CrowdStrike Earnings Q2 2026: Buy or Sell Ahead of August 27 Announcement

CrowdStrike Holdings (CRWD) is scheduled to announce Q2 earnings on August 27. Analysts expect earnings of $0.83 per share, down 20% YoY, and revenues of $1.15 billion, up 19% YoY. The stock has climbed 23% YTD and 58% over the past year, driven by strong momentum in AI-powered security and cloud-native Falcon platform. However, concerns remain around high valuation and softer sales growth in H2. Wall Street remains cautiously optimistic, with a Moderate Buy consensus rating and an average stock price target of $497.15, implying an 18.21% upside risk.

CrowdStrike Holdings (CRWD) is scheduled to announce its second-quarter fiscal 2026 earnings on August 27, 2025. Analysts expect earnings of $0.83 per share, down 20% year-over-year (YoY), and revenues of $1.15 billion, up 19% YoY. The stock has climbed 23% year-to-date (YTD) and 58% over the past year, driven by strong momentum in AI-powered security and the cloud-native Falcon platform. However, concerns remain around high valuation and softer sales growth in the second half of the fiscal year. Wall Street remains cautiously optimistic, with a Moderate Buy consensus rating and an average stock price target of $497.15, implying an 18.21% upside risk.

Key Factors Influencing Q2 Results

CrowdStrike's second-quarter fiscal 2026 results are likely to benefit from the robust demand for its cybersecurity products, given the increasing number of threat incidents across the globe. The company's Falcon Flex subscription model is expected to remain a major growth driver. During the first quarter of fiscal 2026, CrowdStrike added $774 million of total Falcon Flex account value, bringing the total deal value of accounts that have adopted Falcon Flex to $3.2 billion [1].

CrowdStrike's partnership with Amazon Web Services (AWS) is another bright spot. The company expanded its offerings through a deeper partnership with AWS in July 2025, launching falcon-mcp and AI Red Team Services in the AWS Marketplace. This partnership is expected to increase co-selling opportunities and expand the volume of transactions through Amazon's AWS Marketplace [1].

Valuation and Stock Performance

CrowdStrike is trading at a premium with a forward 12-month price-to-sales (P/S) ratio of 19.54X compared to the industry's 12.02X, reflecting a stretched valuation [1]. Despite the high valuation, the stock has outperformed its peers. In the year-to-date period, shares of CrowdStrike have climbed 21.1%, outperforming the Zacks Security industry and its peers, including Check Point Software CHKP, Palo Alto Networks PANW, and SentinelOne S [1].

Analyst Ratings and Price Targets

Investing.com reported that Stifel maintained its Buy rating and $495.00 price target on CrowdStrike ahead of the company's earnings report. Analysts' targets range from $330 to $610, with 31 analysts recently revising their earnings expectations upward for the upcoming period [3]. Guggenheim maintained a Neutral rating on the company, expecting CrowdStrike to meet consensus estimates for second-quarter total revenue and annual recurring revenue, though it notes potential revenue risks in the latter half of the fiscal year. Meanwhile, Evercore ISI lowered its price target for CrowdStrike to $425 from $440 and added the company to its tactical underperform list [3].

Conclusion

As businesses continue prioritizing AI-driven cybersecurity solutions, CrowdStrike's leadership in threat prevention, response, and recovery will only strengthen. However, rising costs, shrinking profits, and premium valuation warrant a cautious approach to the stock. Existing investors are advised to remain invested, while new investors should wait for a better entry point.

References

[1] https://finance.yahoo.com/news/crowdstrikes-pre-q2-earnings-analysis-145500784.html
[2] https://finance.yahoo.com/news/zscaler-crowdstrike-crwd-team-boost-015035518.html
[3] https://www.investing.com/news/analyst-ratings/stifel-reiterates-buy-rating-on-crowdstrike-stock-ahead-of-earnings-93CH-4206427