CrowdStrike Just Announced a 4-for-1 Stock Split and Robust Results. Is the Stock a Buy?

There's no denying the ongoing threat of cybersecurity attacks. The global average cost of a data breach in 2025 was $4.44 million, according to a report by IBM, and the threat grows with each passing year. Add to that the threat of hackers deploying artificial intelligence (AI) to gain access, and the stakes have never been higher. Cybersecurity has become a crucial consideration for every business -- and CrowdStrike Holdings (NASDAQ: CRWD) is one of the undisputed leaders in the field.

The company's track record of consistent execution and strong business performance has fueled an impressive ascent. CrowdStrike stock has gained 394% over the past three years (as of this writing), driven by strong revenue and profit growth, thanks to growing demand for its cybersecurity solutions. In fact, since CrowdStrike's initial public offering (IPO) in mid-2019, the stock has soared from a debut price of $34 to more than $747, representing gains of 2,097%.

On Wednesday, in conjunction with its quarterly financial report, CrowdStrike announced plans for its first-ever stock split. This revelation has prompted investors to take a fresh look at the stock. Let's take a look to see what it means for investors.

Image source: Getty Images.

The fine print

CrowdStrike announced that its board of directors had approved a 4-for-1 forward stock split, to be effected as a stock dividend -- meaning it doesn't require shareholder approval.

Stockholders of record as of June 25, 2026, will receive three additional shares of stock for each share they own after the market close on Wednesday, July 1. The stock is expected to begin trading on a split-adjusted basis on July 2.

CrowdStrike shareholders won't need to take any further action to receive the additional shares. Investment banks and brokerage firms will handle the details behind the scenes, and the additional stock will be added to investor accounts. The timing can vary from brokerage to brokerage, so the newly issued shares may not appear immediately on July 2. Rest assured, the additional shares will appear in due course.

The math is relatively simple. For each share of CrowdStrike stock a shareholder owns -- currently trading for roughly $748 per share (as of this writing) -- post-split, investors will hold 4 shares worth $187 each (4 x $187 = $748).

Is CrowdStrike stock a buy?

While the stock split alone isn't reason enough to buy CrowdStrike, there are other reasons to buy the cybersecurity expert. The company's recent financial report backs up that contention.

In its fiscal 2027 first quarter (ended April 30), CrowdStrike reported revenue that climbed 26% year over year to $1.39 billion, fueled by record annual recurring revenue (ARR) that grew 24% to $5.5 billion. This drove adjusted earnings per share (EPS) up 51% to $1.10. Analysts' consensus estimates called for revenue of $1.36 billion and adjusted EPS of $1.07, so CrowdStrike beat on both counts.

Beyond the financial results, CrowdStrike's bona fides are well documented. AI start-up Anthropic recently developed Claude Mythos Preview, a frontier AI model that discovered thousands of exploits hackers could use to gain access to critical systems -- including "every major operating system and web browser." The company formed a coalition of big tech companies to fix these loopholes, and CrowdStrike was one of just two cybersecurity leaders initially invited to participate.

If you have any doubts as to CrowdStrike's pedigree, consider this. The company was rated as a leader in Gartner's 2026 Magic Quadrant for endpoint protection, marking the seventh consecutive appearance.

Earlier this year, Forrester released a Total Economic Impact study that revealed that CrowdStrike customers achieved a 273% return on investment by "reducing breach risk and simplifying security operations."

Taken together, the company's long track record of execution, impressive share price gains, and industry accolades make CrowdStrike stock a winning investment.

There is the matter of the stock's valuation to consider, which will be off-putting to some investors. The surging price has led to a commensurate increase in its valuation. CrowdStrike is currently selling for 154 times forward earnings -- which is by no means cheap. However, the stock has soared 394% over the past three years, more than five times the 76% return of the S&P 500 during the same period, illustrating why it's worthy of a premium valuation.

The company's consistent track record makes it a great candidate for dollar-cost averaging, a strategy that lets you buy fewer shares when the price is higher and more when it's lower.

If you still think that CrowdStrike is too pricey right now, it certainly deserves a place on your watch list.

Danny Vena, CPA has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike and International Business Machines. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.