CRWD
CrowdStrike Holdings, Inc.
Technology · Software - Infrastructure · United States · Stock
Score Breakdown
Scored for Speculative Opportunities profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The model score is weighed down heavily by zero scores in profitability and dividends, as all margin and return metrics are negative and no dividend is paid.
- The momentum factor provided the largest positive contribution, reflecting four consecutive quarters of rising revenue and a meaningful recovery in net income from deep losses.
- The strong top-line growth of +21.7% year-over-year earned a moderate growth score, but the sharp worsening of net losses prevented a higher rating.
Why Not Higher
- Profitability remains entirely negative across net margin, operating margin, and return on assets, earning zero profitability credit and significantly limiting the composite score.
- The renewed operating loss of -$30,600,000 in 2027Q1 after a brief positive quarter tempered the momentum score and reflects ongoing uncertainty about the path to consistent profitability.
Data Confidence
7 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2025's $3,953,624,000 to FY2026's $4,812,005,000, a gain of +21.7%. However, net income deteriorated from -$15,241,000 in FY2025 to -$162,502,000 in FY2026 (-966.2%), and diluted EPS fell from -$0.06 in FY2025 to -$0.65 in FY2026 (-983.3%).
The model rewarded the strong top-line expansion but penalized the sharp worsening of bottom-line losses, resulting in a moderate rather than high growth score.
In FY2026, CrowdStrike reported a net margin of -3.4%, an operating margin of -6.1%, and a return on assets of -1.5%, all of which are negative.
The model assigns no profitability credit when all key margin and return metrics are negative, reflecting that the company has not yet converted its revenue scale into bottom-line profitability.
Filing evidence currently available does not support a more specific explanation for this factor.
Revenue has risen consecutively across the last four quarters: $1,168,952,000 in 2026Q2, $1,234,244,000 in 2026Q3, $1,305,375,000 in 2026Q4, and $1,385,629,000 in 2027Q1. Net income also improved materially over this span, moving from -$77,675,000 in 2026Q2 to positive $53,434,000 in 2026Q4, though it dipped back to $27,774,000 in 2027Q1. Operating income followed a similar recovery arc, turning briefly positive at $7,843,000 in 2026Q4 before returning to -$30,600,000 in 2027Q1.
The model rewarded the consistent sequential revenue acceleration and the meaningful improvement in net income from deep losses toward near-breakeven, while the renewed operating loss in 2027Q1 tempered the score below the maximum.
CrowdStrike does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
The model assigns a zero dividend score to confirmed non-payers, as there is no income return to shareholders through distributions to reward.
CrowdStrike is assigned to the Cybersecurity macro theme.
Although the company is assigned to the actively tracked Cybersecurity theme, this assignment did not translate into a positive score under the model's current methodology.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
CrowdStrike delivered strong top-line growth of +21.7% year-over-year, reaching $4,812,005,000 in FY2026 revenue, but net losses deepened sharply to -$162,502,000, pushing the net margin to -3.4% and operating margin to -6.1%. On a quarterly basis, revenue has risen consecutively for four straight quarters and net income has recovered meaningfully from deep losses toward near-breakeven, though operating income slipped back into negative territory in 2027Q1. The company pays no dividend and all profitability metrics remain negative, resulting in a total model score reflecting significant financial risk.
Plain English
CrowdStrike is growing its sales fast, but it's still losing money overall, and those losses actually got much worse last year even as revenue climbed — though recent quarterly trends show some improvement toward breaking even.
Bull Case vs. Bear Case
Bull Case
- Revenue has grown consistently, rising +21.7% year-over-year to $4,812,005,000 in FY2026 and continuing to accelerate each quarter through 2027Q1 at $1,385,629,000.
- Net income improved dramatically on a quarterly basis, moving from -$77,675,000 in 2026Q2 all the way to a positive $53,434,000 in 2026Q4, suggesting a path toward profitability.
- CrowdStrike operates in the Cybersecurity macro theme, an actively tracked sector with ongoing relevance.
Bear Case
- Annual net income deteriorated sharply from -$15,241,000 in FY2025 to -$162,502,000 in FY2026, a decline of -966.2%, and diluted EPS fell from -$0.06 to -$0.65.
- All key profitability metrics remain negative in FY2026: net margin of -3.4%, operating margin of -6.1%, and return on assets of -1.5%, meaning the company has not converted revenue scale into bottom-line profit.
- Operating income returned to -$30,600,000 in 2027Q1 after briefly turning positive in 2026Q4, raising questions about the durability of the profitability recovery.
What Could Change the Picture
Bullish Triggers
- Sustained positive net income and operating income across multiple consecutive quarters would signal that the recent near-breakeven performance is a durable trend rather than a one-quarter event.
- A meaningful improvement in operating margin toward positive territory would suggest the company is successfully converting its strong revenue growth into bottom-line results.
Bearish Triggers
- A reversal or deceleration in the consistent sequential quarterly revenue growth trend would undermine the primary bull case supporting the momentum score.
- Further widening of annual net losses beyond the -$162,502,000 reported in FY2026 would reinforce concerns that profitability remains structurally out of reach.
Risk Profile
Very High RiskThe risk rating is Very High, reflecting that all profitability metrics are negative and the company reported a net loss of -$162,502,000 in FY2026. While quarterly momentum shows improvement, the return to an operating loss of -$30,600,000 in 2027Q1 highlights that financial performance remains volatile and unpredictable.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.