Cybersecurity firm CrowdStrike (CRWD) posted a fresh all-time high of $273.54 on Oct. 2 and is hitting new highs again today, Oct. 6. The stock started hitting these new highs after news that U.S. prosecutors closed an investigation into deals the company struck with a distributor without taking further action. Federal prosecutors and regulators have been investigating CrowdStrike's handling of the transactions and what executives knew about them since at least early 2025.
The company has been reaping gains from the growing need for cybersecurity in the artificial intelligence (AI) era. For instance, according to a new report, OpenAI, Anthropic, and other security researchers are investigating thousands of breaches during internal and real-world testing where AI models leaped over guardrails and even took part in digital hijackings.
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Against this backdrop, CrowdStrike co-founder and chief executive George Kurtz believes the AI Detection and Response (AIDR) business could grow larger than its endpoint detection and response (EDR) business as AI agents become more ubiquitous.
At its Fal.Con conference, the company highlighted the challenges of the agentic AI era and the ways it’s trying to mitigate them. Moreover, recently, it was announced that the Falcon platform is available in the OpenAI Marketplace, allowing eligible OpenAI enterprise customers to purchase CrowdStrike products.
Therefore, CRWD stock may be a buy based on prospects. However, CrowdStrike also trades at a high valuation, making it a stock to watch.
About CrowdStrike Stock
CrowdStrike is a cybersecurity company headquartered in Austin, Texas. It helps businesses and governments protect computers, cloud systems, data, and user accounts from cyberattacks. Its main product, the Falcon platform, uses cloud technology and AI to detect threats, stop attacks, and respond quickly to incidents.
CrowdStrike also provides security monitoring, threat intelligence, and tools for managing IT systems. The company earns most of its money through subscriptions to its security software and services. It has a market capitalization of $276.50 billion.
CrowdStrike’s stock is up 127% over the past 52 weeks because investors see AI as a major growth driver for cybersecurity, not a threat to the business. Strong earnings, growing customer spending, and reduced regulatory uncertainty have supported the rally. Over the past three months, the stock has gained 41%.
CrowdStrike’s stock is currently trading at a highly stretched valuation, especially compared to its peers. Its forward-adjusted price-to-earnings (non-GAAP) ratio of 214.98x is significantly higher than the industry average of 23.53x.
www.barchart.com AI-Driven Security Demand Lifted CrowdStrike’s Revenue
The second quarter of fiscal 2027 (quarter ended July 31) was the best quarter in CrowdStrike's history. The company achieved a record $333 million in net new annual recurring revenue (ARR). Management stated that the Mythos moment translated into mass-market acceptance that AI adoption needs security.
The company’s total ARR grew 25% year-over-year (YoY) to $5.84 billion as of July 31. Total revenue increased 26% to $1.47 billion. Non-GAAP EPS for the quarter was $0.31, compared to $0.23 in the prior-year period. For fiscal 2027, Wall Street analysts expect EPS to grow 900% YoY to $0.08, followed by a 175% improvement to $0.22 in the next fiscal year.
Here’s What Analysts Think About CRWD Stock
This month, TD Cowen analysts raised the price target on CrowdStrike’s stock from $250 to $280 while maintaining a bullish “Buy” rating on the stock. The firm’s analysts cited strong demand conditions that could propel the company to top its second-half 2027 net new ARR growth estimate. TD Cowen analysts also noted rapid adoption of AI traffic and consolidation on the company’s Falcon platform.
Following a string of AI-focused announcements at its annual flagship cybersecurity conference, BofA analysts maintained a “Neutral” rating but raised the price target from $230 to $260. The firm’s analysts highlighted Falcon Guardian, saying it is establishing the industry benchmark for AI-powered detection and response.
Stephens raised its CRWD stock price target to $280 from $260 while keeping an “Overweight” rating. The firm pointed to a growing AI-driven cybersecurity market, ongoing gains from industry consolidation, and CrowdStrike’s status as one of a limited group of strategic cybersecurity platform providers.
Wall Street analysts are soundly bullish on CRWD stock, with analysts awarding it a consensus “Moderate Buy” rating. Of the 50 analysts rating the stock, 33 analysts have given it a “Strong Buy” rating, and three analysts have given a “Moderate Buy” rating, while 12 analysts are playing it safe with a “Hold” rating, and two analysts suggested “Strong Sell.” The consensus price target of $242.26 represents 14% downside from current levels. However, the Street-high price target of $425 represents a 51% potential upside.
www.barchart.com On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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