CrowdStrike(US:CRWD) ZACKS·2025-10-07 15:50Core Insights - CrowdStrike has introduced new features in its Falcon Next-Generation Identity Security platform to enhance protection across various identities, including human, machine, and AI agents [1][11] Product Updates - The new FalconID tool offers passwordless, phishing-resistant MFA using FIDO2 standards, delivered through the Falcon mobile app, which utilizes real-time endpoint and identity signals to prevent credential-based breaches [2][11] - Falcon Privileged Access has been expanded to simplify management of complex Active Directory and Microsoft Entra ID setups, focusing on automating access grants and revocations through Microsoft Teams and Falcon Fusion SOAR [3] - Identity-driven case management has been added to link related detections into a single case within Falcon's Next-Generation SIEM, combining endpoint, cloud, and SaaS telemetry for faster investigation and response [4] Business Performance - CrowdStrike's identity business reached $435 million in ARR in Q2 of fiscal 2026, reflecting a 21% year-over-year increase, indicating strong adoption momentum [5][11] - The company aims to transition customers from legacy IAM and PAM tools to its platform, which could help achieve its long-term target of $10 billion in ARR by fiscal 2031 [5] Competitive Landscape - CyberArk and Okta are key competitors in the identity security space, with CyberArk enhancing its platform through AI integration and Okta focusing on AI-driven tools for risk detection and user access management [6][7][8] Market Performance - CrowdStrike's shares have increased by 45.1% year to date, outperforming the Security industry's growth of 21.1% [9] - The company trades at a forward price-to-sales ratio of 22.75X, significantly higher than the industry's average of 13.28X [12] Earnings Estimates - The Zacks Consensus Estimate for CrowdStrike's fiscal 2026 earnings indicates a year-over-year decline of 6.6%, while fiscal 2027 earnings are expected to grow by 29.3% [15]