CrowdStrike 2026 Q3 Earnings Revenue Surges 22% Despite Widening Net Loss

CrowdStrike Holdings (CRWD) reported fiscal 2026 Q3 results on Dec 3, 2025, with revenue exceeding expectations by 22.2% year-over-year to $1.23 billion. The company raised full-year revenue guidance, aligning with its strategic focus on AI-driven cybersecurity solutions.

Revenue

CrowdStrike’s total revenue reached $1.23 billion in Q3 2026, driven by robust growth in its subscription segment. Subscription revenue accounted for the lion’s share at $1.17 billion, reflecting a 21.4% year-over-year increase. Professional services revenue also expanded, reaching $65.54 million, up 38.1% from the prior year. The company’s annual recurring revenue (ARR) grew 23% to $4.92 billion, with $265 million in net new ARR added during the quarter.

Earnings/Net Income

The company’s net loss widened to $33.99 million in Q3 2026, a 102.1% increase from $16.82 million in the prior year. Earnings per share (EPS) fell to -$0.14 from -$0.07, reflecting a 100% wider loss. The earnings decline underscores ongoing investment in AI-driven security platforms and strategic acquisitions.

Price Action

CRWD’s stock price climbed 5.26% on the latest trading day, 2.31% over the week, but declined 3.47% month-to-date. The post-earnings price action review highlighted mixed signals: a 43.83% return for a 30-day buy-and-hold strategy post-beat, yet underperformance relative to the 50.28% benchmark return.

The strategy of buying CRWD when earnings beat and holding for 30 days delivered moderate returns but underperformed the benchmark. The strategy achieved a 43.83% return, while the benchmark returned 50.28%, resulting in an excess return of -6.45%. The Sharpe ratio was 0.17, indicating a reasonable risk-adjusted return, but with a maximum drawdown of 0% and a volatility of 54.25%, the strategy had limited downside risk but also missed out on potential gains.

CEO Commentary

CEO George Kurtz emphasized CrowdStrike’s AI-driven “operating system of cybersecurity” strategy, highlighting 73% YoY growth in net new ARR. Strategic acquisitions (Onum, Pangea) and partnerships (AWS, F5) reinforced its position in cloud runtime security and SaaS protection. Kurtz underscored the necessity of cybersecurity in the agentic era, stating, “AI adoption necessitates the right cybersecurity. It necessitates CrowdStrike.”

Guidance

CrowdStrike provided Q4 2026 revenue guidance of $1.29–$1.30 billion (22–23% YoY growth) and full-year 2026 revenue of $4.797–$4.807 billion. The guidance exceeded analyst expectations of $3.68 EPS and $4.78 billion revenue.

Post-Earnings Price Action Review

The post-earnings price action review revealed a 43.83% return for a 30-day buy-and-hold strategy post-beat, yet underperformance relative to the 50.28% benchmark return. The strategy’s Sharpe ratio of 0.17 indicated reasonable risk-adjusted returns, though 54.25% volatility and a 0% maximum drawdown highlighted limited downside risk but missed potential gains.

Additional News

CrowdStrike’s strategic focus on AI-driven cybersecurity drew analyst attention, with RBC Capital reiterating an Outperform rating and a $621 price target. The company’s Flex licensing program and AI SOC capabilities (e.g., Charlotte) accelerated platform consolidation, with ARR from Flex accounts growing over 200% YoY. Piper Sandler raised its price target to $520, while Scotiabank and RBC Capital highlighted long-term growth potential tied to agentic AI monetization.