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On Tuesday, Truist Securities affirmed a Buy rating on CrowdStrike Holdings (NASDAQ:CRWD) with a price target of $460.00. According to InvestingPro data, the cybersecurity giant, currently valued at $96.39 billion, is trading near its 52-week high of $455.59, reflecting strong market confidence. InvestingPro analysis indicates the stock is currently overvalued relative to its Fair Value. The cybersecurity firm reported fourth-quarter financial results that surpassed both Truist’s projections and the broader market’s expectations. CrowdStrike’s revenue reached $1.06 billion, marking a 25% year-over-year increase, which exceeded the consensus estimate of $1.03 billion and the company’s own guidance range of $1.03 billion to $1.04 billion. The reported operating income was $217.3 million, translating to a 20.5% margin, which was notably higher than the expected $188 million, or 18.2% margin. This performance aligns with the company’s impressive 75.24% gross profit margin and 31.35% revenue growth over the last twelve months, as reported by InvestingPro.
The company demonstrated its ability to achieve significant operating leverage while still fostering growth, even after increasing customer commitment packages following an outage on July 19th. Net new Annual Recurring Revenue (ARR) was particularly strong, coming in at $224 million, a 21% decrease year-over-year but still well above the consensus estimate of a 32% decrease.
Despite the robust performance in the fourth quarter, CrowdStrike offered conservative guidance for fiscal year 2026. The company projects revenue to be in the range of $4.74 billion to $4.81 billion, suggesting a 20-22% year-over-year increase, which is slightly below the consensus forecast of $4.77 billion. The anticipated operating income for FY26 is set between $944.2 million and $985.1 million, approximately a 20% margin at the midpoint, reflecting the impact of increased discounting offered to customers.
Truist Securities’ analyst highlighted CrowdStrike’s position as a major beneficiary of the recent surge in cyberattacks and its advantageous placement for capitalizing on vendor consolidation due to its extensive product offerings. The firm awaits further details from the company’s earnings call, scheduled for 5:00 pm ET, before revising their financial model and future outlook for CrowdStrike. InvestingPro data shows strong analyst consensus, with 12 additional ProTips and comprehensive financial metrics available to subscribers, including detailed growth projections and valuation analysis in the Pro Research Report.
In other recent news, several analyst firms have updated their outlook on CrowdStrike Holdings, reflecting a positive sentiment towards the company’s future performance. Rosenblatt Securities, UBS, and Canaccord Genuity have all raised their price targets to $450, $450, and $420, respectively, while maintaining Buy ratings on the stock. These updates come as analysts project CrowdStrike to meet or exceed revenue growth estimates and highlight the company’s resilience in recovering from recent challenges. Cantor Fitzgerald also increased its target to $440, citing a quicker recovery from a global outage and potential upselling opportunities.
BofA Securities set a new target of $420, anticipating that CrowdStrike’s upcoming earnings report will align with or surpass Wall Street’s expectations. Analysts have noted the company’s strong engagement with customers and the expansion of its product platform, which includes new initiatives and longer-term contracts. Despite some concerns about pricing dynamics and financial pressures, the overall outlook remains optimistic, with CrowdStrike’s growth prospects bolstered by emerging opportunities in cloud and security information management.
These recent developments suggest that CrowdStrike is well-positioned to navigate current market conditions, with analysts highlighting the company’s strategic efforts to strengthen customer relationships and expand its service offerings. As investors await the company’s earnings report, the focus will be on CrowdStrike’s ability to maintain growth and address any potential challenges.
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