CrowdStrike (CRWD +3.34%) is one of the top cybersecurity companies in the world. It pioneered AI-native cybersecurity solutions with the release of its Falcon platform in 2011, and since then, it has expanded its offerings to become somewhat of a one-stop shop for cybersecurity.
Admittedly, CrowdStrike stumbled last July when it sent out a faulty software update that caused the largest IT outage in history. That's not something any company wants on its resume, but it doesn't take away from the core value CrowdStrike provides.
Despite the questions surrounding CrowdStrike after the IT outage -- and the 32% drop the stock has experienced since hitting an all-time high in February -- it's still one of the best cybersecurity (and tech in general) investments someone can make for the long term. Let's take a look at the three main reasons why.
NASDAQ: CRWD
Key Data Points
1. The cybersecurity market is still in its early stages
The world is becoming more digitally connected every day. Unfortunately, the more these connections grow, the more opportunities there will be for cyber attacks. That's not so great for the victims of these attacks, but it also makes the protection offered by cybersecurity companies like CrowdStrike increasingly valuable.
A 2022 study from consulting firm McKinsey & Company predicted that the total addressable market for cybersecurity could reach $1.5 trillion to $2.0 trillion. At the time of the study's release, only about 10% of that market had been tapped into.
Of course, this is just one company's estimate, but the larger point remains: The cybersecurity world is still in its relatively early stages, and there's a lot more growth on the horizon.
CrowdStrike estimates its total addressable market (TAM) will reach $116 billion in 2025. By 2029, this number could jump to $250 billion. That's a 116% increase in just four years.
2. Customers are embracing the CrowdStrike ecosystem
CrowdStrike has a subscription-based business model where customers purchase individual cybersecurity solutions called modules. For example, a company may only need endpoint protection, which would be one module. Another company may need identity protection and cloud security, which would be two modules.
Below, you can see the share of of CrowdStrike customers using at least five of its modules.
| Number of Modules Used By Customers | Percentage of CrowdStrike Customers |
|---|---|
| 5+ | 67% |
| 6+ | 48% |
| 7+ | 32% |
| 8+ | 21% |
Data source: CrowdStrike Q4 2025 earnings presentation.
The company has done a great job of getting its customers to adopt multiple modules. And the more modules customers use, the more costly and complex it becomes for them to switch providers. That's a key ingredient for customer retention and predictable revenue.
At the end of CrowdStrike's fiscal 2025 fourth quarter (ended Jan. 31), its net retention rate was 112%, meaning existing customers spent 12% more with the company than they did a year ago. That's down from the 119% net retention rate it reported in the fiscal 2025 first quarter, but it's a win for the company considering the PR disaster it faced with the July IT outage.
3. CrowdStrike has a lot of financial momentum going
CrowdStrike's financial growth continues to be impressive. Since it has a subscription-based business model, its annual recurring revenue (ARR) figures provide an important measure of future growth potential.
At the end of fiscal 2025, CrowdStrike's ARR was $4.42 billion, up 23% year over year. During the year, it added $807 million in net new ARR.
Of CrowdStrike's $3.95 billion in revenue in its latest fiscal year, $3.76 billion came from subscriptions. That's a noticeable jump from the $2.87 billion subscription revenue in the previous year. Add in its free cash flow growth, and you've got a company with a lot of financial momentum.
Data by YCharts.
Another win for CrowdStrike has been the number of high-dollar deals it has locked down. In its latest quarter, it closed over 20 deals worth at least $10 million and over 350 deals worth at least $1 million. This deal flow is a testament to CrowdStrike's ability to continue to attract enterprise customers.
If you're looking for longevity, CrowdStrike's market opportunity, sticky ecosystem, and financial momentum make a strong case for it as a long-term buy.
