Strong performance and guidance exceeding expectations highlight the AI tailwind! CrowdStrike(CRWD.US) receives positive ratings from major bank analysts

Cybersecurity giant CrowdStrike (CRWD.US) reported better-than-expected Q4 results and guidance for fiscal year 2026, receiving positive reviews from Wall Street analysts.

The earnings report showed that CrowdStrike’s Q4 revenue grew significantly by 23% year-over-year to $1.305 billion, exceeding the analysts’ average expectation of about $1.3 billion. Subscription revenue accounted for approximately $1.242 billion, reflecting a 23% year-over-year increase. The Non-GAAP adjusted earnings per share were $1.12, a 38% increase year-over-year, and higher than the analysts’ average expectation of $1.10. As of January 31, 2026, the company’s annual recurring revenue (ARR) rose significantly by 24% year-over-year to $5.25 billion, with $330.7 million being the net new ARR added in Q4—marking a record growth of 47% year-over-year, far exceeding the analysts’ average expectation of about $300 million.

Regarding performance outlook, for the first quarter of fiscal year 2027, CrowdStrike expects an ARR range of $5.5018 billion to $5.5038 billion; revenue guidance is approximately $1.36 billion to $1.364 billion, slightly above the analysts’ average expectation of about $1.36 billion; the adjusted earnings per share guidance range is $1.06 to $1.07, roughly in line with analysts’ average expectations. For the full fiscal year 2027, CrowdStrike expects an ARR range of $6.4658 billion to $6.5164 billion; revenue guidance is set at $5.8676 billion to $5.9276 billion, exceeding the analysts’ average expectation of about $5.86 billion to $5.87 billion; the adjusted earnings per share guidance range is $4.78 to $4.90, slightly higher than analysts’ average expectations.

After CrowdStrike released this latest earnings report, RBC Capital Markets maintained an “outperform” rating on the stock with a target price of $550. Analyst Matthew Hedberg stated, “CrowdStrike delivered a very strong quarterly report, achieving accelerated growth at scale and raising the annual recurring revenue forecast for fiscal year 2027. The growth is broad-based, and the Flex/Re-Flex products continue to drive business momentum. Even with the upward revision of the fiscal year 2027 expectations, we still believe there is potential for upside throughout the year, which may indicate accelerated growth in annual recurring revenue.” The analysts noted that CrowdStrike, as a cybersecurity integrator achieving accelerated growth at scale, remains a preferred choice and is expected to benefit from the adoption of artificial intelligence (AI).

Wedbush also maintained an “outperform” rating on CrowdStrike but lowered the target price from $600 to $550. Analyst Dan Ives stated that CrowdStrike’s Q4 performance slightly exceeded expectations in terms of revenue and profit while providing a strong fiscal year 2027 guidance that surpassed market expectations. The analysts stated, “CrowdStrike remains on the Ives AI 30 list. We continue to believe that amid the current sell-off in the software sector, CrowdStrike’s position as the ‘gold standard’ in cybersecurity remains solid. The company’s innovative and industry-leading Falcon platform is becoming increasingly important in the new landscape of modern AI threats.” The analysts added that CrowdStrike remains one of their top picks in cybersecurity for 2026, as they believe the market underestimates the growth potential embedded in the company’s long-term AI growth story.

Evercore maintained a “market perform” rating on CrowdStrike but raised the target price from $375 to $395. Analyst Peter Levine stated, “CrowdStrike’s Q4 performance was solid, generally consistent with the tone from the previous quarter, indicating rigorous execution and resilient fundamentals, but without significant surprises. We believe this quarter’s performance and guidance are balanced and generally in line with expectations.”

Morgan Stanley maintained a “hold” rating on CrowdStrike while lowering the target price from $537 to $487. Analyst Meta Marshall and her team stated, “CrowdStrike’s Q4 performance significantly exceeded expectations, with the company indicating continued expansion in Flex, Cloud, next-gen SIEM, and Identity products, while EDR products continue to accelerate. We see tailwinds from AI and overall platformization, which encourages us following the recent pullback in the stock price.”