Can Next-Generation SIEM Become CrowdStrike's Biggest Growth Engine?

CrowdStrike (CRWD) is seeing strong momentum in its Next-Generation (Next-Gen) Security Information and Event Management (SIEM) as part of its mission to protect enterprises against evolving cyber threats. In the third quarter of fiscal 2026, Next-Gen SIEM posted record net new ARR , showing that more customers are choosing it over older SIEM tools that are costly and slow. Management said companies want faster detection, easier workflows, and lower operating costs, which is driving interest in CrowdStrike’s unified SIEM model.

CrowdStrike also reported several large customer wins. A major European bank replaced its legacy SIEM and streaming pipeline with Falcon Next-Gen SIEM, Onum, and Charlotte AI in a large eight-figure deal. The company also highlighted multiple cases where customers moved off older SIEM systems, including Splunk, because Falcon can handle endpoint, cloud, identity, and third-party data in one place.

A key boost came from CrowdStrike’s expanded partnership with Amazon Web Services (“AWS”). Millions of AWS users can now access Falcon Next-Gen SIEM directly inside AWS Security Hub. This gives CrowdStrike a much wider pool of potential customers and may help convert free usage into Flex subscriptions over time.

CrowdStrike’s Next-Gen SIEM is growing quickly and is becoming one of the strongest parts of its platform. The main question is whether this rapid growth can continue. For now, strong customer demand, deeper AWS integration, and growing replacement activity suggest that Next-Gen SIEM could remain one of CrowdStrike’s most important growth drivers in the coming years. The Zacks Consensus Estimate for both fiscal 2026 and 2027 revenues indicates a year-over-year increase of approximately 21%.

How Competitors Fare Against CRWD

Competitors like Palo Alto Networks (PANW) and SentinelOne (S) are also gaining ground through platform expansion and AI innovation.

In the first quarter of fiscal 2026, Palo Alto Networks saw robust growth in its Next-Gen Security Annual Recurring Revenues (ARR), which increased 29% year over year. The growth was driven by increased customer adoption of PANW’s advanced cybersecurity offerings, including its AI-driven XSIAM platform, SASE and software firewalls.

Though comparatively a small competitor, SentinelOne posted third-quarter fiscal 2026 year-over-year growth of 23% in its ARR. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.

CRWD’s Price Performance, Valuation and Estimates

Shares of CrowdStrike have gained 51.4% year to date compared with the Zacks Security industry’s growth of 15.9%.

CRWD YTD Price Return Performance

Image Source: Zacks Investment Research

From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 22.76, way higher than the industry’s average of 12.36.

CRWD Forward 12-Month P/S Ratio

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CrowdStrike’s fiscal 2026 earnings implies a year-over-year decline of 5.6%, while the same for fiscal 2027 earnings indicates year-over-year growth of 28.8%. The estimates for fiscal 2026 and 2027 have been revised upward by 4 cents and 3 cents, respectively, over the past seven days.

Image Source: Zacks Investment Research

CrowdStrike currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Source Zacks-com