Upside case
Bull case
$12-86.6%
The bull case prices STRC at 0x on FY1 earnings, assuming continued execution and no meaningful deceleration in the core business.
Analysis OverviewHoldUpdated Jun 18, 2026
MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
1
analysts
0 bullish · 0 bearish · 1 covering STRC
Strong Buy
0
Buy
0
Hold
1
Sell
0
Strong Sell
0
Consensus Target
$252
+184.5% vs today
Scenario Range
$6 – $12
Model bear to bull value window
Coverage
1
Published analyst ratings
Valuation Context
1.9x
Forward P/E · Market cap $29.6B
STRC price targets
Three scenarios for where STRC stock could go
Current
~$89
Confidence
38 / 100
Updated
Jun 18, 2026
Where we are now
Current · $89
Bear
$6
Base
$9
Bull
$12
Market caseClosest to today
Base case
$9-89.8%
At 0x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$6-93.6%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push STRC down roughly 94% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock
STRC · NASDAQTechnologySoftware - ApplicationDecember year-end
MicroStrategy is an enterprise analytics and mobility software company that provides business intelligence platforms to help organizations analyze and visualize their data. It generates revenue primarily through software licensing (~60%) and cloud-based subscription services (~40%), supplemented by related consulting and support services. The company's key advantage is its long-standing expertise in enterprise analytics — particularly its HyperIntelligence platform — and its strategic pivot to become a major corporate holder of Bitcoin, which has created significant brand recognition and financial optionality.
Market Cap
$29.6B
Revenue TTM
$490M
Net Income TTM
-$12.4B
Net Margin
-2519.4%
STRC Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
33%Exceptional
12 quarters tracked
Revenue Beat Rate
50%Exceptional
vs consensus estimates
Avg EPS Surprise
+907.6%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q4 2025
Q1 2026
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 1 of 4Q4 2025
EPS
$8.42/$-0.10
Revenue
$129M/$117M
Q1 2026
EPS
$-42.30/$-0.08
Revenue
$123M/$122M
Q1 2026
EPS
$-42.93/$-0.08
Revenue
$123M/$119M
Q2 2026
EPS
$-38.25/$-0.86
Revenue
$124M/$121M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q4 2025 | $8.42/$-0.10 | +8354.9% | $129M/$117M | +10.3% |
| Q1 2026 | $-42.30/$-0.08 | -52777.3% | $123M/$122M | +1.0% |
| Q1 2026 | $-42.93/$-0.08 | -53562.5% | $123M/$119M | +3.2% |
| Q2 2026 | $-38.25/$-0.86 | -4337.4% | $124M/$121M | +2.9% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$506M
+3.2% YoY
FY2
$530M
+4.7% YoY
EPS Outlook
FY1
$0.70
+101.9% YoY
FY2
$0.50
-28.7% YoY
Trailing FCF (TTM)$7.6B
FCF Margin: 1551.2%
Next Earnings
August 5, 2026
Expected EPS
$23.78
Expected Revenue
$123M
STRC beat EPS estimates in 1 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
STRC Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $8M
Product Mix
Latest annual revenue by segment or product family
Product Development Contract Revenue
65.8%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Product Development Contract Revenue is the largest disclosed segment at 65.8% of FY 2024 revenue, with no year-over-year comparison yet.
STRC Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Limited: Expensive versus peers
Fair value est. $10 — implies -88.4% from today's price.
Premium to Fair Value
88.4%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
STRC
-5.8x
vs
S&P 500
24.4x
124% discount
vs Technology Trailing P/E
STRC
-5.8x
vs
Technology
29.0x
120% discount
vs STRC 5Y Avg P/E
Today
-5.8x
vs
5Y Average
—
Benchmark unavailable
Forward PE
1.9x
S&P 500
18.8x
-90%
Technology
22.3x
-92%
5Y Avg
—
—
Trailing PE
-5.8x
S&P 500
24.4x
-124%
Technology
29.0x
-120%
5Y Avg
—
—
PEG Ratio
—
S&P 500
1.66x
—
Technology
1.51x
—
5Y Avg
—
—
EV/EBITDA
—
S&P 500
15.2x
—
Technology
16.6x
—
5Y Avg
—
—
Price/FCF
—
S&P 500
20.7x
—
Technology
19.2x
—
5Y Avg
—
—
Price/Sales
62.0x
S&P 500
3.1x
+1905%
Technology
2.4x
+2442%
5Y Avg
—
—
Dividend Yield
1.46%
S&P 500
1.91%
-23%
Technology
1.11%
+32%
5Y Avg
1.31%
+12%
| Metric | STRC | S&P 500 | Technology | 5Y Avg STRC |
|---|---|---|---|---|
| Forward PE | 1.9x | 18.8x-90% | 22.3x-92% | — |
| Trailing PE | -5.8x | 24.4x-124% | 29.0x-120% | — |
| PEG Ratio | — | 1.66x | 1.51x | — |
| EV/EBITDA | — | 15.2x | 16.6x | — |
| Price/FCF | — | 20.7x | 19.2x | — |
| Price/Sales | 62.0x | 3.1x+1905% | 2.4x+2442% | — |
| Dividend Yield | 1.46% | 1.91% | 1.11% | 1.31% |
STRC trades above S&P 500 benchmarks on 1 of 3 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolSTRC Financial Health
Verdict
Stressed
STRC generates $7.6B in free cash flow at a 1551.2% margin — returns 1.5% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$490M
Revenue Growth
TTM vs prior year
+6.8%
Gross Margin
Gross profit as a share of revenue
68.1%
Operating Margin
Operating income divided by revenue
94.2%
Net Margin
Net income divided by revenue
-2519.4%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$-37.01
Free Cash Flow (TTM)
Cash generation after capex
$7.6B
FCF Margin
FCF as share of revenue — the primary cash quality signal
1551.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
-9.9%
ROA
Return on assets, trailing twelve months
-19.4%
Cash & Equivalents
Liquid assets on the balance sheet
$2.3B
Net Debt
Total debt minus cash
$6.0B
Debt Serviceability
Net debt as a multiple of annual free cash flow
0.8× FCF
~0.8 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
-24.1%
* Elevated by buyback-compressed equity — compare ROIC (-9.9%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.5%
Dividend
1.5%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$1.30
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Current diluted share count
334M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageSTRC Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Dividend rate volatility
The variable dividend rate of STRC is adjusted monthly, which introduces uncertainty and potential income instability for investors.
