CrowdStrike (CRWD, Financial) has formed a strategic alliance with technology services company Wipro Ltd. (WIT) to enhance cybersecurity measures through the integration of advanced technologies. This collaboration aims to enrich Wipro's CyberShield platform by incorporating CrowdStrike's Falcon Next-Gen SIEM (Security Information and Event Management) technology.
The partnership is set to modernize security operations by simplifying processes and leveraging AI-driven threat detection and response capabilities to prevent breaches effectively. By embedding CrowdStrike's proprietary data directly into the Falcon platform, Wipro can offer clients accelerated value realization, reduced total cost of ownership (TCO), and significantly improved cybersecurity outcomes.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 45 analysts, the average target price for CrowdStrike Holdings Inc (CRWD, Financial) is $402.45 with a high estimate of $475.00 and a low estimate of $185.00. The average target implies an upside of 4.33% from the current price of $385.75. More detailed estimate data can be found on the CrowdStrike Holdings Inc (CRWD) Forecast page.
Based on the consensus recommendation from 52 brokerage firms, CrowdStrike Holdings Inc's (CRWD, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CrowdStrike Holdings Inc (CRWD, Financial) in one year is $439.36, suggesting a upside of 13.9% from the current price of $385.75. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CrowdStrike Holdings Inc (CRWD) Summary page.
CRWD Key Business Developments
Release Date: March 04, 2025
- Net New ARR (Annual Recurring Revenue): $224 million in Q4, ending FY 2025 at $4.24 billion.
- Cloud Security, Identity Protection, and Next-Gen SIEM ARR: Over $1.3 billion, growing nearly 15% year over year.
- Gross Dollar Retention: 97%.
- Free Cash Flow: $240 million in Q4; $1.07 billion for the full year, or 27% of revenue.
- Total Contract Value: $6 billion, increased 40% year over year.
- Revenue: $1.06 billion in Q4, with subscription revenue over $1 billion.
- Operating Income: $837.7 million for FY 2025, or 21% of revenue.
- Net Income: Non-GAAP net income of $261.0 million in Q4, or $1.03 per diluted share.
- Cash and Cash Equivalents: $4.32 billion.
- Subscription Gross Margin: Over 80% of revenue.
- Operating Margin: 21% in Q4.
- Customer Growth: Trusted by more than 74,000 organizations, growing more than 30% year-over-year.
- Guidance for FY 2026 Revenue: $4,743.5 million to $4,805.5 million, reflecting a growth rate of 20% to 22%.
- Guidance for FY 2026 Non-GAAP Net Income: $851.2 million to $883.0 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CrowdStrike Holdings Inc (CRWD, Financial) reported a Q4 net new ARR of $224 million, surpassing expectations and closing FY 2025 with $4.24 billion in ending ARR.
- The company achieved a record free cash flow of $1.07 billion for the fiscal year, representing 27% of revenue.
- CrowdStrike Holdings Inc (CRWD) became the first cybersecurity ISV to cross $1 billion in deal value on AWS Marketplace in a single calendar year.
- The Falcon Flex subscription model has been a significant success, with accounts adopting Falcon Flex reaching $2.5 billion in total deal value, growing 80% quarter over quarter.
- The company's cloud security business grew over 45% in Q4, with ending ARR surpassing $600 million, highlighting strong demand for its cloud security solutions.
Negative Points
- Despite strong performance, the net new ARR was down about 1% year over year, indicating some challenges in maintaining growth momentum.
- The company faced a GAAP net loss of $92.3 million in Q4, impacted by tax expenses related to acquisitions and incident-related expenses.
- There is a noted decline in growth from existing customers, with upselling to existing customers decreasing from 21% growth in Q1 to 15% by year-end.
- The company anticipates cash impacts of approximately $73 million for outage-related costs in Q1 of FY26, affecting short-term financial performance.
- Operating margin guidance for FY26 reflects upfront investments and amortized costs from the Customer Commitment Program, which may pressure margins in the near term.
