Jefferies increased its price target for CrowdStrike Holdings Inc. to $240 from $230 while maintaining a buy rating, citing the cybersecurity firm’s upwardly revised annual recurring revenue outlook for fiscal 2027.
The new guidance midpoint of $6.608 billion implies 25.8% year-over-year growth, surpassing the market consensus of $6.545 billion by $63 million. Management also raised its guidance midpoint by an additional $64 million, following a $48 million beat in the second quarter. The updated outlook reflects $421 million in net new ARR and marks the sixth consecutive quarter of accelerating total ARR growth, according to the company’s fourth-quarter update.
CrowdStrike’s year-over-year net new ARR outlook for fiscal 2027 was increased by 630 basis points quarter-over-quarter, bringing the cumulative upward adjustment to more than $100 million since the beginning of the year. The company reported adjusted net income of $0.31 per share on revenue of $1.47 billion for the second fiscal quarter.
Growth was driven by demand for AI-based security solutions across the Falcon platform, particularly in Endpoint, Adversary Detection and Response, Next-Gen SIEM, Identity, Cloud Security, and Exposure Management segments. The company’s AI-driven detection and response ARR nearly tripled quarter-over-quarter. Management also highlighted an upcoming inflection point tied to the Mythos platform.
CrowdStrike’s stock has gained 103% over the past six months, closing at $189.18 on Thursday. While Jefferies maintained its bullish stance, InvestingPro noted that the shares may be trading above its fair value estimate.
The upgrade follows broader strength in cybersecurity valuations on Wall Street, where CrowdStrike remains a key benchmark for next-generation security platforms.
