This article first appeared on GuruFocus.
CrowdStrike Holdings (NASDAQ:CRWD) is heading into its fiscal second-quarter results with investors watching whether elevated cybersecurity spending can support another period of growth.
Wall Street expects revenue to reach $1.44 billion, representing a 23.1% increase from a year earlier. Adjusted earnings are projected at $0.29 per share, down 68.8% year over year.
Warning! GuruFocus has detected 2 Warning Sign with CRWD.
Is CRWD fairly valued? Test your thesis with our free DCF calculator.
The setup remains favorable for the cybersecurity company, which has benefited from greater cloud adoption and rising security requirements linked to artificial intelligence. CrowdStrike has also maintained a strong earnings track record, beating EPS estimates in each of the past two years and topping revenue expectations 88% of the time.
CRWD shares have gained more than 63% so far in 2026, well ahead of the S&P 500's roughly 12% advance. That performance raises the bar for the upcoming report, particularly as investors assess whether current growth expectations are already reflected in the valuation.
Recent estimate changes point to continued optimism. Analysts have made 21 upward EPS revisions versus 14 downward revisions, while revenue estimates recorded 32 upward changes compared with eight reductions over the past three months.
KeyBanc raised its price target to $240 from $234 while maintaining an Overweight rating, citing checks that suggest healthy demand. Stephens also kept an Overweight view, pointing to continued momentum among large cybersecurity platforms.
Another strong revenue performance could support the rally, but the shares may face pressure if results or outlook fall short of elevated expectations.