CrowdStrike (NASDAQ: CRWD) is more competitively entrenched than ever in endpoint security while gaining traction in cloud protection and next-generation Security Information and Event Management (SIEM), according to recent customer feedback and discussions at Fal.Con 2025.
This expanding market dominance and an aggressive contract strategy have led analysts to project sustained, strong recurring revenue growth well into fiscal year 2027 and beyond.
Scotiabank analyst Patrick Colville upgraded CrowdStrike from Sector Perform to Sector Outperform and raised the price forecast from $440 to $600. CrowdStrike’s scale and profitability make it a rare asset in software, the analyst asserted.
Also Read: CrowdStrike Launches New AI Tools To Strengthen Cybersecurity, Expand Threat Detection
Colville upgraded CrowdStrike rating after extensive customer checks and in-person meetings with management at Fal.Con 2025.
The analyst argued that CrowdStrike has become more deeply entrenched in endpoint security, positioning itself to capture a large portion of the more than 50% market share not yet controlled by the top three vendors.
He emphasized that large enterprises increasingly want to consolidate their cybersecurity stacks, and CrowdStrike’s 31-module platform, delivered through a single agent and console, stands out as an attractive solution.
Colville highlighted that CrowdStrike responded effectively after the 2024 Falcon outage, retaining customers and aggressively discounting contracts to ensure long-term adoption.
In his view, these discounted modules are not “shelfware,” as customers reported quick time to value and little interest in switching at renewal. As contracts roll forward into fiscal 2027 and 2028, the analyst expects these commitments to provide a significant boost to annual recurring revenue (ARR).
Colville also pointed to strong customer momentum in newer areas such as vulnerability management, cloud security, and next-generation SIEM, which are beginning to displace incumbents.
The analyst noted fiscal 2027 as a major inflection point. Management has guided to more than 20% new ARR growth, slightly ahead of Street expectations, but he believes CrowdStrike could reach an “upside case” of 25–30% ARR growth.
At that pace, the company would rank among the fastest-growing software firms at scale, alongside Palantir (NASDAQ: PLTR), Snowflake (NYSE: SNOW), and Shopify (NASDAQ: SHOP), as per Colville.
The analyst views the disclosure on contra revenue, which should trim reported growth by less than 1%, as removing a key overhang.
He also noted management’s reaffirmed medium-term operating and free cash flow margin targets as evidence of durable profitability, even as incentive costs tied to the outage roll off.
Product announcements at Fal.Con reinforced Colville’s optimism. CrowdStrike’s push into AI for security, its Onum acquisition for telemetry pipelines, and new tools for securing agentic AI use could add growth catalysts over the medium term, as per the analyst.
He argued that as enterprises adopt more autonomous AI agents, they will need specialized security tools, giving CrowdStrike a right to win in this emerging space.
Colville projected third-quarter revenue of $1.21 billion and adjusted EPS of 95 cents.
Price Action: CRWD stock was trading higher by 0.13% to $476.96 at last check Thursday.
Read Next:
Photo by Bluestork via Shutterstock
