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. 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.
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This article is originally published at Insider Monkey.
