CrowdStrike (NASDAQ: CRWD) and Dell Technologies (NYSE: DELL) both benefit from booming data center demand, but they offer very different investment propositions in 2026.
CrowdStrike anchors its business around the AI-driven Falcon platform, which unifies security across endpoints, cloud workloads, and digital identities for enterprises and governments worldwide.
Dell operates across more than 170 countries, selling servers, storage solutions, and client devices through a direct sales force and a network of global distributors.
CrowdStrike reported FY 2026 revenue of $4.8 billion, representing growth of roughly 22% compared to the prior year, continuing a strong upward trend from $3.1 billion in FY 2024.
Despite that revenue growth, the company posted a net loss of nearly $162.5 million for FY 2026, a reversal from the profit it recorded in FY 2024.
Recent strategic moves for CrowdStrike include an expanded partnership with Schwarz Digits and a new agreement with Grant Thornton Advisors, which standardized its managed security services on the Falcon platform.
Dell posted FY 2026 revenue of nearly $113.5 billion, representing year-over-year growth of roughly 19%, alongside net income of close to $5.9 billion.
The hardware giant secured a $9.7 billion Pentagon contract, cementing its position as a critical provider for large-scale governmental and enterprise infrastructure projects.
Dell’s management expects more than $60 billion in AI server sales in FY 2027, which would represent almost triple the prior year’s AI server revenue.
Dell’s total sales are forecast to rise 51% to $171.3 billion in fiscal 2027, with more than $11 billion projected in both net income and free cash flow.
CrowdStrike faces lingering reputational damage from the July 19 incident in 2024, when a Falcon server update triggered a massive global IT outage that continues to affect customer relations.
The company is also managing multiple legal proceedings, including securities and derivative litigation, while facing intense competition from Microsoft (NASDAQ: MSFT) and legacy antivirus vendors.
CrowdStrike’s forward revenue outlook remains solid, with fiscal 2026 revenue expected to reach $5.59 billion alongside a swing to net income of $175 million.
Dell carries approximately $31.5 billion in total debt and faces competition in the server and cloud markets from Amazon.com (NASDAQ: AMZN), alongside persistent supply chain risks from limited-source suppliers.
XTX Markets has filed a $70 million lawsuit against Dell, highlighting legal and pricing risks that can arise from large-scale data center contracts.
On valuation, Dell trades at a forward P/E of 21.3x and a price-to-sales ratio of 0.2x, making it far cheaper than CrowdStrike’s forward P/E of 166.7x and P/S ratio of 40.5x.
CrowdStrike’s free cash flow stands at approximately $1.2 billion, though stock-based compensation accounted for roughly 68% of operating cash flow, inflating reported cash generation figures.
Dell’s free cash flow of nearly $8.6 billion provides substantial capital for debt servicing and returning value to shareholders through buybacks or dividends.
CrowdStrike has earned credibility in AI circles, having been selected to test both Anthropic’s Mythos model and OpenAI’s Daybreak, signaling strong industry respect for its platform.
Both stocks carry genuine appeal, but Dell’s explosive AI server growth combined with its affordable valuation gives it a clear edge as the stronger buy heading further into 2026.
