CrowdStrike (CRWD) has had an impressive run so far in 2025, with shares of this cybersecurity software company up roughly 33.6% year-to-date. This appreciation in value reflects strong demand for its cybersecurity solutions, healthy customer retention, and a growing appetite for its expanding product portfolio.

Despite a brief pullback following its fiscal Q1 earnings due to cautious forward guidance, the underlying fundamentals remain robust, implying further upside in CRWD stock.

 CRWD Stock: Solid ARR and Platform Stickiness Suggest Further Upside

The cybersecurity firm kicked off its fiscal year 2026 with a solid quarter, reporting strong net new annual recurring revenue (ARR) of $194 million, bringing its total ARR to $4.44 billion, up 22% year-over-year. This growth was driven by increasing momentum in its Falcon Flex platform, expanded customer contracts, expansion in key international markets, and deepening platform adoption. Nearly 48% of its customers now use six or more Falcon modules, with 32% using seven and 22% using eight or more. These figures indicate a platform that is sticky and offers significant upselling opportunities.

CrowdStrike continues to report strong customer retention with a gross retention rate of 97%, reflecting solid demand for its cybersecurity platform. Subscription revenue for Q1 reached $1.05 billion, a 20% year-over-year jump, while total revenue came in at $1.1 billion.

CrowdStrike’s partner ecosystem continues to accelerate its growth rate. In its latest quarterly report, the cybersecurity leader reported that 60% of its annual deal value in Q1 was sourced through its partner ecosystem.

Another area of strength is CrowdStrike’s Managed Security Service Provider (MSSP) business. This segment is growing quickly and accounted for more than 15% of total deal value in the first quarter. The company secured its largest deal ever in Latin America last quarter, thanks to its MSSP channel. This milestone reflects the expanding global reach of CrowdStrike’s MSSP business and points to significant growth potential in emerging markets.

Looking ahead, CrowdStrike sees continued strength in cybersecurity demand amid an AI-driven threat landscape. The company is optimistic about growth in its Falcon Flex platform and anticipates a notable pickup in net new ARR in the second quarter.

Furthermore, CrowdStrike implemented a strategic realignment initiative designed to enhance operational efficiency, focusing on high-growth areas such as cloud, identity, AI, and next-generation security information and event management (SIEM). This initiative is expected to increase its adjusted operating margin while pushing its free cash flow margin above 30%.

Thanks to its solid financials and free cash flows, CrowdStrike’s management remains bullish on its prospects and recently announced a $1 billion share repurchase authorization. Moreover, it will continue to focus on strategic mergers and acquisitions as it advances toward its target of $10 billion in ending ARR.

CrowdStrike’s Q2 and Full-Year Guidance

Looking forward, it expects fiscal Q2 revenue to range between $1.145 billion and $1.152 billion, reflecting 19% year-over-year growth. Adjusted net income is projected between $209.1 million and $213.8 million, or $0.82 to $0.84 per share. The revenue outlook disappointd the Street as analysts were estimating Q2 revenue of $1.159 billion. 

For the full fiscal year, CrowdStrike expects total revenue in the range of $4.74 billion and $4.81 billion, up 20% to 22%, with adjusted net income of up to $909.7 million, or $3.44 to $3.56 per share.

How High Can CRWD Go? Analyst Targets Suggest More Upside.

CRWD stock’s high valuation keeps Wall Street analysts cautiously optimistic about its prospects. Currently, CRWD trades at more than 130 times its projected FY26 earnings, with a midpoint estimate of $3.50 per share. Analysts maintain a “Moderate Buy” consensus rating on the stock.

Meanwhile, the highest price target is $550, suggesting potential upside of about 20% from current levels.

The Bottom Line

As AI-driven cyber threats escalate and enterprises increase spending to defend digital infrastructure, CrowdStrike stands well-positioned to capitalize on this secular growth trend. With operational execution, a focus on margin expansion, a sticky customer base, and strategic investments in innovation, CrowdStrike has more room to run in 2025 and beyond.