Should You Trim Or Add To Your CrowdStrike Position Now? Trefis Team Tue, October 13, 2026 at 2:57 PM EDT 4 min read CRWD -0.68% ^GSPC -0.02% PANW -1.68% MSFT +0.43% FTNT -1.13% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Investors holding CrowdStrike (CRWD) are likely weighing whether to take some money off the table. The stock returned 107% over the past twelve months, easily outpacing the 17.3% gain for the S&P 500. Yet management noted in August that customers are spending more on security as they adopt AI, providing shareholders a reason to maintain their positions. So what are you paying for CrowdStrike today, and what do you get for it?
CrowdStrike Is Valued At About 50 Times Revenue
The stock currently trades at 49.7 times the company's sales over the past twelve months, compared with 3.1 times for the S&P 500. That premium pricing buys access to a rapidly expanding operation.
Revenue reached $1.47 billion in fiscal Q2 2027, marking a 26% increase from a year earlier. During the August 26, 2026 call, management noted that revenue growth had sped up for a fifth straight quarter. Over a three-year period, CrowdStrike's revenue has grown 26.9% a year on average, while the S&P 500 averaged 5.9%.
Investors are not getting a GAAP operating profit yet. CrowdStrike reported a GAAP operating loss of about 2.5% of revenue over the twelve months ended July 31, 2026, while the S&P 500 earned an operating margin of 18.5%. On its own adjusted basis, management reported record operating income of $372 million for fiscal Q2, an operating margin of 25%, up 3.5 percentage points from a year earlier.
Will CrowdStrike's AI Security Demand Last?
Management says it will. On the fiscal Q2 2027 call, executives stated they believe the demand will last, pointing to their raised outlook as one reason. At the midpoint of its outlook, CrowdStrike now expects new annual recurring revenue, the yearly value of subscriptions added from new and existing customers, to grow 34% in fiscal 2027.
The company argues that AI gives attackers more targets: more models, more agents and more identities for a business to protect. CrowdStrike sells this defense through its Falcon platform. When customers switch from a standard subscription to Falcon Flex, management said the annual recurring revenue CrowdStrike gets from them ends up more than 40% higher on average.
Still, CrowdStrike is guiding to a slower rate of growth in fiscal Q3. The company added $333 million of annual recurring revenue in fiscal Q2, a figure 51% more than a year earlier. For fiscal Q3 it expects to add $343 million to $347 million. That range is larger in dollars but represents an increase of only 29% to 31% above a year earlier. Investors do not yet know whether fiscal Q2 was a one-time surge or the new pace.
CrowdStrike Holders Have Sat Through A 42% Drop
CrowdStrike stock fell 42% in July and August 2024, a period when the S&P 500 lost 7.8%. During the 2025 tariff shock it fell 31%, compared with 19% for the index. It also dropped 31% in the inflation shock of 2022, while the index fell 24%. The exception occurred in the yield shock of late 2023, when CrowdStrike lost 4.6% and the S&P 500 lost 9.5%.
A position that has doubled in value is probably a bigger share of a portfolio than it was a year ago, so falls like these would carry a heavier cost.
The next indicator to watch is CrowdStrike's fiscal Q3 2027 report. Investors will need to measure the annual recurring revenue the company adds in that quarter against its own guide. A figure above the guide would suggest fiscal Q2 was the new pace, while a result inside or below that range would suggest fiscal Q2 was a one-time surge.
Does This Mean You Should Act On CRWD?
Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.
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