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CrowdStrike Earnings Beat Expectations, Shares Rebound Despite Short Sell-Off
ByAinvest
Thursday, Aug 28, 2025 2:43 pm ET1min read
CrowdStrike's Q2 revenue grew 21.4% to $1.17 billion, beating expectations. Adjusted EPS of $0.93 also surpassed expectations. However, the company's guidance for Q3 was slightly lower than analyst estimates, causing a brief dip in the stock price. CEO George Kurtz emphasized revenue and ARR acceleration in the coming quarters, leading to a rebound in the stock price. Despite a high valuation, CrowdStrike is a leading cybersecurity company with a strong track record of growth.
CrowdStrike Holdings, Inc. (Nasdaq: CRWD) announced its financial results for the second quarter fiscal year 2026, ended July 31, 2025, showcasing robust growth and exceeding analyst expectations. The company reported total revenue of $1.17 billion, representing a 21.4% increase from the same period last year [1].Key highlights include:
- ARR Growth: Annual Recurring Revenue (ARR) grew by 20% year-over-year to $4.66 billion, with $221.1 million in net new ARR added in the quarter.
- Cash Flow: Record Q2 cash flow from operations of $333 million and record Q2 free cash flow of $284 million were reported.
- Subscription Revenue: Subscription revenue increased by 20% to $1.10 billion.
- Non-GAAP Income: Non-GAAP income from operations reached a record $255.0 million, while non-GAAP net income attributable to CrowdStrike hit $237.4 million.
Despite the strong performance, the company's guidance for the third quarter of fiscal 2026 was slightly below analyst estimates, causing a brief dip in the stock price. CEO George Kurtz emphasized the company's focus on revenue and ARR acceleration in the coming quarters, leading to a rebound in the stock price [1].
CrowdStrike's high valuation and leading position in the cybersecurity market were highlighted by its achievements in the second quarter. The company was named a Leader in the 2025 Gartner Magic Quadrant for Endpoint Protection Platforms and received numerous other industry recognitions [1].
References:
[1] https://ir.crowdstrike.com/news-releases/news-release-details/crowdstrike-reports-second-quarter-fiscal-year-2026-financial
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