Core Viewpoint - CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is recognized as one of the top-performing AI stocks as it approaches 2026, with analysts projecting strong financial results and growth in annual recurring revenue [1][2]. Group 1: Price Target Adjustments - DA Davidson raised its price target for CrowdStrike from $515 to $580 while maintaining a Buy rating ahead of the fiscal third quarter results [1]. - Jefferies also increased its price target from $515 to $600, keeping a Buy rating, anticipating high single-digit growth in net new annual recurring revenue (NNARR) for the fiscal third quarter [3]. Group 2: Revenue Growth Expectations - DA Davidson expects CrowdStrike to report strong results with continued growth in NNARR, projecting over 20% year-over-year growth for fiscal year 2027 [2]. - Jefferies noted that CrowdStrike could exceed consensus annual recurring revenue (ARR) estimates by approximately 40 basis points based on intra-quarter checks and survey results [4]. Group 3: Company Overview - CrowdStrike is a leading cybersecurity technology company that leverages AI and cloud-based architecture to provide protection across various domains, including endpoints, cloud workloads, identity, and data [4].

Core Insights - Fortinet, Inc. is a cybersecurity company with a market cap of $64.5 billion, offering a range of security solutions including next-generation firewalls and cloud security [1] Performance Overview - Over the past 52 weeks, Fortinet's shares have increased by 6.9%, underperforming the S&P 500 Index which rose by 17.4% [2] - Year-to-date, Fortinet's stock is down 10.9%, while the S&P 500 has surged by 16% [2] - Fortinet has also lagged behind the Xtrackers Cybersecurity Select Equity ETF, which saw a 12.4% increase over the past year and a 9.7% rise year-to-date [3] Financial Performance - In Q2, Fortinet reported total revenue of $1.6 billion, a 13.6% year-over-year increase, slightly exceeding consensus estimates [4] - Net income for the same quarter rose by 15.9% to $440.1 million, and cash flow from operations increased by 12.2% to $1.3 billion [4] - The company's fiscal 2025 revenue guidance of $6.7 billion to $6.8 billion fell short of Wall Street expectations, negatively impacting investor sentiment [5] Earnings Expectations - Analysts project Fortinet's EPS to grow by 5.7% year-over-year to $2.21 for the current fiscal year ending in December [5] - Fortinet has a strong earnings surprise history, having exceeded consensus estimates in each of the last four quarters [5] Analyst Ratings - Among 42 analysts covering Fortinet, the consensus rating is a "Hold," with nine "Strong Buy," 30 "Hold," one "Moderate Sell," and two "Strong Sell" ratings [6] - This rating configuration has become less bullish compared to three months ago, where 14 analysts previously suggested a "Strong Buy" [7] - A recent price target of $87 was maintained by Jonathan Ruykhaver from Cantor Fitzgerald, indicating a potential upside of 3.3% from current levels [7]

Core Insights - CrowdStrike is set to release its earnings on August 27, 2025, and historical stock behavior around earnings announcements can provide insights for traders [2] Earnings Performance - Over the past five years, CrowdStrike's one-day stock movement post-earnings has been evenly split, with 50% of instances resulting in a median gain of 9.8% and the other 50% resulting in a median decline of -5.6% [3][11] - Analysts expect earnings of $0.83 per share on revenue of $1.15 billion for the latest quarter, compared to $1.04 per share on revenue of $964 million a year ago [5] Market Position and Growth - CrowdStrike's market capitalization is currently at $104 billion, with $4.1 billion in revenue over the last twelve months, but the company has not been operationally profitable, reporting operating losses of $252 million and a net loss of $172 million [5] - Since January 2021, CrowdStrike's stock has increased approximately 100%, rising from around $210 to $420, significantly outperforming the S&P 500's 70% increase during the same period [4] Trading Strategies - Traders can utilize historical odds to inform pre-earnings positioning and examine immediate reactions to guide follow-on trades [7] - A lower-risk tactic involves studying correlations between short-term and medium-term returns post-earnings to inform trading strategies [9]