CrowdStrike Holdings 2026 Q3 Earnings Net Loss Widens by 102.1%

CrowdStrike Holdings reported fiscal 2026 Q3 results that beat revenue expectations but fell short of profitability. The company raised full-year guidance for revenue and non-GAAP EPS, signaling confidence in its AI-driven growth strategy despite deepening losses.

Revenue

CrowdStrike’s total revenue rose 22.2% year-over-year to $1.23 billion in Q3 2026, driven by robust performance in its core subscription business. Subscription revenue reached $1.17 billion, reflecting 21% growth compared to $962.7 million in the prior year. Professional services contributed $65.54 million, rounding out the total revenue figure. The company’s focus on expanding its Falcon platform and AI-integrated solutions underpinned the subscription growth, particularly in cloud and identity security segments.

Earnings/Net Income

The company’s financial performance deteriorated, with a net loss widening to $33.99 million in Q3 2026, a 102.1% increase from the $16.82 million loss in Q3 2025. Earnings per share (EPS) turned negative at $0.14, more than double the $0.07 loss per share in the prior year. This significant decline in profitability highlights the challenges of scaling AI-driven cybersecurity offerings while maintaining margins.

Price Action

Shares of CrowdStrike edged up 0.60% on the day of the earnings release and gained 1.92% for the week, though they retreated 4.11% month-to-date. The stock’s mixed performance reflects investor optimism about long-term growth prospects tempered by concerns over near-term profitability.

Post-Earnings Price Action Review

A strategy of buying CrowdStrike following a positive earnings beat and holding for 30 days yielded a 40.96% return, outperforming the 50.73% benchmark by a modest margin. However, the approach underperformed relative to broader market gains, with a Sharpe ratio of 0.16 indicating reasonable risk-adjusted returns. The strategy’s volatility of 54.27% and a maximum drawdown of 0% suggest limited downside risk but also highlight its inability to capture broader market momentum.

CEO Commentary

CEO George Kurtz emphasized CrowdStrike’s “generational opportunity” in securing AI infrastructure, citing 73% year-over-year net new ARR growth ($265 million) and 23% ending ARR growth ($4.92 billion). The company’s Falcon single-platform strategy and partnerships, such as its expanded collaboration with AWS, were positioned as key differentiators. Kurtz also highlighted Falcon Shield’s 50% sequential ARR growth, underscoring the platform’s role in addressing AI-driven cybersecurity demands.

Guidance

CrowdStrike raised full-year 2026 revenue guidance to $4.797–$4.807 billion (21–22% YoY growth) and non-GAAP net income of $950M–$954M ($3.70–$3.72 diluted EPS). Q4 guidance includes revenue of $1.29–$1.30 billion and non-GAAP diluted EPS of $1.09–$1.11.

Additional News

CrowdStrike’s CEO highlighted strategic partnerships, including an expanded AWS collaboration and Falcon Next-Gen SIEM integration, as critical to its AI-driven growth. The company also announced significant deals, such as an 8-figure expansion with a European bank and a large government agency’s endpoint modernization. Insider selling activity, however, drew attention, with executives and directors offloading 116,622 shares valued at $58.6 million in the past three months. Analysts remain cautiously optimistic, with upgraded price targets from institutions like Scotiabank ($600) and BTIG ($640), though some caution about valuation risks amid rising costs and limited profitability.