Jefferies Raises CrowdStrike (CRWD) PT to $530 from $520 Amid Cybersecurity Outlook

CrowdStrike Holdings Inc. (NASDAQ:CRWD) is one of the best growth stocks to buy and hold for 3 years. On July 24, Jefferies increased its price target for CrowdStrike to $530 from $520 and reiterated a Buy rating on the shares. The firm expects cybersecurity spending to continue, while maintaining a consistent percentage of software budgets in the coming years due to the increasing importance of the security sector.

In FQ1 2026, the company reported a net new ARR of $194 million and an ending ARR of $4.44 billion, which showed a 22% year-over-year increase. The company reported a subscription gross margin of 80%, a robust gross retention rate of 97%, and free cash flow of $279.4 million, which is 25% of revenue.

Total revenue reached $1.10 billion, which was up 20% year-over-year, with subscription revenue at $1.05 billion (also up 20% year-over-year) and professional service revenue at $52.7 million. However, there is a temporary divergence between ARR and subscription revenue due to the Customer Commitment Program/CCP, which is expected to have a near-term impact of $10 million to $15 million on subscription revenue per quarter.

CrowdStrike Holdings Inc. (NASDAQ:CRWD) provides cybersecurity solutions internationally. Its unified platform provides cloud-delivered protection of endpoints, cloud workloads, identity, and data through a SaaS subscription-based model.

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Disclosure: None. This article is originally published at Insider Monkey.