CrowdStrike's Q2 Earnings Exceed Expectations Amid Cybersecurity Boom

CrowdStrike reported Q2 revenue of $1.168 bln, beating expectations, with total ARR rising 20% YoY to $4.66 bln. The company expects NNARR to grow 40% YoY in the back half of FY26. Analysts have cut their price targets but maintained their Buy ratings. Shares of CrowdStrike climbed after the earnings release.

CrowdStrike Holdings Inc. (NASDAQ: CRWD) delivered robust financial results for the second quarter of fiscal 2026, with revenue climbing to $1.168 billion, surpassing analyst expectations [1]. The company's total annual recurring revenue (ARR) surged 20% year-over-year (YoY) to $4.66 billion, indicating strong growth momentum. Notably, CrowdStrike expects its net new annual recurring revenue (NNARR) to accelerate by 40% YoY in the second half of fiscal 2026 [1].

The earnings report was well-received by investors, with CrowdStrike's stock price climbing after the announcement. However, analysts have adjusted their price targets following the results. Goldman Sachs, for instance, reduced its price target to $492.00 from $530.00, while maintaining a Buy rating [2]. Other analysts have also revised their price targets, but most have retained their positive ratings on the company's shares.

CrowdStrike's strong performance can be attributed to its platform adoption strategy and the Flex licensing model. The company reported record Q2 net new ARR of $221 million, bringing total ending ARR to $4.66 billion. Platform components, such as Cloud Security, Next-Gen Identity, and LogScale Next-Gen SIEM, experienced significant growth, with combined ending ARR exceeding $1.56 billion and growing over 40% YoY [1].

The company's strategic partnership with Amazon Web Services (AWS) is also expected to drive growth, with the launch of new services in the AWS Marketplace [3]. CrowdStrike's platform strategy and robust demand for its cybersecurity products position it well to capitalize on the expanding cybersecurity market opportunity.

Despite the positive earnings report, concerns remain around high valuation and softer sales growth in the second half of the fiscal year. Analysts remain cautiously optimistic, with a Moderate Buy consensus rating and an average stock price target of $497.15, implying an 18.21% upside risk [3].

References:
[1] https://www.investing.com/news/company-news/crowdstrike-q2-fy2026-slides-record-arr-and-platform-growth-fuel-21-revenue-increase-93CH-4213362
[2] https://www.investing.com/news/analyst-ratings/crowdstrike-stock-price-target-lowered-to-492-by-goldman-sachs-93CH-4214290
[3] https://www.ainvest.com/news/crowdstrike-earnings-q2-2026-buy-sell-august-27-announcement-2508/