Evercore ISI Downgrades CrowdStrike (CRWD) to In Line, Cuts PT

On Wednesday, Evercore ISI downgraded the rating for CrowdStrike Holdings Inc. (NASDAQ:CRWD) from Outperform to In Line. The price target was also reduced from $450 to $440. The decision comes from investor discontent regarding unresolved issues within the company, despite FQ1 2026 showing substantial year-over-year improvements.

Security personnel at their consoles, monitoring a global network of threats in real-time.

In FQ1 2026, CrowdStrike reported Net New Annual Recurring Revenue/ARR of $194 million, which surpassed expectations. Ending ARR reached $4.44 billion, which was a 22% increase year-over-year. The company’s total revenue grew to $1.10 billion, which was a 20% increase, with subscription revenue contributing $1.05 billion, also up 20%. CrowdStrike provided optimistic guidance for FQ2, projecting revenue between $1.14 and $1.15 billion, which represents 19% growth.

The company also had $774 million added in total Falcon Flex account value, which marks a 31% sequential growth. The Falcon Flex model offers customers frictionless access to CrowdStrike’s cybersecurity portfolio.  However, there’s a temporary discrepancy between ARR and subscription revenue due to the Cloud Consumption Program/CCP, which is estimated to have a near-term impact of $10 to $15 million per quarter on subscription revenue.

CrowdStrike Holdings Inc. (NASDAQ:CRWD) provides cybersecurity solutions in the US and internationally. Its unified platform provides cloud-delivered protection of endpoints, cloud workloads, identity, and data through a SaaS subscription-based model.

While we acknowledge the potential of CRWD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRWD and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.