CrowdStrike vs Palo Alto Networks: Which Cybersecurity Stock Makes More Sense Right Now?

TLDR

• CrowdStrike grew revenue 22% to $4.81 billion in fiscal 2026, with ARR up 24% to $5.25 billion
• Palo Alto Networks generated $9.22 billion in revenue in fiscal 2025, with $1.13 billion net income
• CrowdStrike still runs at a GAAP net loss annually; Palo Alto is the more profitable business today
• Both stocks hold a Moderate Buy consensus on Wall Street from analyst coverage
• CrowdStrike suits growth-focused investors; Palo Alto suits those wanting scale and cash flow

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Two of the biggest names in cybersecurity are reporting strong numbers, but they tell very different stories. CrowdStrike and Palo Alto Networks each have Wall Street’s attention, but investors are weighing them differently depending on what they want from a tech stock.

CrowdStrike Holdings, Inc., CRWD

CrowdStrike is the pure-growth play. It runs a cloud-native model built around endpoint security and subscriptions. Palo Alto Networks is the broader platform, covering firewalls, cloud security, and more, with a much larger revenue base.

CrowdStrike’s Growth Numbers

CrowdStrike posted revenue of $4.81 billion for fiscal 2026, up 22% year over year. Subscription revenue hit $4.56 billion. Ending annual recurring revenue climbed 24% to $5.25 billion.

The company generated $1.61 billion in operating cash flow and $1.24 billion in free cash flow. In the fourth quarter alone, net new ARR reached $330.7 million, a record for the company.

That ARR growth outpacing revenue growth shows customers are deepening their use of the platform over time.

The one weak spot is GAAP earnings. CrowdStrike posted a GAAP net loss of $162.5 million for the full year. That was partly tied to costs from the July 19 incident. The company did post GAAP net income of $38.7 million in the fourth quarter.

Palo Alto’s Scale and Profitability

Palo Alto Networks brought in $9.22 billion in total revenue for fiscal 2025. Of that, $7.42 billion came from subscriptions and support. Net income was $1.13 billion. Free cash flow reached $3.47 billion.

Palo Alto Networks, Inc., PANW

Those numbers make Palo Alto the larger and more profitable business right now.

In its fiscal first-quarter 2026 results, revenue rose 16% to $2.5 billion. Next-Generation Security ARR grew 29% to $5.9 billion. Remaining performance obligation rose 24% to $15.5 billion.

The faster growth in its newer cloud and subscription segments suggests the platform strategy is working.

Palo Alto’s broader model gives it more product depth and a larger installed customer base. The trade-off is that it lacks the clean, single-narrative story that CrowdStrike offers.

Analyst data from MarketBeat shows CrowdStrike holds a Moderate Buy consensus, with 32 Buys, 15 Holds, 1 Sell, and 1 Strong Buy. The average price target sits at $506.26.

Palo Alto Networks also carries a Moderate Buy rating, based on coverage from 45 firms. That includes 34 Buys, 9 Holds, and 2 Strong Buys. The mean one-year price target is $210.19.

Both companies are well-regarded on Wall Street. The difference comes down to what type of cybersecurity exposure an investor is looking for. CrowdStrike for growth, Palo Alto for scale and profitability.

Final Thoughts

Both companies are well-regarded on Wall Street. The difference comes down to what type of cybersecurity exposure an investor is looking for. CrowdStrike suits those chasing growth and ARR momentum. Palo Alto Networks suits those who want a larger, more profitable platform with stronger cash flow. Neither is the wrong choice — they just serve different investment goals.

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