Is CrowdStrike Ready to Rally After Its Recent Pullback?

For the first two weeks of November, CrowdStrike Holdings Inc. (NASDAQ: CRWD) successfully avoided the broader sell-off in technology stocks. However, since Nov. 11, CRWD stock is down about 8%.

The stock is currently enjoying a small rally on light volume in an abbreviated trading week, putting it right at its 50-day simple moving average (SMA). But overall sentiment and technicals are indifferent about the stock’s outlook and seeking direction.

That direction could come on Dec. 2, when CrowdStrike reports its third-quarter earnings for the 2026 fiscal year.

Investors know the drill. This will be about more than the headline numbers. CrowdStrike's guidance is likely to determine if the stock can reverse its slide and head toward a new all-time high.

Analysts Expect More of the Same for Earnings

CrowdStrike has consistently delighted investors with strong year-over-year (YOY) growth in revenue and earnings, and more of the same is expected in the coming quarter. Analysts are projecting the company to deliver earnings per share (EPS) of 94 cents on revenue of $1.22 billion.

That would mark a 20% YOY beat on the top line and would be consistent with CrowdStrike’s pattern of delivering 20+ YOY revenue growth over the last few quarters.  

A number like that would also be bullish for the company’s free cash flow, which has been rising over the last few quarters.

Healthy revenue could confirm strong annual recurring revenue—which grew 40% YOY last report—highlighting a long runway in AI-driven cybersecurity.

However, EPS expectations are more tempered. Meeting the consensus target would represent only a 1-cent improvement over the prior quarter. That said, some analysts are forecasting stronger results, with a “whisper number” of $1.00 and one estimate reaching as high as $1.07.

In the short term, this mixed backdrop suggests a lower bias for CRWD stock heading into earnings, as traders protect gains after a nearly uninterrupted rally since early 2023. Yet, this pullback may be constructive—cooling sentiment and clearing weaker hands, which could ultimately pave the way for a healthier setup if earnings validate the growth story.

Bullish Price Targets Could Be the Signal

Even with the recent pullback, CRWD stock is only about 5% below its consensus price target, supporting the argument that some investors are concerned about a lofty valuation.

But the CrowdStrike analyst forecasts on MarketBeat show a more bullish picture. Over a dozen analysts have raised their price target for CRWD stock in November alone. Several of those targets are at or above $600. That suggests a belief that the company’s earnings report may come in more bullish than expected.

The Bullish Trend Is Still in Place for CRWD Stock

The bull market in CRWD stock began in January of 2023. The recent pullback is one of many that the stock has experienced during its three-year run, and it’s not even the most severe.

This suggests that recent weakness is likely profit-taking and risk management by investors sitting on substantial gains. The pullback could serve as a reset, giving long-term investors a better entry point ahead of what’s typically a strong December for high-quality technology stocks.

Meanwhile, the macro environment continues to favor cybersecurity leaders. Demand is rising not only due to increased digital threats, but also because of new risks stemming from artificial intelligence. CrowdStrike’s Falcon platform is uniquely positioned to address these evolving needs, reinforcing its leadership in AI-enhanced cybersecurity well into 2026 and beyond.

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The article "Is CrowdStrike Ready to Rally After Its Recent Pullback?" first appeared on MarketBeat.