Needham Remains Bullish on CrowdStrike (CRWD) Following Q1 Report, Raises Price Target to $530

On June 4, Needham analyst Mike Cikos maintained a bullish stance on CrowdStrike Holdings, Inc. (NASDAQ:CRWD), assigning a Buy rating and increasing its price target from $420 to $530.

The analyst’s optimistic rating was based on the company’s strong fiscal Q1 2026 results, announced on June 3, which exceeded expectations in terms of Net-New Annual Recurring Revenue (ARR) and bottom-line results. Its ending ARR surpassed $4.4 billion, adding $194 million in net new ARR.

A cybersecurity expert monitoring the security of the company’s assets, emphasizing the importance of data protection.

According to Cikos, these results provided management with increased confidence in expediting growth in H2 2026. He also reasoned that the qualitative insights indicate that Q2 2026 is expected to have a growth rate more than double that of the same period last year, exceeding consensus estimates.

The analyst backed his optimistic outlook with the success of CrowdStrike Holdings, Inc.’s (NASDAQ:CRWD) Flex initiative, with usage surpassing contracted spending. In addition, the Next-Gen Security Information and Event Management (SIEM) solutions experiencing continually solid year-over-year growth were also key factors supporting the analyst’s rating.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) offers cybersecurity services and products to prevent breaches. Its offerings include cloud-delivered protection across endpoints, threat hunting, managed security services, IT operations management, log management, and more.

While we acknowledge the potential of CRWD as an investment, 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.