CrowdStrike 2026 Q3 Earnings Net Loss Widens 102.1% Despite Record Revenue Growth

CrowdStrike Holdings (CRWD) reported mixed results for Q3 2026, with revenue exceeding expectations but net losses deepening. The company guided to Q4 revenue of $1.29–$1.30 billion and non-GAAP net income of $1.09–$1.11 per share, reflecting confidence in sustained growth despite recent profitability challenges.

Revenue

CrowdStrike’s total revenue surged 22.2% year-over-year to $1.23 billion, driven by robust performance across its core segments. Subscription revenue, the company’s primary revenue stream, reached $1.17 billion, reflecting a 21% year-over-year increase. Professional services contributed $65.54 million, rounding out the total revenue figure. The cybersecurity leader attributed this growth to expanding demand for its AI-integrated security solutions and the adoption of its Falcon Flex subscription model.

Earnings/Net Income

The company’s financial health deteriorated in Q3 2026, with net losses widening to $33.99 million (a 102.1% increase from Q3 2025) and an adjusted EPS loss of $0.14 per share, doubling the prior-year period’s deficit. The EPS performance underscores the pressure of scaling operations amid aggressive R&D and market expansion.

Price Action

Shares of CRWD edged up 0.60% in the latest trading day and 1.92% over the past week, though they declined 4.11% month-to-date, reflecting mixed investor sentiment.

Post-Earnings Price Action Review

The strategy of buying CRWD following earnings beats and holding for 30 days yielded a 40.96% return, outperforming the 50.73% benchmark. However, the strategy’s excess return of -9.78% and a CAGR of 8.45% highlighted its underperformance. While the approach avoided significant drawdowns (0.00% maximum), its Sharpe ratio of 0.16 and volatility of 54.27% indicated a high-risk profile.

CEO Commentary

CEO George Kurtz emphasized record Q3 performance, including 73% year-over-year net new ARR growth ($265 million) and a 23% increase in ending ARR to $4.92 billion. He positioned CrowdStrike as the “operating system of cybersecurity” for the AI era, leveraging single-platform integration to address AI-driven threats. Strategic priorities include expanding Falcon Flex (tripled ARR YoY), deepening partnerships (AWS, Kroll), and acquiring companies like Onum and Pangea.

Guidance

CFO Burt Podbere outlined Q4 2026 revenue guidance of $1.29–$1.30 billion (22–23% YoY growth) and non-GAAP net income of $282–$287 million ($1.09–$1.11 diluted EPS). For full-year 2026, the company projects revenue of $4.797–$4.807 billion (21–22% YoY growth) and non-GAAP net income of $950–$954 million ($3.70–$3.72 diluted EPS).

Additional News

CrowdStrike announced a $1.35 billion Flex ARR base, a 200% year-over-year increase, and expanded its partnership with AWS to integrate Falcon Next-Gen SIEM. Shelton Capital Management increased its stake in CRWD to $19.43 million, reflecting institutional confidence. Analysts upgraded price targets, with Stephens raising its objective to $590 and DA Davidson to $580, citing AI-driven demand and platform consolidation.