TLDR
- CrowdStrike hits $4.92B ARR, showing strong recurring revenue momentum.
- Q3 revenue surges 22% to $1.23B, topping forecasts across all segments.
- Record cash flow fuels optimism as CrowdStrike raises FY2026 outlook.
- Platform growth and AI-driven demand power CrowdStrike’s market gains.
- Partnerships and product innovation cement CrowdStrike’s leadership edge.
CrowdStrike (CRWD) stock moved higher after the company posted strong third quarter results and reported sharp gains in recurring revenue. The trading session closed with a 2.46% increase as the company showed solid operational momentum.
CrowdStrike Holdings, Inc., CRWD
The market reacted to the performance as the company raised its full-year outlook.
Record ARR Drives Momentum
CrowdStrike reported strong annual recurring revenue performance for the quarter ending October 31, 2025. The company increased ARR to $4.92 billion and added $265 million in net new ARR. The growth rate in this segment rose to 23 percent year over year and continued to accelerate.
The company highlighted gains across endpoint security, cloud operations, identity protection, and its SIEM offerings. These segments supported the company’s broader platform approach and strengthened traction with customers. The performance gave the company confidence in the durability of demand.
Partnership activity remained active and supported broader platform expansion throughout the quarter. The company continued to grow collaborations with major cloud, consulting, and infrastructure partners. These agreements reinforced the company’s positioning as a security backbone for modern workloads.
Revenue and Profit Metrics Strengthen
Total revenue reached $1.23 billion and marked a 22% increase from the prior year quarter. Subscription revenue rose to $1.17 billion and maintained consistent growth across core product categories. Both metrics exceeded internal expectations and showed balanced gains.
Gross margin performance held steady as the company reported a GAAP subscription gross margin of 78 percent. The non-GAAP subscription gross margin reached 81 percent and improved one point from the prior year period. This stability helped support operating leverage throughout the quarter.
Operational performance also strengthened as the company reported a non-GAAP operating income of $264.6 million. GAAP operating loss increased slightly due to ongoing investment in product development and platform growth. The company continued to manage spending while expanding security capabilities.
Cash Flow and Outlook Improve
CrowdStrike produced record cash flow from operations of $397.5 million during the quarter. Free cash flow reached $295.9 million and marked a strong improvement from the year prior. The company ended the quarter with $4.80 billion in cash and equivalents.
Management increased full-year guidance for fiscal 2026 due to strong demand for its platform. The company set new expectations for second-half net new ARR growth of at least 50% year over year. It also reaffirmed confidence in delivering 20% net new ARR growth for fiscal 2027.
The company stated that consolidation trends continued to benefit adoption of its unified platform model. Demand remained strong as organizations pursued integrated security systems that reduce complexity. The company expects sustained growth as artificial intelligence drives additional security requirements
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