CrowdStrike Raises Margin Targets. Here’s What Wall Street Thinks.

CrowdStrike Holdings raised its targets for subscription gross margins and operating margins, leaving Wall Street optimistic about the security software company.

At a briefing at Fal.Con, CrowdStrike (ticker: CRWD) said it was raising its new target model of subscription gross margin to 82% to 85% of revenue, up 400 basis points from its previous target, and boosting its operating margin target to 28% to 32%, up 900 basis points. The company said the timeframe for meeting those targets was three to five years.