Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.
Important Morning Star Metrics for Cloud Strike
What we think about Crowdstrike’s revenue
Cloud Strike The crust FY2026 kicked off with a series of solid financial results highlighting the robust demand the company enjoys for its solutions. Sales increased 20% to $1.1 billion, with an adjusted margin of 490 basis points to 18%.
Why it matters: With the infamous July 19 outage, nearly a year ago, the ability to continue to expand toplines with healthy clips while continuing to expand beyond endpoint security is evidence of how important cloud strikes are to clients.
In a cybersecurity situation, especially marked by security toolkit fatigue, buyers are increasingly turning their eyes to vendor integration to streamline security budgets as well as improve security outcomes and benefit major vendors such as cloud strikers. Advances in cloud security, identity security and security operations are at the right time and meet specific customer demands.
Conclusion: We maintain a fair value estimate of $330 per share in the narrow moat Cloud Strike, with the company’s quarterly results primarily in line with previous estimates. Although stocks have declined outside of business hours, we continue to consider them as overvalued.
Just like in its last few quarters, Crowdstrike saw a significant increase in operating costs due to fallout from the July 19 suspension. This is the key driver behind the contract margin for the third quarter, the first full po-restor quarter of the third quarter, and we hope to close the margins beyond 2026.
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