity, attributed to channel partner dynamics.
The quarter highlighted significant adoption of CrowdStrike’s Falcon Flex (NASDAQ:FLEX) purchasing vehicle, with the company securing over $774 million in Flex total contract value, marking a 124% year-over-year increase. The ease with which customers can add modules has led to a trend of customers renewing their Flex contracts more frequently.
Looking ahead, CrowdStrike’s fiscal second-quarter revenue guidance was slightly below market expectations, but its fiscal 2026 revenue guidance was reaffirmed. The company’s fiscal second-quarter 2026 profitability exceeded consensus, prompting management to raise fiscal 2026 profitability guidance. Additionally, targets for fiscal 2027 operating and free cash flow margins were increased. According to InvestingPro, analysts expect the company to be profitable this year, with 14 additional exclusive insights available to subscribers.
In other recent news, CrowdStrike Holdings has announced several developments that are drawing attention from investors. The company reported annual recurring revenue (ARR) of $4.44 billion, marking a 22% year-over-year increase, slightly exceeding market expectations. Despite this, the company’s revenue guidance for the second quarter slightly missed expectations, though management remains optimistic about business acceleration later in the year. CrowdStrike also introduced a $1 billion share buyback program, a move seen as a strategic step to enhance shareholder value.
Analysts have responded to these developments with various adjustments to their stock price targets. TD Cowen raised its target to $500, while RBC Capital increased its target to $510, both maintaining positive outlooks on the stock. Mizuho (NYSE:MFG) raised its target to $450, maintaining a Neutral rating, while Raymond (NSE:RYMD) James increased its target to $485, keeping an Outperform rating. William Blair reiterated its Outperform rating, expressing confidence in CrowdStrike’s strategy despite some revenue challenges.
These analyst actions reflect a mix of optimism and caution, with a focus on CrowdStrike’s strong ARR growth and strategic initiatives. The company’s management has expressed confidence in navigating current challenges and capitalizing on market opportunities, particularly with its Falcon FLEX platform and generative AI offerings. Investors are closely monitoring how these factors will influence CrowdStrike’s performance in the coming months.
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