Moody's Ratings upgraded CrowdStrike Holdings, Inc.’s senior unsecured rating from Baa3 to Baa2 and changed the outlook from positive to stable.
The upgrade reflects CrowdStrike’s strong competitive position in the cybersecurity market and expectations of operating profit growth over the next two to three years.
Moody’s projects subscription‑revenue growth of approximately 23% and operating‑income growth that will outpace revenue over the next 12‑24 months.
CrowdStrike’s annual recurring revenue growth bottomed at 21% in fiscal Q2 2026 (July 2025) after the July 2024 outage, then re‑accelerated, aided by its Falcon Flex licensing model and expanding partner ecosystem.
Credit metrics: gross retention 97‑98%, dollar‑based net retention 115% in fiscal Q4 2026; pro‑forma cash of about $4.2 billion at FY 2026 end after February 2026 acquisitions; outstanding debt $750 million.
Moody’s forecasts free cash flow rising from $1.9 billion in FY 2027 to $2.3 billion in FY 2028.
Moody’s notes rating could be upgraded further if revenue growth and operating margins remain strong and financial policy stays conservative; downgrade risk if growth decelerates materially or margins fall sustained.
