CrowdStrike Holdings 2026 Q2 Earnings Earnings Losses Deepen Despite Revenue Beat

CrowdStrike Holdings (CRWD) reported second-quarter fiscal 2026 earnings on August 27, 2025, delivering revenue above expectations but posting a net loss, reversing its prior-year profitability. The company guided for a narrowing of its losses in the full year but tempered expectations with slightly lower-than-estimated third-quarter revenue, weighing on investor sentiment.

Revenue
CrowdStrike’s total revenue climbed 21.3% year-over-year to $1.17 billion in Q2 2026. Subscription revenue, the company’s core offering, grew in line with total revenue at $1.10 billion, while professional services revenue added $66.01 million to the total. This reflects strong demand for CrowdStrike’s cloud-native security solutions and continued traction with enterprise customers.

Earnings/Net Income
The company swung to a net loss of $77.64 million in Q2 2026, or $0.31 per share, marking a 266.3% deterioration from a $46.69 million profit of $0.19 per share in the same period in 2025. The sharp decline in profitability underscores the challenges of scaling at high growth rates amid increased R&D and strategic investments.

Price Action
CrowdStrike’s stock edged up 0.24% during the latest trading day and gained 0.82% over the past week, but faced a 10.50% decline month-to-date, reflecting investor concerns over the earnings performance and revised guidance.

Post-Earnings Price Action Review
Despite the earnings shortfall, a strategy of buying CrowdStrike shares on the earnings report date and holding for 30 days proved effective, returning 66.76% compared to the benchmark’s 58.85%. The approach delivered a compound annual growth rate of 19.31%, with no maximum drawdown recorded, and maintained a Sharpe ratio of 0.37 and volatility of 52.15%, indicating a favorable risk-adjusted performance.

CEO Commentary
George Kurtz, CEO and Founder, highlighted a “reacceleration” in business performance, driven by the AI-powered Falcon platform and strong execution. He noted the company exceeded all guided metrics, including a record $221 million in net new ARR and ending ARR of $4.66 billion, up 20% year-over-year. Strategic priorities include the acquisition of ONEM to enhance next-gen SIEM capabilities and expanding identity and cloud security solutions. Kurtz emphasized the importance of Falcon Flex licensing, with over 1,000 customers and strong re-flex adoption, reinforcing platform consolidation. He remains confident in the long-term growth trajectory driven by AI innovation and market leadership.

Guidance
Burt Podbeare, CFO, provided Q3 and FY 2026 guidance. Total revenue for Q3 is expected to range between $1.208 billion and $1.218 billion, representing 20–21% year-over-year growth. For the full fiscal year, revenue is projected to be between $4.7495 billion and $4.8055 billion, or 20–22% growth. Non-GAAP net income per share is expected to reach $3.60–$3.72, and free cash flow margin is anticipated to expand beyond 30% in FY 2027. Podbeare also noted high-single-digit sequential net new ARR growth, with at least 40% YoY growth expected in the back half of the year.

Additional News
The company announced plans to acquire Onum, a real-time telemetry pipeline management firm, to enhance its next-generation security information and event management (SIEM) capabilities. Terms of the deal were not disclosed. CrowdStrike also raised its full-year adjusted earnings guidance from $3.44–$3.56 per share to $3.60–$3.72 per share. In a separate development, the company ended Q2 with $4.97 billion in cash and cash equivalents, reflecting strong free cash flow generation of $283.6 million. Executives will further discuss the quarter in an earnings call with investors and analysts on August 28, 2025, at 5:00 PM ET.