CrowdStrike vs. Dell Technologies: Which Technology Stock Is a Better Buy in 2026?

Are you looking for rapid growth in cybersecurity or a steady giant in infrastructure? Deciding between CrowdStrike (NASDAQ:CRWD) and Dell Technologies (NYSE:DELL) requires weighing cloud-native software against global hardware leadership.

CrowdStrike focuses on protecting digital endpoints and cloud workloads through its artificial intelligence platform. Dell provides the physical backbone of modern computing, from servers and storage to personal laptops. While both benefit from the expansion of data centers, they offer vastly different risk and reward profiles for your portfolio.

The case for CrowdStrike

CrowdStrike remains a prominent name among tech stocks due to its Falcon platform, which unifies security across endpoints, identities, and cloud workloads. The company sells its software through a direct sales force and a robust network of channel partners, catering to governments and large enterprises. Recent strategic moves include an expanded partnership with Schwarz Digits and a new agreement with Grant Thornton Advisors, which has standardized its managed security services on the Falcon platform.

In FY 2026, revenue reached $4.8 billion, representing growth of roughly 22% compared to the previous year. This continues a steady upward trend from $3.1 billion in FY 2024, although the company reported a net loss of nearly $162.5 million for FY 2026, while it turned a profit in 2024.

As of its January 2026 balance sheet, the debt-to-equity ratio is 0.2x. This ratio compares a company's total debt to its shareholders’ equity, with a lower ratio typically indicating a stronger position. Free cash flow is approximately $1.2 billion, though stock-based compensation (SBC) accounted for roughly 68.0% of operating cash flow, inflating reported cash generation because SBC is a non-cash expense added back in the cash flow statement.

The case for Dell Technologies

Dell Technologies operates a vast technology empire that designs and manufactures servers, storage solutions, and client devices like laptops. The company serves a global customer base in over 170 countries, utilizing a direct sales force and a network of distributors. Recent successes include securing a $9.7 billion Pentagon contract, further cementing its role as a critical provider for large-scale governmental and enterprise infrastructure projects.

In FY 2026, revenue reached nearly $113.5 billion, representing revenue growth of roughly 19% year over year. The company delivered net income of close to $5.9 billion. This performance shows a significant improvement in both total revenue and profitability compared to FY 2024, when the company generated $96 billion in revenue and $4.6 billion in net income.

The business has net debt (debt minus cash on hand) of about $20 billion. Free cash flow, which is the cash remaining after a company pays for its operations and capital expenditures, is nearly $8.6 billion, providing the company with significant capital for debt service and shareholder returns.

Risk profile comparison

CrowdStrike faces significant scrutiny following the July 19 incident, a 2024 event in which there was a massive IT outage caused by the Falcon server, which continues to impact its reputation and customer relations. The company is currently managing multiple legal proceedings, including securities and derivative litigation, which could lead to substantial costs. Furthermore, competition from Microsoft (NASDAQ:MSFT) and other legacy antivirus vendors remains intense, creating constant pressure on pricing and market share. Any future defects or vulnerabilities in the Falcon platform could further damage the trust the company has built with its enterprise clients.

Dell Technologies carries a heavy financial burden with approximately $31.5 billion in total debt, which may limit its flexibility for future acquisitions or capital spending. The company also faces intense competition in the server and cloud markets from Amazon.com Inc (NASDAQ:AMZN) and other branded hardware providers. Supply chain disruptions and reliance on limited-source suppliers for critical components also pose persistent threats to its manufacturing capacity. Additionally, XTX Markets has filed a $70 million lawsuit against the company, highlighting the legal and pricing risks inherent in large-scale data center contracts.

Valuation comparison

Dell appears significantly cheaper on a valuation basis, whereas CrowdStrike demands a steep premium for its cloud-based revenue growth.

Sector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

CrowdStrike software remains competitive with the best choices on the market, and the fact that it was chosen to test both Anthropic’s Mythos model and OpenAI’s Daybreak attests to its respect. CrowdStrike also seems to have worked through investor fears that AI would essentially replace cybersecurity like CrowdStrike as models become super advanced and do things themselves. Investors seem to have come to believe there is a place for CrowdStrike in an AI future

For fiscal 2026, revenue is expected to grow about 24% to $5.59 billion, coming with a swing to net income of $175 million.

Despite its already massive size, Dell’s sales are seen rising a screaming 51% to $171.3 billion in fiscal 2027 with more than $11 billion in both net income and free cash flow. While Dell still sells the laptops that originated the business, the story is all about AI. The business is selling AI-optimized servers hand over fist, with management expecting more than $60 billion in AI server sales in FY 2027, almost triple the prior year.

CrowdStrike has the reputation and growth to make it an intriguing stock, but Dell’s AI-driven growth is too strong to ignore, especially at a very affordable forward P/E and P/S ratio.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, CrowdStrike, and Microsoft. The Motley Fool has a disclosure policy.