Scotiabank Lowers CrowdStrike (CRWD) PT to $440 Despite Strong Q2 Earnings Report

CrowdStrike Holdings Inc. (NASDAQ:CRWD) is one of the best QQQ stocks to buy right now. On August 28, Scotiabank analyst Patrick Colville lowered the firm’s price target on CrowdStrike to $440 from $480, while maintaining a Sector Perform rating on the shares. The firm continues to be impressed with the company’s delivery following its Falcon Outage Incident in July 2024. However, the firm does remain cautious and barely increased its revenue target for FY2026.

This sentiment followed the company’s FQ2 2026 earnings report, where CrowdStrike Holdings’ total revenue grew by 21% year-over-year to $1.17 billion, with subscription revenue at $1.10 billion, which itself was a 20% increase. The professional services revenue also stood at a record $66 million. Net new Annual Recurring Revenue/ARR reached a record $221 million. The ending ARR stood at $4.66 billion, which was a 20% increase.

The combined ARR from its Cloud, Next-Gen Identity, and Next-Gen SIEM products exceeded $1.56 billion, growing over 40% year-over-year. The company’s cash position remains strong, with a record $4.97 billion in cash and cash equivalents. It also reported a record Q2 free cash flow of $284 million, representing 24% of revenue.

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

While we acknowledge the potential of CRWD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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