TLDR
- CrowdStrike (CRWD) stock dropped 5% on Thursday following poor Fortinet earnings that triggered a cybersecurity sector sell-off
- The stock closed at $427.90, still up 29% for 2025 but down from its 52-week high of $514.10
- Analysts expect Q2 earnings of $0.83 per share (down 20% year-over-year) and revenue of $1.15 billion (up 19%) on August 27
- Cantor Fitzgerald maintained a Buy rating with $475 price target, expecting growth recovery in H2 2025
- Wall Street consensus shows Moderate Buy rating with average price target of $496.11, implying 16.73% upside potential
CrowdStrike stock took a hit Thursday, falling over 5% to close at $427.90. The decline wasn’t due to company-specific news but rather fallout from Fortinet’s disappointing quarterly results.
Fortinet reported weak Q2 earnings and warned of slower firewall demand. This sparked concerns about the broader cybersecurity sector’s near-term growth prospects.
The sell-off wasn’t isolated to CrowdStrike. Palo Alto Networks dropped 2.77%, while Zscaler fell 5.81% and SentinelOne declined 3.70%.
Industry watchers viewed the decline as sector sentiment rather than fundamental weakness at individual companies. CrowdStrike’s business metrics remain solid despite the stock price movement.
The company trades at $427.90, representing a 29% gain for 2025. However, shares remain well below the 52-week high of $514.10 reached earlier this year.
CrowdStrike continues expanding its cloud-native Falcon platform across endpoints, identities, and workloads. Customer retention rates stay strong with healthy cross-selling momentum.
Analyst Outlook Remains Positive
Cantor Fitzgerald analyst Jonathan Ruykhaver maintained his Buy rating on CrowdStrike following the decline. He kept his price target at $475, citing growth recovery expectations for the second half of 2025.
Ruykhaver projects net new annual recurring revenue to rise 8% year-over-year to $870 million in fiscal 2026. This growth should come from improved pricing and easier year-over-year comparisons.
New partner incentive programs could also boost performance in coming quarters. However, the analyst noted potential risks around slower product adoption and partner scaling delays.
CrowdStrike’s premium valuation means execution must remain strong to justify current price levels. The company trades at elevated multiples compared to sector peers.
Earnings Expectations and Forward Metrics
CrowdStrike reports Q2 fiscal 2026 earnings after market close on August 27. Analysts expect earnings of $0.83 per share, down 20% from the prior year quarter.
Revenue forecasts call for $1.15 billion, representing 19% growth year-over-year. Full-year estimates project earnings of $3.50 per share on revenue of $4.78 billion.
The company’s Forward P/E ratio sits at 126.09, well above the industry average of 62.67. The PEG ratio reaches 5.56 versus the security sector average of 2.89.
These metrics reflect high growth expectations built into the current stock price. Meeting or beating earnings guidance will be crucial for maintaining investor confidence.
Wall Street maintains largely positive sentiment on CrowdStrike despite recent weakness. The stock carries 33 Buy ratings, four Holds, and one Sell recommendation for a Moderate Buy consensus.
The average analyst price target of $496.11 suggests 16.73% upside potential from current levels. This implies confidence in the company’s long-term cybersecurity positioning despite near-term sector headwinds.
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