CrowdStrike Holdings (CRWD) is set to deliver positive fiscal Q4 results, with signs of improving bookings and potential annual recurring revenue acceleration over the next 12 to 18 months, Morgan Stanley said in an earnings preview Wednesday.

The company is expected to release its fiscal Q4 results on March 4.

Morgan Stanley, citing channel checks, noted that customer renewals were pushed to the last minute, leading to a back-end loaded quarter with stronger growth in January.

The investment firm said it sees an upside to the consensus for CrowdStrike's fiscal Q4 annual recurring revenue growth of 22.5%, which implies a 34% decline in net new annual recurring revenue.

For fiscal 2026, the firm expects initial revenue and annual recurring revenue growth guidance of about 20% year over year, roughly in line with consensus, along with a 25% free cash flow margin.

However, Morgan Stanley believes this leaves room for a beat-and-raise scenario throughout the year, as CrowdStrike benefits from platform expansion and a consolidating security market.

Morgan Stanley raised its price target on CrowdStrike Holdings stock to $429, from $390, and maintained its overweight rating.

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