Medium
Corporate rebranding risk
The company's name change from MicroStrategy to Strategy Inc may create brand confusion and disrupt investor confidence.
High Risk
Market condition dependency
The issuance and pricing of STRC are subject to market conditions, which could adversely affect its performance and investor returns.
Medium
Preferred stock complexity
The perpetual stretch preferred stock structure with variable dividends and semi-monthly payments adds complexity, potentially deterring some investors.
Lower
Business model shift
The company's pivot from business intelligence to a broader 'Strategy' focus may introduce execution risks and operational challenges.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why STRC Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Bitcoin Treasury Leadership
Strategy is positioned as the world’s first and largest Bitcoin Treasury Company, leveraging its significant Bitcoin holdings as a core asset.
Successful Capital Raise
The company raised $2.521 billion through its STRC Stock IPO, demonstrating strong market demand and financial flexibility.
Strategic Rebranding
The rebrand from MicroStrategy to Strategy Inc. aligns the company with its focus on Bitcoin and treasury operations, enhancing its market positioning.
Preferred Stock Offering
The issuance of Variable Rate Series A Perpetual Stretch Preferred Stock provides a new investment vehicle tied to the company’s growth strategy.
Underwriting by Morgan Stanley
The involvement of a major investment bank like Morgan Stanley in the IPO underscores credibility and institutional support for the offering.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
STRC Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$88.59
52W Range Position
34%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$82.53
+7.3% from the low
52-Week High
$100.42
-11.8% from the high
1 Month
-10.16%
3 Month
-11.03%
YTD
-11.1%
1 Year
-0.0%
3Y CAGR
-0.0%
5Y CAGR
-0.0%
10Y CAGR
-0.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
STRC vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
1.9x
vs 2.4x median
-21% below peer median
Revenue Growth
+3.2%
vs +12.4% median
-74% below peer median
Net Margin
-2519.4%
vs -234.8% median
-973% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
STR STRC MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock | $29.6B | 1.9x | +3.2% | -2519.4% | Hold | +184.5% |
MST MSTR Strategy Inc | $37.6B | 2.4x | +3.1% | -2519.4% | Buy | +123.6% |
MAR MARA Marathon Digital Holdings, Inc. | $5.4B | — | +12.4% | -234.8% | Buy | -12.1% |
RIO RIOT Riot Platforms, Inc. | $10.7B | — | +10.4% | -132.8% | Buy | -3.0% |
CLS CLSK CleanSpark, Inc. | $4.4B | — | +13.9% | -67.7% | Buy | +9.6% |
CIF CIFR Cipher Mining Inc. | $11.8B | — | +19.8% | -513.0% | Buy | +9.3% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
STRC Dividend and Capital Return
STRC returns 1.5% total yield, led by a 1.46% dividend.
Dividend UnknownFCF Well Covered
Total Shareholder Yield
1.5%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
1.46%
Payout Ratio
—
How STRC Splits Its Return
Div 1.46%
Dividend 1.46%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.30
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
Monthly
12 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
334M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $6.17 | — | — | — |
| 2025 | $4.26 | — | 0.0% | 1.3% |
FAQ
7 questionsSTRC Investor Questions
Common questions answered from live analyst data and company financials.
01Is MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) stock a buy or sell in 2026?
MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) is rated Hold by Wall Street analysts as of 2026. Of 1 analysts covering the stock, 0 rate it Buy or Strong Buy, 1 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $252, implying +184.5% from the current price of $89. The bear case scenario is $6 and the bull case is $12.
02What is the STRC stock price target for 2026?
The Wall Street consensus price target for STRC is $252 based on 1 analyst estimates. The high-end target is $252 (+184.5% from today), and the low-end target is $252 (+184.5%). The base case model target is $9.
03Is MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) stock overvalued in 2026?
STRC trades at 1.9x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals limited: expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) stock in 2026?
The primary risks for STRC in 2026 are: (1) Dividend rate volatility — The variable dividend rate of STRC is adjusted monthly, which introduces uncertainty and potential income instability for investors. (2) Market condition dependency — The issuance and pricing of STRC are subject to market conditions, which could adversely affect its performance and investor returns. (3) Corporate rebranding risk — The company's name change from MicroStrategy to Strategy Inc may create brand confusion and disrupt investor confidence. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock's revenue and earnings forecast?
Analyst consensus estimates STRC will report consensus revenue of $506M (+3.2% year-over-year) and EPS of $0.70 (+101.9% year-over-year) for the upcoming fiscal year. The following year, analysts project $530M in revenue.
06When does MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) report its next earnings?
MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock is expected to report its next earnings on approximately 2026-08-05. Consensus expects EPS of $23.78 and revenue of $123M. Over recent quarters, STRC has beaten EPS estimates 33% of the time.
07How much free cash flow does MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock generate?
MicroStrategy Incorporated Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) generated $7.6B in free cash flow over the trailing twelve months — a free cash flow margin of 1551.2%. STRC returns capital to shareholders through dividends (1.5% yield) and share repurchases ($0 TTM).