CrowdStrike (CRWD) Makes New High With Earnings on Deck

CrowdStrike's stock price (NASDAQ: CRWD) is riding high, hitting new all-time-highs, even as earnings loom after the market close. This new peak ($488.15) arrives just as the cybersecurity leader prepares to release its first-quarter fiscal 2026 earnings report, adding a layer of anticipation and scrutiny to the already bullish sentiment surrounding the stock.

Markets are also expecting strong growth numbers from CrowdStrike, with revenue of $1.11billion a 20% increase on the same quarter last year. Expectations for EPS of $0.66 however represent a drop on the $0.93 achieved YoY. That being the case, CRWD has beaten EPS estimates in each of the past four quarters including the comparable period, indicating that there could be an expectation for more of the same leading into this afternoon's report.

Furthermore, CrowdStrike has been actively expanding its capabilities through strategic partnerships and product enhancements. Collaborations with AWS and NVIDIA to bolster the Cybersecurity Startup Accelerator program demonstrate a commitment to fostering innovation in AI and cloud security. The launch of AI Security Posture Management and Data Security Posture Management within its Falcon Cloud Security platform enhances visibility and protection across cloud infrastructures and AI models, positioning CrowdStrike to capitalize on the growing demand for comprehensive cloud security solutions.

However, the path to continued success isn't without its potential potholes. CrowdStrike's recent history includes a significant challenge: the global IT outage in July 2024 stemming from a flawed software update. This incident, which impacted an estimated 8.5 million Microsoft Windows systems worldwide and disrupted sectors from airlines to healthcare, not only caused substantial financial damage, estimated at least $10 billion, but also tarnished the company's reputation.

Delta Air Lines subsequently filed a lawsuit against CrowdStrike, seeking to recover damages exceeding $500 million due to approximately 7,000 flight cancellations caused by the outage. While CrowdStrike has denied the claims and filed a countersuit, the ongoing legal battle introduces an element of uncertainty and could potentially impact future financial performance and customer trust.

Despite this momentary setback, analysts largely remain bullish. These positive assessments are based, in part, on CrowdStrike's strong financial performance in previous quarters.

A couple of firms have even front run earnings, making upgrades to their price targets on CRWD ahead of the quarterly earnings release as you can see above. Analysts have a lower end target price of $321 and a high target price of $550, which is quite a wide range. The average target price stands at $427.75 which is much lower than the analyst price targets reported above.

The upcoming earnings report will provide crucial insights into the company's current performance and its outlook for the future. Markets will be closely watching key metrics such as revenue growth, EPS, ARR, and customer acquisition to determine whether CrowdStrike can justify its premium valuation and continue to deliver strong returns. Look for outlook and guidance to prove the key to the next leg.