CrowdStrike’s Investor Day Sparks Bullish Momentum

Key Points

• CrowdStrike projects at least 20% net new ARR growth by 2027, and projects to reach $10 billion in ending ARR by fiscal year 2031.
• The Falcon platform’s AI-native, modular approach gives the company a competitive edge in cybersecurity.
• Analysts lifted price targets after Investor Day, with bullish calls as high as $550.

CrowdStrike Holdings Inc. NASDAQ: CRWD delivered a bold new projection for net new annual recurring revenue (ARR) of at least 20% by 2027, and CRWD stock surged higher in response. The announcement was made at Fal.Con, which is the company’s Investor Day presentation.

The announcement was a marked contrast to the cautious guidance CrowdStrike delivered in its August earnings report. The forecast for a 20% net new growth in ARR surpasses its 17% pace this year, which is CrowdStrike’s fiscal year 2026.

That said, CrowdStrike’s announcement also came on the day when the Federal Reserve announced a 25-basis-point cut in interest rates that lifted the entire market. CRWD stock found resistance after hitting a high of around $500.

Cybersecurity Demand Meets AI Growth

ARR is an important metric for many software companies, and that’s particularly true with cybersecurity firms. While many investors in the tech sector focus on chip makers, with good reason, CrowdStrike is delivering on the application side of artificial intelligence (AI).

Growing demand for AI applications makes cybersecurity a must-have for enterprises. Adding to the threat's complexity, companies have to navigate an increasingly hybrid workforce. That means defending against threats both inside and outside the company’s walls.

CrowdStrike’s Falcon platform is an AI-native platform that was one of the first companies to offer a platformization strategy. Customers can select the services they wish to use in an a la carte fashion and add or remove modules as time goes on. The company also has Charlotte AI to assist in the rapid expansion of agentic AI.

Why Investors Can Trust CrowdStrike’s ARR Targets

CrowdStrike’s ending ARR in its FY26 second quarter came in at $4.7 billion. That puts it on pace to hit about $5 billion this year. In addition to the 20% growth it projects by 2027, the company projects to reach $10 billion in ending ARR by fiscal year 2031 and $20 billion by 2036.

Part of the company’s strategy to achieve these gains is through strategic acquisitions. Prior to the Fal.Con event, CrowdStrike announced its intention to buy Pangea an AI security platform as well as a partnership with Salesforce.

Analysts already believe that its modular Falcon platform makes CrowdStrike the most advanced security platform in the industry. Continuing to develop new AI-based solutions will only increase the gap from the competition.

CRWD Stock Shows Signs of a Bullish Reversal

CRWD stock was up nearly 8% before it increased its guidance outlook. The bullish price action accelerated, sending the stock over $500 per share for the first time since July.

The stock has given back about 3.5% of those gains in the five trading days ending Sept. 23. But there are reasons to be optimistic. The MACD line shows signs of a bullish reversal, and the relative strength indicator (RSI) has pulled back from its overbought reading.

Plus, the current stock price may not reflect recent bullish sentiment from analysts.

Since the ARR guidance was raised, nearly two dozen analysts have raised their price targets for CRWD stock.

Truist and JMP Securities have the most bullish price target at $550.

It may be too early to say a bullish reversal is in place.

After spiking higher the day after CrowdStrike’s announcement, volume has returned to average and even slightly below-average levels.

Plus, even with the pullback, the stock trades slightly above its consensus price target of around $480.