CrowdStrike (CRWD) is still digging out from last year’s global IT outage, triggered by a faulty update to its Falcon platform.
The hangover has put the lid on near-term revenue guidance and forced analysts to trim price targets. But despite the drag, Wall Street remains largely bullish on the cybersecurity giant.
In its fiscal 2026 Q2 earnings report, CrowdStrike topped expectations. Adjusted EPS came in at $0.93 per share, beating the $0.83 consensus. Revenue hit $1.17 billion, edging past forecasts of $1.15 billion.
But guidance for Q3 came in softer. Tthe company projected $1.21 billion to $1.22 billion in revenue, compared to Wall Street’s $1.23 billion estimate.
CRWD stock have still gained 23.8% year-to-date, although the stock has struggled to find momentum after the outage.
⚠️ The CCP overhang
Much of the dip in revenue forecasts stems from CrowdStrike’s Customer Choice Program (CCP), created to retain clients after the 2024 outage.
As part of compensation, some customers received licenses at no cost, which has dragged on revenue forecasts even as the company tries to transition those clients into paying subscribers.
CEO George Kurtz told analysts he’s confident the CCP users will stick.
“When you look at the value that we provide in these modules and once customers see it integrated into the platform and into their workflows, 95%-plus they’re going to renew it,” he said.
📉 Analyst reactions
Analysts have taken a cautious-but-bullish stance.
- DA Davidson’s Rudy Kessinger trimmed his price target to $490 from $530 but kept a Buy rating, noting that CCP headwinds should fade by FY27.
- Piper Sandler’s Rob Owens maintained a Neutral rating, cutting his target to $450 from $505, but pointed to positive growth in new annual recurring revenue (NARR) as a bright spot.
🚀 Dan Ives stays bullish
Wedbush analyst Dan Ives — one of the Street’s most influential tech voices — recently added CrowdStrike to his “IVES AI Revolution 30” list of companies set to define the future of AI. He also maintained an Outperform rating, though he lowered his price target from $575 to $525.
Despite the cut, Ives called CrowdStrike “the gold standard in the cybersecurity space,” arguing that the Street is still underestimating its role as a second- and third-order AI beneficiary.
CrowdStrike also continues to expand its product ecosystem.
Last week, the company acquired Onum, a pioneer in real-time telemetry pipeline management. The move is designed to enhance Falcon Next-Gen SIEM, boosting its data foundation for security and IT operations while adding autonomous detection features.
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