TLDR
- CrowdStrike sets Q4 revenue guidance at $1.29B-$1.30B, beating $1.22B analyst expectations
- Q3 revenue increased 22% to $1.23B with annual recurring revenue reaching $4.92B
- Company lifts full-year revenue outlook to $4.80B-$4.81B on platform momentum
- Operating cash flow hit record $397.5M while free cash flow reached $295.9M
- AI-driven security tools and platform consolidation fuel customer adoption
CrowdStrike posted quarterly results that exceeded analyst projections and lifted its revenue forecast for the remainder of the year. The cybersecurity company reported third-quarter revenue of $1.23 billion, up 22% from the year-ago period.
The company set fourth-quarter revenue guidance between $1.29 billion and $1.30 billion. Analysts had estimated $1.22 billion for the quarter. Management also raised full-year revenue expectations to a range of $4.80 billion to $4.81 billion.
CrowdStrike Holdings, Inc., CRWD
These results signal continued recovery following last year’s software update issue that caused widespread system disruptions. The incident impacted Windows systems across multiple industries including healthcare, finance, and transportation. CrowdStrike has since worked to restore customer confidence while expanding its product lineup.
Subscription Revenue Drives Performance
Annual recurring revenue grew to $4.92 billion for the quarter ended October 31. The company added $265 million in net new ARR during the period. This represents 23% year-over-year growth and marks an acceleration from previous quarters.
Subscription revenue totaled $1.17 billion in the third quarter. Growth came from multiple product categories including endpoint security, cloud operations, identity protection, and SIEM solutions. This balanced performance supports the company’s integrated platform strategy.
CrowdStrike has deployed AI-powered features across its Falcon platform throughout the year. New detection and triage capabilities launched in September aim to help security teams respond faster to threats. The tools address growing demand for automated security operations.
Businesses continue increasing investments in AI-driven cybersecurity as attack methods become more advanced. Organizations need systems that can process threat data and respond in real time. This market trend has created opportunities for companies with mature automation technology.
Cash Position Strengthens
CrowdStrike generated $397.5 million in cash flow from operations during the quarter. Free cash flow came in at $295.9 million, showing improvement from the prior year. The company held $4.80 billion in cash and equivalents at quarter end.
Non-GAAP operating income reached $264.6 million for the period. Subscription gross margin on a non-GAAP basis was 81%, consistent with previous quarters. The company balanced profitability with ongoing investments in platform development.
Partnerships expanded during the quarter as CrowdStrike deepened relationships with cloud providers and infrastructure companies. These collaborations position the platform as a core component of enterprise security architectures. The strategy helps drive adoption among larger organizations.
Management projects net new ARR growth of at least 50% year over year for the second half of fiscal 2026. The company maintained its fiscal 2027 target of 20% net new ARR growth. These forecasts reflect expectations for sustained platform demand.
eToro analyst Farhan Badami commented that the raised outlook demonstrates CrowdStrike is executing on AI opportunities while improving operational efficiency. The company benefits as organizations consolidate security tools and favor unified platforms.
Market consolidation trends continue supporting CrowdStrike’s growth strategy. Enterprises increasingly prefer integrated security systems that reduce vendor complexity and improve visibility across their environments. The company expects this shift to persist as AI creates additional security requirements.
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