Is CrowdStrike Stock a Buy After Falling 17% Year to Date?

Shares of cybersecurity specializer CrowdStrike (NASDAQ: CRWD) are down meaningfully aboriginal successful 2026, contempt the institution announcing different 4th of beardown maturation and currency procreation erstwhile it reported quarterly results past December.

Is the disconnect betwixt the stock's caller show and the underlying concern the ground for a buying opportunity?

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With the institution scheduled to merchandise its fiscal fourth-quarter and full-year results connected March 3, this is simply a timely question. After all, better-than-expected results could origin shares to rebound erstwhile the institution reports earnings. Of course, investors can't regularisation retired the anticipation that the banal volition autumn erstwhile CrowdStrike reports earnings, either.

Unfortunately, there's nary mode to cognize however the banal volition determination aft the report, truthful investors whitethorn beryllium amended disconnected focusing connected the longer-term (and arguably much important) question: Does the banal look undervalued comparative to its semipermanent potential?

CrowdStrike's 3rd 4th of fiscal 2026 (ended Oct. 31, 2025) showed that its subscription gross continued to thrust robust results, with its information module adoption rates remaining strong.

The company's gross roseate 22% twelvemonth implicit twelvemonth to $1.23 billion, portion subscription gross grew 21% to $1.17 billion. CrowdStrike said 49% of its customers were utilizing six oregon much modules, up from 48% successful fiscal Q2 and 47% successful the year-ago period. Impressively, 34% and 24% of customers person adopted 7 and 8 modules, respectively.

CrowdStrike said yearly recurring gross (ARR) roseate 23% twelvemonth implicit twelvemonth to $4.92 billion, and nett caller ARR was $265 cardinal successful the quarter. ARR is the annualized worth of lawsuit subscription contracts arsenic of the measurement date, assuming contracts that expire successful the adjacent 12 months renew connected existing terms.

The cybersecurity company's currency procreation was a spot arsenic well. Operating currency travel was $398 cardinal and escaped currency travel was $296 million, translating to a escaped currency travel borderline (free currency travel arsenic a percent of revenue) of 24% successful the quarter. This robust currency procreation helped the institution extremity the play with $4.8 cardinal successful currency and currency equivalents.

"Q3 was 1 of our champion quarters successful institution history," said CEO George Kurtz successful the company's third-quarter net release. He pointed to its level attack intended to assistance customers consolidate information tools.