TD Cowen Reiterates 'Buy' Rating on CrowdStrike Holdings (CRWD) Amid Strong Platform Adoption

CrowdStrike Holdings (CRWD) is a top cybersecurity stock to buy, with TD Cowen reiterating a 'Buy' rating and $500 price target. The company's solid Q2 results affirm strong demand for its cybersecurity solutions, with $221 million in net new annual recurring revenue and guidance for continued growth. TD Cowen expects continued growth momentum amid a stabilizing macroeconomic environment and the expansion of the non-Endpoint Detection and Response module.

CrowdStrike Holdings (CRWD) reported solid Q2 results, with $221 million in net new annual recurring revenue (ARR) and a 20% year-over-year (YoY) ARR growth, affirming strong demand for its cybersecurity solutions. The company's performance has been bolstered by the success of its Falcon Flex model, which has driven a 20% YoY ARR growth to $4.66 billion [1].

Falcon Flex, a modular, consumption-based pricing model, has been a key driver of CrowdStrike's growth. It allows customers to pay only for the modules they use, aligning with enterprise IT's shift toward cost optimization. The model's success is evident in its metrics: over 1,000 customers are now utilizing Falcon Flex, with utilization rates exceeding 75% [1]. Furthermore, "reflex activity" among Flex users has nearly doubled, generating an average 50% ARR uplift per account. This indicates that the model is not only attracting new customers but also deepening relationships with existing ones, creating a flywheel effect.

CrowdStrike's ability to monetize AI effectively, as seen with Charlotte AI automating 30% of security workflows, has positioned it as a leader in the cybersecurity consolidation wave. However, the company faces intense competition from rivals like Zscaler and Palo Alto Networks, which are expanding their offerings and making strategic acquisitions [2].

Despite these challenges, CrowdStrike's valuation, trading at a forward P/E of 119.05 and a market cap exceeding $104 billion, is justified by its platform-driven approach and AI integration. The cybersecurity sector's valuation multiples remain insulated from broader market swings, with firms trading at an average P/S ratio of 8.5x [3].

TD Cowen reiterated a 'Buy' rating for CrowdStrike, with a $500 price target, citing continued growth momentum amid a stabilizing macroeconomic environment and the expansion of the non-Endpoint Detection and Response module. The company expects ARR growth of at least 40% in the second half of fiscal 2026, driven by its next-gen AI solutions and Falcon Flex licensing model [4].

Looking ahead, CrowdStrike's ability to convert product-led growth into durable financial metrics will be crucial for maintaining its premium valuation. Investors should monitor reflex activity trends, AI adoption rates, and the pace of competitor responses to gauge the company's ability to sustain its growth trajectory.

[1] CrowdStrike Q2 Revenue Tops $1.1 Billion [https://www.nasdaq.com/articles/crowdstrike-q2-revenue-tops-11-billion]
[2] ZS Q4 2025: Revenue Reaches $719M, Surpassing Estimates with 21% YoY Growth [https://mlq.ai/news/zs-q4-2025-revenue-reaches-719m-surpassing-estimates-with-21-yoy-growth-focus-on-ai-security-innovation/]
[3] Top 5 Cybersecurity Stocks to Own in 2025: Morgan Stanley [https://www.investing.com/news/stock-market-news/top-5-cybersecurity-stocks-to-own-in-2025-morgan-stanley-93CH-4218869]
[4] CrowdStrike (CRWD) Earnings Preview: A Big Test for ... [https://www.tastylive.com/news-insights/crowdstrike-earnings-preview-test-for-cybersecurity-leader]