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CrowdStrike: CrowdStrike's Q3 2026 Earnings: A Record Quarter Driven by AI and Cybersecurity Demand

CrowdStrike Holdings, Inc. reported an exceptional third quarter, with revenue growing 22% year-over-year to $1.23 billion, and subscription revenue increasing 21% to $1.17 billion. The company's non-GAAP operating income was a record $264.6 million, with an operating margin of 21%. Earnings per share (EPS) came in at $0.96, beating estimates of $0.939. The strong financial performance was driven by a robust demand environment, with net new ARR growth accelerating to 73% year-over-year, and ending ARR reaching $4.92 billion, up 23% from the previous year.

CRWD

USD 513.12

-2.11%

A-Score: 4.8/10

Publication date: December 2, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Record Net New ARR: Generated $265M net new ARR, up 73% YoY, surpassing expectations by over 10% with ending ARR reaching $4.92B (+23% YoY).
  • Strong Cash Flow & Profitability: Achieved $296M free cash flow (24% of revenue) and $265M operating income (21% of revenue), both all-time highs.
  • Strategic Partnerships: Expanded AWS collaboration, enabling Falcon NextGen SIEM for millions of AWS customers, and secured an 8-figure deal with a leading Neo cloud partner.
  • Product Growth Drivers: Falcon Shield delivered 50% sequential ARR growth, while Identity (PAM) and AI-driven endpoint solutions accelerated adoption amid legacy AV displacement.
  • Revenue & Guidance: Q3 revenue hit $1.23B (+22% YoY), with FY2026 revenue guidance of $4.797B–$4.807B (21–22% growth), reflecting robust demand and pipeline.

Growth Drivers

The growth is driven by market forces such as AI transformations, expanding attack surfaces, and the need for a single platform solution. CrowdStrike is well-positioned as the operating system of cybersecurity for the Agentic era, with its single console, single data back end, and single sensor, AgenTeq Hyperscale platform. The company has made significant partnerships, including an expanded partnership with AWS, making Falcon NextGen SIEM available to millions of AWS customers.

Partnerships and New Deals

CrowdStrike won large deals, including a 7-figure expansion deal with a Fortune 500 logistics company and an 8-figure transaction with a leading Neo cloud. The partnership with AWS continues to grow, with CrowdStrike announced as AWS's global security partner of the year and AWS's global marketplace partner of the year.

Valuation Metrics

With a P/S Ratio of 28.61, the market is pricing in high growth expectations for CrowdStrike. The EV/EBITDA ratio is negative due to the company's negative EBITDA, but the P/E Ratio is also negative, indicating that the market is expecting future growth. Analysts estimate next year's revenue growth at 22.2%, which is slightly higher than the company's guidance. Given the high valuation multiples, it's essential to monitor the company's ability to deliver on its growth promises.

AI and Identity Business

The company believes AI represents its largest opportunity and demand driver yet, and is using AI to revolutionize cybersecurity. The identity business has seen significant growth, with the launch of PAM and Falcon Shield offerings. Falcon Shield had a record net new ARR quarter, growing nearly 50% sequentially.

Future Outlook

For Q4, the company expects total revenue to be in the range of $1.29 to $1.3 billion, reflecting a year-over-year growth rate of 22 to 23%. For the full fiscal year of 2026, the company expects total revenue to be in the range of $4.797 to $4.807 billion, reflecting a growth rate of 21 to 22% over the prior fiscal year.

CrowdStrike's A-Score