← CrowdStrike Holdings, Inc.

CRWD · Forward model · Management target case

The Management target case, 20 quarters out

Each segment is projected from its own operating driver, rolled up into consolidated cash flow, and discounted back to a fair value per share. The assumptions below are editable — change them and every number on this page moves with them.

CrowdStrike reports one segment. The only revenue split it publishes is subscription against professional services, and both lines here are reported figures for every quarter shown - nothing is apportioned and no quarter is estimated. The endpoint, cloud, identity, Next-Gen SIEM and AI module framing carries no disclosed revenue and deliberately appears nowhere in the verticals. What is ours: every margin, every capex intensity, the corporate overhead share and the tax rate, because CrowdStrike allocates no operating expense, depreciation or capex to the revenue split. The subscription line is driven off installed ARR because the company has published no subscription customer count since fiscal 2024, so a customers-times-ARPU construction would have to invent its own denominator. Share count is held flat, so roughly 2% a year of net dilution from stock compensation is charged nowhere.

The stated $10 billion of fiscal 2031 ARR, priced with the long-term margin model applied. It lands BELOW the base case, and that is the finding: reaching $10 billion by fiscal 2031 asks less of net new ARR than the current run rate already delivers, so hitting the target is not the bull case - it is a deceleration.

CRWD REVENUE MODEL

Latest: $2.54B (2032Q1E)

Period Value
2024Q2 $732M
2024Q3 $786M
2024Q4 $845M
2025Q1 $921M
2025Q2 $964M
2025Q3 $1.01B
2025Q4 $1.06B
2026Q1 $1.10B
2026Q2 $1.17B
2026Q3 $1.23B
2026Q4 $1.31B
2027Q1 $1.39B
2027Q2E $1.42B
2027Q3E $1.48B
2027Q4E $1.53B
2028Q1E $1.58B
2028Q2E $1.64B
2028Q3E $1.70B
2028Q4E $1.75B
2029Q1E $1.81B
2029Q2E $1.87B
2029Q3E $1.92B
2029Q4E $1.98B
2030Q1E $2.04B
2030Q2E $2.10B
2030Q3E $2.16B
2030Q4E $2.22B
2031Q1E $2.28B
2031Q2E $2.35B
2031Q3E $2.41B
2031Q4E $2.47B
2032Q1E $2.54B

What drives each segment

Subscription

Capacity × utilisation × price
Basis quarter$1.32B
Final quarter$2.47B
Implied CAGR+13%
Share of revenue, final quarter97%
PV of segment cash flow$12.73B

The Falcon platform sold as recurring subscriptions, and 95% of revenue. What a quarter can earn is set by the annual recurring revenue already installed at the end of it: a dollar of ARR turns into a quarter of itself in a quarter. Growth is therefore net new ARR compounding on a base that renews at a 115% dollar-based net retention rate, which is why this line is modelled as installed capacity rather than as customers times a price CrowdStrike does not publish.

Last four quarters
2026 Q2 $1.10B Reported
2026 Q3 $1.17B Reported
2026 Q4 $1.24B Reported
2027 Q1 $1.32B Reported
Falcon platform modulesFalcon Flex commitmentsManaged services
ARR base 5509 $M of ARR at the basis quarter ARR of $5,508.6M disclosed in the 10-Q as of 30 April 2026. This is the installed base, not a forecast.
Net new ARR 285 $M of ARR/qtr changing +3.0% per quarter $285M, the Q2 FY2027 ARR guidance midpoint less disclosed ARR. Management's number for the next quarter's build.
Utilisation 95% share of a quarter of ending ARR that lands as revenue, gliding toward 97% Guided Q2 subscription revenue over a quarter of guided ending ARR. Has run 94.6-95.9% for two years.
Revenue per $M of ARR $250000/qtr drifting +0.0% per quarter Definitional: a dollar of annual recurring revenue yields $0.25 in a quarter, so $250,000 per $1M of ARR.
Subscription

