CrowdStrike (CRWD)

Information Technology · $230B market cap · SEC CIK 0001535527

Next reports on Dec 1, 2026, with analysts expecting $0.32 in earnings per share.

52-week range $85.68 to $286.99. 21% below its 52-week high and 163% above its low.

The case for CRWD

• Revenue up 24.3% on the year.
• Generated $1.3B of free cash flow in FY2026, 27% of revenue.
• Holds more cash ($5.2B) than long-term debt ($745M).
• Has compounded revenue at 40.6% a year over five years.
• Barely leveraged. Debt is 0.15× equity.
• Gross margin of 75% absorbs cost shocks.

The case against

• Expensive for its growth: 3930.3× earnings, where 25%+ a year of growth would justify about 46×.
• Priced at 42.6× sales, which leaves no room for a stumble.
• Return on equity of only 1%.
• Priced at 38× book value. Very little hard asset backing here.
• Growth is slowing: revenue up 24.3% this year against 40.6% a year over five.
• Net margin of 1.1% leaves very little room for error.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from CrowdStrike's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What CrowdStrike says it does

Overview Founded in 2011, CrowdStrike reinvented cybersecurity for the cloud and artificial intelligence (“AI”) era and transformed the way cybersecurity is delivered and experienced by customers. When we started CrowdStrike, cyberattackers had an asymmetric advantage over legacy cybersecurity products that could not keep pace with rapid changes in adversary tactics, a dynamic that has intensified as adversaries increasingly leverage automation, identity abuse, and AI to operate at machine speed. We took a fundamentally different approach to solve this problem with the AI-native CrowdStrike Falcon cybersecurity platform, which serves as the operating system for cybersecurity. CrowdStrike built the first, true, cloud-native platform with AI at the core, capable of harnessing vast amounts of security and enterprise data to drive real-time security decisions and response – stopping breaches at scale through a single lightweight sensor.…

Risk factors CRWD lists in its 10-K

• The July 19 Incident has had, and is expected to continue to have, an adverse effect on our business, sales, customer and partner relations, reputation, results of operations and financial condition
• We have experienced rapid growth in recent periods, and if we do not manage our future growth, our business and results of operations will be adversely affected
• We have a history of losses, and while we have achieved profitability in certain periods, we may not be able to achieve or sustain profitability in the future
• If organizations do not adopt cloud-based SaaS-delivered endpoint security solutions, our ability to grow our business and results of operations may be adversely affected
• If our customers do not renew their subscriptions for our products and add additional cloud modules to their subscriptions, our future results of operations could be harmed
• Our sales cycles can be long and unpredictable, and our sales efforts require considerable time and expense
• We face intense competition and could lose market share to our competitors, which could adversely affect our business, financial condition, and results of operations
• Competitive pricing pressure may reduce our gross profits and adversely affect our financial results
• We rely on our key technical, sales and management personnel to grow our business, and the loss of one or more key employees could harm our business
• If we are unable to attract and retain qualified personnel, our business could be harmed
• If we do not effectively expand and train our direct sales force, we may be unable to add new customers or increase sales to our existing customers, and our business will be adversely affected
• Because we recognize revenue from subscriptions to our platform over the term of the subscription, downturns or upturns in new business will not be immediately reflected in our results of operations
• Our results of operations may fluctuate significantly, which could make our future results difficult to predict and could cause our results of operations to fall below expectations
• If we are not able to maintain and enhance our CrowdStrike and Falcon brands and our reputation as a provider of high-efficacy security solutions, our business and results of operations may be adversely affected
• Our international operations and plans for future international expansion expose us to significant risks, and failure to manage those risks could adversely impact our business
• We may not timely and cost-effectively scale and adapt our existing technology to meet our customers’ performance and other requirements
• Our ability to maintain customer satisfaction depends in part on the quality of our customer support
• If we cannot maintain our company culture as we grow, we could lose the innovation, teamwork, passion, and focus on execution that we believe contribute to our success and our business may be harmed
• We are exposed to the credit risks of certain of our customers and end-users, which could adversely impact our business, financial condition or results of operations
• The success of our business depends in part on our ability to protect and enforce our intellectual property rights
• Claims by others that we infringe their proprietary technology or other intellectual property rights could result in significant costs and substantially harm our business, financial condition, results of operations, and prospects
• We license technology from third parties, and our inability to maintain those licenses could harm our business
• We are subject to governmental export controls and economic sanctions laws that could impair our ability to compete in international markets and subject us to liability if we are not in full compliance with applicable laws
• We are subject to anti-corruption, anti-bribery and similar laws, and non-compliance with such laws can subject us to criminal penalties or significant fines and harm our business and reputation
• Some of our technology incorporates “open source” software, which could negatively affect our ability to sell our Falcon platform and subject us to possible litigation
• We utilize AI, which could expose us to liability or adversely affect our business
• We provide service level commitments under some of our customer contracts. If we fail to meet these contractual commitments, we could be obligated to provide credits for future service and our business could suffer
• We are currently, and may in the future become, involved in litigation that may adversely affect us
• The market price of our common stock may be volatile regardless of our operating performance, and you could lose all or part of your investment
• Our share repurchase program may not result in benefits to stockholder value
• If industry or financial analysts do not publish research or reports about our business, or if they issue inaccurate or unfavorable research regarding our common stock, our stock price and trading volume could decline
• We do not intend to pay dividends in the foreseeable future. As a result, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock
• Our indebtedness could adversely affect our financial condition
• We may not be able to generate sufficient cash to service all of our indebtedness, including the Senior Notes, and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
• The indenture that governs our Senior Notes contains, and future credit agreements may contain, terms which restrict our current and future operations, particularly our ability to respond to changes or to take certain actions
• If we fail to maintain an effective system of internal controls, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired
• Our corporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which would harm our results of operations
• Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited
• If our estimates or judgments relating to our critical accounting policies prove to be incorrect or financial reporting standards or interpretations change, our results of operations could be adversely affected
• We are subject to risks associated with our equity investments, including partial or complete loss of invested capital, and significant changes in the fair value of this portfolio could adversely impact our financial results
• Expectations regarding our efforts and performance relating to corporate responsibility factors have imposed and may impose additional costs on us and expose us to risks

Filings

Other Information Technology companies