CrowdStrike's stock jumps after record-breaking earnings. Wall Street is lapping it up.

By Nora Redmond

Citigroup, Jefferies and RBC Capital Markets all raised their price targets for CrowdStrike's stock.

Shares in CrowdStrike Holdings surged after the technology company posted record-breaking results in its second quarter. Strategists say the stock has further to go as threats from artificial intelligence mount.

Its stock (CRWD) jumped 20.5% on Thursday following management's announcement that risks associated with AI fueled growth.

The cybersecurity company said revenue in the three-month period ended July 31 rose 26% on a year-on-year basis to $1.47 billion, while annual recurring revenue, or ARR - which indicates the income it expects to receive from customer contracts - increased 25% from the same quarter a year earlier to $5.84 billion. Both figures surpassed Wall Street consensus expectations.

Citigroup lifted its share-price target for CrowdStrike following the results, raising it from $250 to $260. The strategists, led by Fatima Boolani, pointed to the company's expectation of high growth in the second half of the year, with a boosted forecast of about a 34% increase in ARR.

Analysts at Jefferies, headed by Joseph Gallo, also changed their price target for the stock, upping it to $240 from a prior estimate of $230, and referring to the company as "a clear fundamental winner."

They wrote in a note on Thursday that CrowdStrike is reaping the rewards of the consequences of Anthropic's release of Mythos, which include making cybersecurity a top priority for technology companies because of the model's threat to software vulnerabilities.

The analysts were also impressed by CrowdStrike management's confidence in revised guidance, which likely means higher revenue growth in the next two quarters.

RBC Capital Markets marginally raised its price target for the stock from $256 to $260.

Strategists led by Matthew Hedberg wrote in a recent note that the company's strong earnings beat and its decision to lift its outlook should satisfy the expectations of investors, which have gotten increasingly high.

They see security needs surrounding the adoption of AI growing, adding to the opportunity for CrowdStrike to profit.

-Nora Redmond

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08-27-26 1853ET