CrowdStrike Holdings delivered fiscal 2027 guidance on a key financial metric above consensus estimates as the company continues to rebound from a global IT outage last year. CrowdStrike stock rose solidly on Thursday, signaling a possible early entry.
The cybersecurity firm hosted an investor day on Wednesday in Las Vegas that coincided with its Fal.con customer conference. Wall Street analysts have been focused on annual recurring revenue, or ARR. It's a key financial metric tied to subscription services growth.
Key Financial Metric: ARR
CrowdStrike reiterated that net new ARR growth will reaccelerate to 40% or more in the second half of fiscal 2026. It predicted 20% or better in fiscal 2027, which starts with the April quarter in 2026.
"CrowdStrike guided fiscal 2027 new ARR to grow 20%-plus year-over-year in fiscal 2027 versus the 17% currently guided to in fiscal 2026," said Jefferies analyst Joseph Gallo in a report. "This implies 22% total ARR growth in fiscal 2027 which is two points above consensus. We ultimately believe a point of upside remains feasible to fiscal 2026 guidance and positive checks and AI prudence could drive upside in fiscal 2027. This guidance was better than expected and also alleviates concerns for high-teens growth in fiscal 2028."
In addition, CrowdStrike reiterated a goal of $10 billion in subscription-based ARR by fiscal 2031.
"Besides reiterating investors' existing expectations of 40%-plus net new ARR reacceleration in the second half of fiscal 2026 given strong uplift momentum for Falcon Flex, record Q3 pipeline and strong retention, management offered first positive peeks into next fiscal year," said TD Cowen analyst Shaul Eyal in a report.
CrowdStrike competes with Palo Alto Networks, SentinelOne, Microsoft and others in the "endpoint" market. Endpoint security tools detect malware on laptops, mobile phones and other devices that access corporate networks.
The company is building a broad, threat-detection cybersecurity platform that monitors endpoints as well as web/email gateways, web application firewalls and cloud business workloads.
CrowdStrike Stock Jumps
On the stock market today, CrowdStrike stock popped 12.8% to close at 502.63. CrowdStrike stock has gained 44% in 2025 but fell significantly from the July 3 peak of 517.98.
"While there are still some lingering questions on contra-revenue from sales incentive programs and as a result how ARR growth translates into revenue growth, we were encouraged by the targets and extensive potential total addressable market as CrowdStrike continues to expand out their platform," said Morgan Stanley analyst Meta Marshall in a report.
CRWD stock rebounded from the 200-day line in early September. On Wednesday, shares closed above the 50-day line for the first time since July 21.
A strong bounce Thursday could offer an early entry in a consolidation. The traditional buy point is the 517.98 all-time peak.
CrowdStrike Stock Technical Ratings
CrowdStrike has been pushing into the identity security market, where is competes with CyberArk, Okta and others. Some analysts are looking for a management update on market traction in identity security. Palo Alto Networks has agreed to buy CyberArk.
CrowdStrike in July acquired Onum Security, a provider of real-time telemetry management. On Tuesday, CrowdStrike announced the acquisition of AI security firm Pangea Cyber for $260 million.
Also, CrowdStrike stock holds a Composite Rating of 83 out of a best-possible 99, according to IBD Stock Checkup.
Meanwhile, CrowdStrike stock holds an Accumulation/Distribution Rating of D-minus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. (A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.)
Further, the Computer Software-Security group ranks No. 121 out of 197 industry groups that IBD tracks.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
