12 Best Enterprise Software Stocks to Buy Now

6. Crowdstrike Holdings Inc. (NASDAQ:CRWD)

Number of Hedge Fund Holders: 77

Crowdstrike Holdings Inc. (NASDAQ:CRWD) provides global cybersecurity solutions. Its platform provides cloud-delivered protection of endpoints, cloud workloads, identity, and data through a SaaS subscription-based model. It also offers AI-powered workflow automation and GenAI workload services.

The company’s enterprise software segment is centered on its AI-native Falcon platform which is an AI-native Security Operations Center (SOC). This platform has become a crucial component of enterprise cybersecurity strategies. The Falcon Flex subscription model is increasing adoption and driving large multi-year deals. In Q4 2024, Falcon Flex’s deal value improved by over $1 billion and accounted for $2.5 billion. The company’s GenAI security analyst Charlotte AI is also driving tangible AI outcomes by significantly reducing threat response times.

The company’s cloud security business was up 45% year-over-year and ended with an ARR of over $600 million. The identity protection business also grew to exceed $370 million in ending ARR. On March 25, J.P. Morgan analyst Brian Essex reiterated a Buy rating on the company due to this reaccelerated ARR from effective cost containment. Essex anticipates growth in the company’s Cloud and Identity segments due to the adoption of Falcon’s Flex platform. The company is projecting FY26 total revenue to grow by 20% to 22%.

Given the company’s strong position in cloud-native cybersecurity tools, Sands Capital Technology Innovators Fund is optimistic about its future and stated the following regarding CrowdStrike Holdings Inc. (NASDAQ:CRWD) in its Q4 2024 investor letter:

“CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is the market-share leading provider of cloud-native cybersecurity tools. The business was founded in 2011 as an endpoint detection response vendor and disrupted a group of incumbents, often owned by private equity or large conglomerates, that failed to innovate. It has since grown its cloud-native set of endpoint security solutions to include antivirus software, threat detection, and device management and patching tools. We view endpoint security as an attractive market, due to its mission-critical nature, large size, and accelerating growth, enabled by the emergence of modern cloud based solutions. Over our five-year horizon, we expect Crowdstrike to sustain above-average earnings growth as it seeks to displace legacy endpoint security vendors to gain share, expands its product offerings with existing customers, and gains traction in newer and emerging capabilities.”