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CrowdStrike Rallies on Strong Quarter as Analysts Cut Targets on Valuation Reset

Analysts frame the pullback as multiple compression, citing resilient demand and platform differentiation despite AI competition headlines.

Overview

  • CrowdStrike reported fiscal Q4 revenue of $1.31 billion, up 23% year over year, with ARR rising 24% to $5.25 billion and a record $331 million in net new ARR.
  • The company swung to GAAP net income of $38.7 million and generated $376 million in free cash flow, ending the quarter with $5.23 billion in cash and equivalents.
  • Management guided Q1 fiscal 2027 revenue to $1.36 billion to $1.364 billion, implying 23% to 24% growth.
  • Jefferies cut its price target to $500 from $600 on February 27 but kept a Buy rating, while Stephens moved to $465 (Overweight) and Evercore ISI to $375 (In Line), citing sector-wide multiple compression rather than weakening fundamentals.
  • CNBC’s Jim Cramer called CrowdStrike his favorite cybersecurity name and attributed recent share pressure to investor fears about generative-AI tools, as company leadership stressed that security operations cannot tolerate AI hallucinations.