---
title: "CrowdStrike Analyst No Longer Bullish, Citing Lower Security Budgets And Absence Of AI Tailwinds"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/272294803.md"
description: "CrowdStrike Holdings Inc (NASDAQ:CRWD) has been downgraded from Overweight to Sector Weight by KeyBanc Capital Markets analyst Eric Heath, citing lower cybersecurity demand expected in 2026. The analyst noted that security budgets may grow slower than overall IT budgets and that AI has yet to positively impact these budgets. Additionally, CrowdStrike's exposure to U.S. Fed cyber budgets, projected to remain flat in 2026, could pose challenges. Following the downgrade, CRWD shares fell by 1.77% to close at $462.28."
datetime: "2026-01-12T15:34:24.000Z"
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  - [zh-CN](https://longbridge.com/zh-CN/news/272294803.md)
  - [en](https://longbridge.com/en/news/272294803.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/272294803.md)
---

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# CrowdStrike Analyst No Longer Bullish, Citing Lower Security Budgets And Absence Of AI Tailwinds

**CrowdStrike Holdings Inc (NASDAQ:CRWD)** may be impacted by lower cybersecurity demand in 2026, according to KeyBanc Capital Markets.

**The CrowdStrike Holdings** **Analyst:** Analyst Eric Heath downgraded the rating from Overweight to Sector Weight.

**The CrowdStrike Holdings** **Thesis:** The cybersecurity space is yet to witness AI tailwinds, Heath said in the downgrade note.

**Check out other analyst stock ratings**.

The analyst stated that KeyBanc's latest CIO survey data shows:

-   Security has become a priority in companies
-   Growth in security budgets may be lower than the overall IT budgets
-   It is too early for AI to positively impact security budgets
-   The runway for further consolidation may be shortening

CrowdStrike has higher exposure than peers to U.S. Fed cyber budgets, which are likely to be flat in 2026, he added.

"Comps in FY27 get more difficult two years post the outage and after significant Flex adoption in FY26," Heath further wrote.

**CRWD Price Action:** Shares of CrowdStrike Holdings had declined by 1.77% to close at $462.28 on Monday.

_Image: Shutterstock_

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