DA Davidson Reiterates Buy on CrowdStrike After Q3, Flags Strong ARR Outlook

Overview

• DA Davidson kept a Buy rating and $580 price target following fiscal Q3, pointing to ARR reacceleration and an outlook that exceeded consensus for net new ARR.
• Management guided to more than 50% growth in net new ARR for the second half of FY26 and more than 20% growth in FY27, with Q4 net new ARR at a $301 million midpoint versus a $290 million estimate.
• CrowdStrike’s Q3 delivered about $1.23 billion in revenue, up 22% year over year, with ARR of $4.92 billion up 23% and a record net new ARR addition of roughly $264.6 million.
• The quarter included a GAAP net loss of $34 million but record non‑GAAP operating income and EPS, contributing to continued confidence in the Falcon platform’s expansion.
• Citizens maintained Market Outperform with a $550 target, noting CY26E valuation of 21.5x EV/revenue and 71.7x EV/FCF, while the target implies about 23.4x EV/revenue versus peer averages; shares remain a large‑cap at roughly $123.2 billion with mixed recent performance.