New York, Feb 27, 2026, 14:14 (ET) — Regular trading hours.
CrowdStrike Holdings (CRWD.O) dropped roughly 4% Friday, with rate-sensitive software names under pressure after a stronger-than-expected U.S. inflation reading. Shares lost about $15 to trade at $365.67, after hitting an intraday low of $359.29.
The Labor Department reported a 0.5% jump in the producer price index for January, putting wholesale inflation up 2.9% compared to last year. Growth stocks—priced on future profits—are particularly sensitive; higher inflation can pressure their valuations fast if yields start to rise.
The latest report firmed up views among economists that the Federal Reserve is unlikely to restart rate cuts ahead of its June 16-17 meeting. “We expect the Fed to remain on pause during its upcoming March meeting,” said Ben Ayers, senior economist at Nationwide. Reuters
After Wednesday’s rally, CrowdStrike slipped. The stock jumped 4.9% on Thursday, finishing at $381.10 with some 6.1 million shares traded. Still, it sits roughly 33% off its 52-week peak, according to MarketWatch data.
Quarterly earnings land March 3, and traders are zeroed in on subscription growth—annual recurring revenue, or ARR, stands out as the key metric for software companies right now. DA Davidson trimmed its price target down to $425 from $580 but kept its buy rating intact, pointing to an estimate for net new ARR in the $315 million to $320 million range. That’s still ahead of the consensus figure, which sits at about $301 million.
Jefferies’ Joseph Gallo cut his price target to $500 from $600, sticking with a buy. In a note to clients, Gallo said the valuation premium was still “warranted,” highlighting CrowdStrike’s “insulation from ‘AI’ risk” in his preview. TipRanks
CrowdStrike rolled out FalconID for general use on Thursday, touting the product’s phishing-resistant multi-factor authentication. “Traditional MFA is architecturally broken,” Chief Technology Officer Elia Zaitsev said. CrowdStrike
The company announced plans for its Fal.Con Gov conference, scheduled for March 18 in Washington, D.C., focusing on cyber defense for government agencies. “In the AI era, defending the nation requires real-time intelligence, AI-driven innovation, and coordinated operations,” President Michael Sentonas said. CrowdStrike
Peers have kept nerves frayed in the sector. Zscaler dropped roughly 9% after hours following a wider quarterly loss tied to heavier spending. CEO Jay Chaudhry pointed to “AI is driving demand for security.” Reuters
Still, CrowdStrike fans have a clear risk to watch: pricey tech stocks like this can stay out of favor, solid fundamentals or not. “People are getting concerned about lofty valuations,” said Thomas Plumb, chief executive and portfolio manager at Plumb Funds. Reuters
CrowdStrike reports earnings on March 3, and analysts are looking for $0.74 a share, Public data shows. Investors are keyed in on what management says about ARR and free cash flow margins, plus any hints of a rebound in large-scale security deals.
