CrowdStrike Earnings: Macro Headwinds Fail to Throw Firm Off Balance as Strong Execution Continues

We are maintaining our $300 fair value estimate for narrow-moat CrowdStrike after the firm kicked off fiscal 2025 with strong financial results slightly ahead of our above-consensus expectations. While security companies that have reported in recent weeks have been a mixed bunch, with certain vendors calling out a tough macroenvironment and elongated sales cycles, we are impressed by CrowdStrike’s ability to execute well despite the macro challenges. From a valuation perspective, we view CrowdStrike’s shares as fairly valued and trading in the 3-star range. While we continue to view CrowdStrike as a high-quality security vendor with an impressive track record, we’d point investors seeking cybersecurity exposure toward Palo Alto and Fortinet, two wide-moat security vendors currently trading in the 4-star range.