Latest: $2.47B (2032Q1E)

Period Value
2024Q2 $690M
2024Q3 $733M
2024Q4 $796M
2025Q1 $872M
2025Q2 $918M
2025Q3 $963M
2025Q4 $1.01B
2026Q1 $1.05B
2026Q2 $1.10B
2026Q3 $1.17B
2026Q4 $1.24B
2027Q1 $1.32B
2027Q2E $1.36B
2027Q3E $1.41B
2027Q4E $1.46B
2028Q1E $1.52B
2028Q2E $1.57B
2028Q3E $1.63B
2028Q4E $1.68B
2029Q1E $1.74B
2029Q2E $1.80B
2029Q3E $1.86B
2029Q4E $1.91B
2030Q1E $1.97B
2030Q2E $2.03B
2030Q3E $2.09B
2030Q4E $2.15B
2031Q1E $2.22B
2031Q2E $2.28B
2031Q3E $2.34B
2031Q4E $2.41B
2032Q1E $2.47B

Assumptions & reasoning

  • Every quarter here is subscription revenue as reported on the face of a CrowdStrike release. Nothing is apportioned and nothing is estimated.
  • ARR is measured at period end while revenue accrues through the quarter, which is the whole job of the utilisation input: it has sat between 94.6% and 95.9% of a quarter of ending ARR for two years.
  • CrowdStrike allocates no operating expense, depreciation or capex to the revenue split, so the margin and capex inputs on this line are ours and no disclosure tests them.
  • Net new ARR is heavily fourth-quarter weighted and this projection carries no seasonality, so a constant build rate lands fiscal 2027 exit ARR about 2% below the guided range while hitting the revenue guide.

Professional services

Growth path
Basis quarter$65M
Final quarter$67M
Implied CAGR+1%
Share of revenue, final quarter3%
PV of segment cash flow$31M

Incident response, proactive consulting and technical assessments. It is sold partly as a route into a subscription rather than for its own margin, it is excluded from ARR and from the dollar-based net retention rate, and it has been flat at roughly $65 million a quarter for six quarters.

Last four quarters
2026 Q2 $66M Reported
2026 Q3 $66M Reported
2026 Q4 $63M Reported
2027 Q1 $65M Reported
Incident responseProactive consulting and assessments
Sequential growth +2.0%/qtr decaying toward +1.0% Sequentially flat for six quarters. 2% a quarter is the drift, not the 23% year-over-year headline off an easy comparison.
Professional services

Latest: $67M (2032Q1E)

Period Value
2024Q2 $42M
2024Q3 $53M
2024Q4 $49M
2025Q1 $49M
2025Q2 $46M
2025Q3 $47M
2025Q4 $50M
2026Q1 $53M
2026Q2 $66M
2026Q3 $66M
2026Q4 $63M
2027Q1 $65M
2027Q2E $65M
2027Q3E $66M
2027Q4E $66M
2028Q1E $66M
2028Q2E $67M
2028Q3E $67M
2028Q4E $67M
2029Q1E $67M
2029Q2E $67M
2029Q3E $67M
2029Q4E $67M
2030Q1E $67M
2030Q2E $67M
2030Q3E $67M
2030Q4E $67M
2031Q1E $67M
2031Q2E $67M
2031Q3E $67M
2031Q4E $67M
2032Q1E $67M

Assumptions & reasoning

  • Reported on the face of every release alongside subscription, so this line needs no apportionment and carries no estimated quarter.
  • Excluded from ARR and from the dollar-based net retention rate, which is exactly why it sits outside the subscription driver rather than inside it.
  • Gross margin was 17% in the basis quarter and delivery headcount consumes the rest, so it is modelled as a break-even funnel rather than a profit centre.
  • At 4.7% of revenue it cannot decide the answer. It is here so the consolidated line reconciles to what CrowdStrike actually reports.
Scenarios

Where each case comes from

Bear case — primary sources

The primary sources this case is built from — filings, calls and posts. Where they are claims by an interested party rather than disclosures, every number in the Bear column is what happens if they are taken at face value.

