CrowdStrike Holdings, Inc. (CRWD)

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AI: Overvalued

Price checkStrong growth is already priced so aggressively that the shares look overvalued.

At the August 14 close of $216.95, roughly 1.03 billion split-adjusted diluted shares imply a market value near $224 billion. After subtracting $3.81 billion of net cash, the operating business costs about $220 billion, or 37 times management’s $5.91-$5.96 billion fiscal 2027 revenue forecast. It is also about 146 times trailing free cash flow, estimated at $1.51 billion as cash left after operations and capital spending. Those demands support an overvalued verdict because normal slowing would leave little protection.

Big pictureSubscriptions make cash generation durable, but reported profits still lag the growth story.

Fiscal 2026 revenue rose 22% to $4.81 billion, while gross profit reached $3.59 billion. Yet the operating loss widened to $293 million from $116 million, and the net loss was $163 million. Cash durability is better: operating cash flow was $1.61 billion, and a simple free-cash estimate was $1.31 billion. In the latest quarter, revenue growth accelerated to 26% and the operating loss narrowed sharply. Subscriptions produced 95% of quarterly revenue, though customer budget cycles make new sales strongest late in the fiscal year.

Business strengthA deep cash cushion protects the business, while employee share awards dilute owners.

At April 30, cash was $4.55 billion against $746 million of debt, leaving $3.81 billion net cash and ample room for product investment or incident costs. The trade-off is dilution: fiscal 2026 employee share compensation was $1.10 billion, equal to 23% of revenue and 84% of the simple free-cash estimate. First-quarter buybacks of $176 million were below $298 million of employee share compensation, while diluted shares rose about 4% year over year on a split-adjusted basis. The stock split itself did not dilute ownership.

What could change the storyRapid platform adoption could justify more of the price, but slower renewals would expose its thin safety margin.

The bull case is continued growth above 20%: first-quarter annual recurring revenue, meaning subscription revenue expected over a year, rose 24% to $5.51 billion, and customers using at least six modules reached 51%. Stronger evidence would be revenue growth staying near 25%, free-cash margins above 30%, and share growth below 1%. The bear case is that discounts and longer contracts offered after the July 2024 outage keep reducing upsells or delaying purchases. Growth below 20% would make today’s roughly 37-times forward-revenue price especially difficult to defend.

$216.95 price considered

AI: News

Strong quarter, higher barFirst-quarter growth accelerated, yet the shares fell because already-high expectations demanded even more.

On June 3, fiscal first-quarter revenue rose 26% to $1.39 billion, annual recurring revenue reached $5.51 billion, and company-defined free cash flow rose to $468.5 million from $279.4 million. Management increased its full-year recurring-revenue growth outlook to 27.7% at the midpoint. Reuters reported shares slid about 7% on June 4; analysts cited forecasts that did not clear unusually high expectations and possible profit-taking, so the reaction should not be attributed to one factor alone.

Four-for-one stock splitThe stock split lowered each share’s price without changing CrowdStrike’s underlying business value.

Announced June 3 and effective July 2, the four-for-one split gave holders three additional shares for each share owned. Split-adjusted trading began around one-quarter of the former price; the change increased the share count and reduced the price proportionally, leaving each owner’s percentage and the company’s total value unchanged. It may improve retail access or trading liquidity, but those effects are uncertain. The split should therefore be treated as a market-structure event, not evidence of stronger earnings.

European platform expansionA European partnership adds useful technology and distribution, but brings no acquired revenue.

On July 16, CrowdStrike agreed to buy more than 45 XM Cyber patents and proprietary source code while expanding Falcon through Schwarz Digits’ European sovereign cloud. The agreement excludes XM Cyber’s customers and revenue, financial terms were not disclosed, and closing is expected in CrowdStrike’s fiscal 2027 second half. The potential value comes from adding exposure-management technology and opening a locally hosted route to European customers; without acquired revenue or disclosed consideration, the near-term earnings effect and any stock-price attribution remain uncertain.

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018
Revenue	$4.81B	$3.95B	$3.06B	$2.24B	$1.45B	$874.4M	$481.4M	$249.8M	$118.8M
Gross profit	$3.59B	$2.96B	$2.30B	$1.64B	$1.07B	$644.9M	$339.8M	$162.6M	$64.3M
Research & development	$1.38B	$1.08B	$780.3M	$608.4M	$371.3M	$214.7M	$130.2M	$84.6M	$58.9M
Operating expenses	$3.89B	$3.08B	$2.32B	$1.83B	$1.21B	$737.4M	$485.9M	$299.4M	$195.7M
Operating income	−$293.3M	−$116.4M	−$19.1M	−$190.1M	−$142.5M	−$92.5M	−$146.1M	−$136.9M	−$131.4M
Net income	−$162.5M	−$15.2M	$72.2M	−$183.2M	−$234.8M	−$92.6M	−$141.8M	−$140.1M	−$135.5M
Basic EPSper diluted share	-$0.65	-$0.06	$0.30	-$0.79	-$1.03	-$0.43	-$0.96	-$3.12	-$3.38
Diluted EPSper diluted share	-$0.65	-$0.06	$0.30	-$0.79	-$1.03	-$0.43	-$0.96	-$3.12	-$3.38

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)1647$620.77M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 26, 2026Form 4 · 10b5-1	Kurtz GeorgePRESIDENT AND CEO	SellClass A common stock	13	$703.56	$9.1K	2.08M
Jun 26, 2026Form 4 · 10b5-1	Kurtz GeorgePRESIDENT AND CEO	SellClass A common stock	39	$702.65	$27.4K	2.08M
Jun 26, 2026Form 4 · 10b5-1	Kurtz GeorgePRESIDENT AND CEO	SellClass A common stock	264	$701.50	$185.2K	2.08M
Jun 26, 2026Form 4 · 10b5-1	Kurtz GeorgePRESIDENT AND CEO	SellClass A common stock	91	$700.48	$63.7K	2.08M
Jun 26, 2026Form 4 · 10b5-1	Kurtz GeorgePRESIDENT AND CEO	SellClass A common stock	26	$698.43	$18.2K	2.08M

Review ownership filings at SEC.gov ↗

CrowdStrike Holdings, Inc. (CRWD)

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Insider buys & sells