CrowdStrike achieves record net new ARR in Q2 FY2026, posts strong growth and expands platform leadership

Overview

CrowdStrike Holdings, Inc. reported strong second-quarter fiscal 2026 results, highlighted by record net new annual recurring revenue (ARR), solid subscription momentum, and robust cash generation. The company underscored its leadership in cybersecurity consolidation, rapid adoption of its Falcon platform, and strategic AI-driven product innovation.

“With reacceleration a quarter ahead of our expectations, CrowdStrike delivered an exceptional Q2. Record Q2 net new ARR of $221 million, over 1,000 Flex customers, and more than 100 re-flexes highlight CrowdStrike as the leader in cybersecurity consolidation. As AI transforms the enterprise, CrowdStrike enables organizations to confidently embrace their AI future from development to deployment, from cloud to endpoint, and from human to agent”, said George Kurtz, Founder and CEO.

Q2 FY2026 vs. Q2 FY2025:

Total revenue rose to $1.17bn (+21% YoY), with subscription revenue up to $1.10bn (+20% YoY), driven by demand for Falcon modules and platform adoption.
ARR grew to $4.66bn (+20% YoY), with a record $221m in net new ARR added during the quarter.
GAAP subscription gross margin was 77% versus 78% last year, while non-GAAP subscription gross margin was 80% versus 81%, reflecting modest cost pressures.
GAAP loss from operations was $113m (compared to income of $14m a year ago), impacted by higher stock-based compensation and strategic charges. Non-GAAP income from operations hit a record $255m (+6% YoY).
GAAP net loss attributable to CrowdStrike was $77.7m (versus GAAP net income of $47.0m last year), while non-GAAP net income reached a record $237m (+7% YoY).
GAAP diluted EPS was a loss of $0.31 (compared to income of $0.19 last year), while non-GAAP diluted EPS was a record $0.93, up from $0.88.
Operating cash flow reached a record $333m (up from $327m a year earlier), and free cash flow hit $284m (compared to $272m).
Cash and equivalents grew to a record $4.97bn, providing strong balance sheet flexibility.
Module adoption rates reached 48% (six or more modules), 33% (seven or more), and 23% (eight or more), showing continued platform expansion.
The company announced acquisition of Onum Technology, strengthening telemetry and data pipeline capabilities.
Also, CrowdStrike recognized as a Leader in Gartner Magic Quadrant for Endpoint Protection for the sixth consecutive year, and earned top placements in multiple IDC and GigaOm assessments.
The company launched Falcon Next-Gen Identity Security and Falcon Signal AI-powered detection, expanding leadership in protecting both human and AI identities.
CrowdStrike expanded partnerships with AWS, NVIDIA, and OpenAI to bring GenAI security, cloud-native protection, and AI governance solutions to customers.

For Q3 FY2026, CrowdStrike expects revenue of $1.208bn-$1.218bn, non-GAAP operating income of $256m-$262m, and non-GAAP EPS of $0.93-$0.95. For the full year FY2026, guidance calls for revenue of $4.75bn-$4.81bn, non-GAAP operating income of $1.00bn-$1.04bn, and non-GAAP EPS of $3.60-$3.72. Management emphasized confidence in sustained ARR reacceleration, platform adoption, and AI-powered product leadership as key growth drivers through the back half of FY2026.

Following its earnings release, CrowdStrike initially surged more than +4.5%, but that entire advance was nearly erased in the final trading session of the week, with the stock falling -4.1%. Despite reporting results broadly in line with analyst expectations, price action remains caught between the two key moving averages: the 50-day SMA ($460.73) above and the 200-day SMA ($408.93) below. At this stage, the 200-day SMA is acting more like a support zone, while the 50-day SMA continues to act as resistance, capping upside momentum. The RSI sits at 43.37, in neutral territory, suggesting neither oversold nor overbought conditions. Year-to-date, CrowdStrike remains solidly positive, up +22%, though a breakout above the 50-day SMA would be needed to reinvigorate bullish momentum in the near term.