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Investing.com - Goldman Sachs raised its price target on CrowdStrike Holdings (NASDAQ:CRWD) to $564 from $535 while maintaining a Buy rating following the company’s third-quarter fiscal 2026 earnings report. With a current market capitalization of $129.6 billion, InvestingPro data indicates CrowdStrike is trading above its Fair Value, despite analyst targets suggesting further upside potential.
CrowdStrike’s stock showed a flat reaction despite the company reporting third-quarter net new annual recurring revenue 12% above Street estimates, with revenue 2% above and earnings per share 2% higher than consensus forecasts. The company raised its fiscal 2026 guidance by the margin of the beat. CrowdStrike has demonstrated strong revenue growth of 22.05% over the last twelve months, with analysts forecasting the company will be profitable this fiscal year.
Goldman Sachs noted that the muted market reaction highlights challenges in driving upside against high investor expectations and premium valuation, especially after CrowdStrike has gained 48% year-to-date compared to the Nasdaq’s 14% rise. InvestingPro data shows an even stronger YTD price return of 50.97%, with the stock trading at a high Price/Book multiple of 32.05, reflecting investors’ premium valuation of the company’s growth prospects.
The firm identified positive developments in Falcon Flex, where over 200 customers have "re-flexed" within their first year, doubling quarter-over-quarter. Goldman Sachs views this as validation that customers are tracking ahead of internal demand planning, potentially creating a structural tailwind to CrowdStrike’s net revenue retention.
Goldman Sachs also highlighted emerging product momentum, particularly in the SIEM market, noting CrowdStrike’s recent announcement of native SIEM integration in the AWS security console and the company’s expansion into observability workloads, which frames significant growth opportunities beyond security. While not profitable over the last twelve months, CrowdStrike maintains a strong cash position with liquid assets exceeding short-term obligations and a Cash Return On Invested Capital of 0.27. Discover more insights in CrowdStrike’s comprehensive InvestingPro Research Report, one of 1,400+ deep-dive analyses available for serious investors.
In other recent news, CrowdStrike Holdings reported a strong fiscal third-quarter performance, marked by an acceleration in annual recurring revenue (ARR) growth to 23% year-over-year, surpassing the previous quarter’s 20%. The company’s net new ARR reached $265 million, exceeding consensus estimates of $238 million, reflecting robust business momentum. Several analysts have reiterated their positive outlook on CrowdStrike, with DA Davidson, TD Cowen, and Truist Securities maintaining their Buy ratings, citing strong execution, AI adoption, and platform demand as key drivers. RBC Capital also reiterated its Outperform rating, highlighting the favorable ARR outlook and stronger-than-expected acceleration. Piper Sandler raised its price target to $520 from $450, following the company’s first significant subscription revenue upside of the year, which surpassed analyst expectations by approximately $18 million. TD Cowen emphasized the importance of non-EDR modules as significant growth contributors, while Truist Securities noted the impact of Falcon Flex adoption and large customer deals. These developments underscore CrowdStrike’s increasing traction in the cybersecurity market, driven by a heightened threat environment and growing demand for advanced security solutions.
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