CrowdStrike CEO: ARR a Key Indicator of Business Health

CrowdStrike CEO George Kurtz stated that ARR (annual recurring revenue) is a forward-looking indicator of a company's health. He noted that CrowdStrike's technology is sticky, with a 95% chance of renewal if customers use it. This is the first quarter the company has accelerated net new ARR.

CrowdStrike (NASDAQ: CRWD) reported its fiscal second quarter 2026 results on August 27, 2025, delivering record net new Annual Recurring Revenue (ARR) of $221 million (non-GAAP) and total revenue of $1.17 billion, both exceeding guidance (non-GAAP) [1]. The company achieved over 20% year-over-year ending ARR growth to $4.66 billion (non-GAQAP), highlighted a strong reacceleration in customer demand, and announced its intent to acquire Onum to enhance next-gen Security Information and Event Management (SIEM) capabilities.

The net new ARR surged as CRWD exceeded targets, with ARR for next-generation cloud, identity, and SIEM solutions climbing above $1.56 billion (non-GAAP), up more than 40% year over year, contributing to total revenue growth of 21% year over year. Falcon Flex customers surpassed 1,000, and record operating income (non-GAAP) reached $255 million, or 22% of revenue. Earlier ARR guidance had anticipated this level of acceleration in the second half of fiscal 2026, but the company achieved it a quarter ahead of plan [1].

The company completed multiple product launches, reported Charlotte AI SOC adoption rising more than 85% quarter over quarter, and announced an agreement to acquire Onum, whose technology increases customer data control and accelerates SIEM adoption. Next-gen SIEM ARR jumped over 95% year over year to more than $430 million, while partner-sourced business accounted for over 60% of new wins, deepening ecosystem integration [1].

The stock tumbled more than 6% in after-hours trading on Wednesday, despite beating Wall Street estimates for both earnings and revenue in its second quarter. The main reason behind the CrowdStrike earnings disappointment wasn’t the actual results – it was what management said about the next quarter. The company guided for revenue between $1.208 billion and $1.218 billion for the current quarter, which fell short of the $1.228 billion that analysts had been expecting [2].

CrowdStrike CEO George Kurtz stated that ARR is a forward-looking indicator of a company's health. He noted that CrowdStrike's technology is sticky, with a 95% chance of renewal if customers use it. This is the first quarter the company has accelerated net new ARR [1].

References:
[1] https://www.nasdaq.com/articles/crowdstrike-q2-revenue-tops-11-billion
[2] https://cryptorank.io/ru/news/feed/dd547-crowdstrike-crwd-stock-drops-after-q2-beat-but-weak-revenue-outlook