Bull case — primary sources

The primary sources this case is built from — filings, calls and posts. Where they are claims by an interested party rather than disclosures, every number in the Bull column is what happens if they are taken at face value.

Management target case — primary sources

The primary sources this case is built from — filings, calls and posts. Where they are claims by an interested party rather than disclosures, every number in the Management target column is what happens if they are taken at face value.

Valuation

From cash flow to fair value

Present value of free cash flow, 20 quarters$10.07B
Terminal-year revenue$9.77B
Terminal-year EBITDA$4.59B
Exit multiple, on revenue12.0x
Terminal value$117.22B
Discounted at 10.0% a year, terminal value becomes$72.78B
Enterprise value$82.86B
Net cash$3.81B
Equity value$86.66B
Diluted shares1.03B
Fair value per share$84.14
Against the current price of $190.34-56%

10% on a profitable, cash-generative large-cap with $3.8B of net cash and no financing need. 12x terminal revenue on a 35% free-cash-flow margin is about 34x cash flow - a mature compounder's multiple, not a hypergrowth one.

Read the other way round: at $190.34 the market is paying 30.0x terminal-year revenue, holding every other assumption on this page fixed. That is the number to argue about.

Quarter by quarter

The projected path

Quarter SubscriptionProfessional services Revenue YoY EBITDA Capex FCF R40 PV of FCF
2027 Q2E $1.36B$65M $1.42B +22% $578M $87M $417M +51 $408M
2027 Q3E $1.41B$66M $1.48B +20% $609M $88M $443M +50 $422M
2027 Q4E $1.46B$66M $1.53B +17% $640M $90M $468M +48 $436M
2028 Q1E $1.52B$66M $1.58B +14% $672M $92M $493M +46 $448M
2028 Q2E $1.57B$67M $1.64B +15% $704M $93M $519M +47 $460M
2028 Q3E $1.63B$67M $1.70B +15% $735M $95M $544M +47 $472M
2028 Q4E $1.68B$67M $1.75B +14% $767M $97M $570M +47 $482M
2029 Q1E $1.74B$67M $1.81B +14% $799M $99M $595M +47 $492M
2029 Q2E $1.80B$67M $1.87B +14% $832M $101M $621M +47 $501M
2029 Q3E $1.86B$67M $1.92B +13% $864M $103M $647M +47 $510M
2029 Q4E $1.91B$67M $1.98B +13% $897M $105M $673M +47 $518M
2030 Q1E $1.97B$67M $2.04B +13% $930M $108M $699M +47 $525M
2030 Q2E $2.03B$67M $2.10B +13% $963M $110M $725M +47 $532M
2030 Q3E $2.09B$67M $2.16B +12% $996M $113M $751M +47 $538M
2030 Q4E $2.15B$67M $2.22B +12% $1.03B $115M $777M +47 $544M
2031 Q1E $2.22B$67M $2.28B +12% $1.06B $118M $804M +47 $549M
2031 Q2E $2.28B$67M $2.35B +12% $1.10B $120M $830M +47 $554M
2031 Q3E $2.34B$67M $2.41B +12% $1.13B $123M $857M +47 $558M
2031 Q4E $2.41B$67M $2.47B +11% $1.17B $126M $884M +47 $562M
2032 Q1E $2.47B$67M $2.54B +11% $1.20B $129M $911M +47 $566M

Every row is projected. A year-over-year change is shown only where the quarter it compares against exists — an em dash means there is no comparable quarter, not a flat year.

Track record

Model revisions

Assumptions are marked to reality as each quarter prints. Every change is appended here, with the fair value the model produced at the time, so the model's own history stays visible.

DateChangedFair value thenNote
2026-08-21 all $103.72 First build, on the fiscal 2027 first-quarter basis and five days before the second-quarter print.