Evaluating CrowdStrike Stock: Buy, Hold, or Sell Before Q2 Earnings?

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CrowdStrike Holdings, Inc. (CRWD) is set to announce its fiscal 2026 second-quarter earnings on August 27, after the market closes. The company’s previous guidance indicated disappointing revenue numbers, prompting concerns among investors. CrowdStrike reported a fiscal first-quarter revenue of $1.10 billion, marking a 20% year-over-year increase, but below the 29% growth rate for the full fiscal year 2025.

For the second quarter, CrowdStrike anticipates revenues to range between $1.14 billion and $1.15 billion, which suggests a 19% year-over-year growth but is still less than the previous quarter. Moreover, free cash flow in the last quarter declined to $279.4 million from $322.5 million year-over-year, attributed to a platform outage. The company’s forward price-to-sales (P/S) ratio stands at 21.9, significantly higher than the industry average of 13.7.

Despite some challenges, CrowdStrike’s annual recurring revenue (ARR) reached a record $4.4 billion, a 22% increase from the previous year, with expectations to reach $10 billion by fiscal year 2031. Stakeholders are advised to monitor the upcoming earnings report closely before making any investment decisions.

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