Is CRWD a good stock to buy? We came across a bullish thesis on CrowdStrike Holdings, Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on CRWD. CrowdStrike Holdings, Inc.’s share was trading at $ 423.95 as of April 17th. CRWD’s trailing and forward P/E were 401.83 and 87.72 respectively according to Yahoo Finance.
CrowdStrike Holdings, Inc. (CRWD) is positioned as a leading cybersecurity platform company, delivering durable growth alongside strong profitability through its Falcon platform. The company continues to demonstrate robust momentum, with FY2026 annual recurring revenue reaching $5.25 billion, up 24%, and quarterly net new ARR accelerating 47% to $331 million.
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Revenue grew 23% to $1.31 billion, driven predominantly by high-margin subscription revenue of $1.24 billion, while operating margins expanded to 25% and free cash flow reached $1.24 billion, reflecting a 26% margin and highlighting the scalability of its model. CrowdStrike’s platform strategy remains a key driver of sustained expansion, with approximately half of its customers adopting six or more modules and net retention at a strong 115%, underscoring deep customer engagement. Falcon Flex ARR surged 120% to $1.69 billion, reinforcing the success of its multi-product approach and creating a powerful land-and-expand dynamic.
The company’s data advantage, processing trillions of security events daily, strengthens its competitive moat against both legacy vendors and emerging AI-native competitors. Artificial intelligence is further amplifying growth, as the rapid proliferation of over 1,800 AI applications across customer environments expands the threat landscape and drives demand for advanced security solutions, with certain AI-driven offerings scaling at exceptional rates.
High-growth adjacencies such as cloud and identity security continue to expand at 35–75%, supporting a broad-based growth profile. Despite natural moderation to low-20% growth at scale, CrowdStrike’s forward outlook remains compelling, with expectations for sustained ARR growth and free cash flow margins exceeding 30%, reinforcing its position as a high-quality compounder.
Previously, we covered a bullish thesis on CrowdStrike Holdings, Inc. (CRWD) by Bulls On Parade in February 2025, which highlighted the temporary dislocation from the Blue Screen of Death incident and the resilience of its Falcon platform. CRWD’s stock price has appreciated by approximately 11.49% since our coverage. Sergey shares a similar view but emphasizes on accelerating ARR growth, platform expansion, and AI-driven demand strengthening long-term growth.
CrowdStrike Holdings, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held CRWD at the end of the fourth quarter which was 66 in the previous quarter. While we acknowledge the risk and potential of CRWD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRWD and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
