Benchmark reiterated its Buy rating on CrowdStrike Holdings Inc. following the cybersecurity firm’s second-quarter fiscal 2027 results, which exceeded expectations across revenue, profitability and cash flow metrics.
The company reported annual recurring revenue (ARR) of approximately $46 million above FactSet consensus estimates, alongside a 2.1% revenue beat and a 6.8% uplift in operating income margin versus projections. Free cash flow and margin also came in 8.7% above estimates, while net new ARR rose 51% year-over-year to $333 million, marking the strongest growth since 2021.
ARR growth accelerated for the fourth consecutive quarter to 25.4%, while revenue growth reached 25.8%, the fifth straight quarter of acceleration. CrowdStrike’s platform pillars—cloud security, next-generation SIEM and identity—grew 39% year-over-year. The Falcon Flex go-to-market strategy generated over $2.29 billion, doubling from the prior year.
Benchmark maintained its $250 price target, citing the company’s record profitability and sustained demand. Piper Sandler, RBC Capital, Needham and Stifel all raised their targets, with RBC lifting its forecast to $260. The stock, trading at $220.90, remains near its 52-week high of $227.50 and has gained 79% over the past year.
InvestingPro analysis noted the stock appears overvalued relative to its Fair Value, though the firm acknowledged CrowdStrike’s outperformance in ARR as the largest beat in several years. CrowdStrike also raised its fiscal 2027 outlook, reinforcing confidence in its growth trajectory following the Mythos incident.
