CrowdStrike Holdings 2026 Q3 Earnings Revenue Beats Expectations Amid Widened Losses

CrowdStrike Holdings (CRWD) reported fiscal 2026 Q3 earnings on Dec 3, 2025, with revenue surpassing expectations by 22.2% year-over-year to $1.23 billion. The company raised its full-year revenue guidance, reflecting strong performance despite a 102.1% increase in net losses.

Revenue

CrowdStrike’s total revenue surged to $1.23 billion, driven by robust subscription growth. Subscription revenue reached $1.17 billion, underscoring the company’s core strength, while professional services contributed $65.54 million. The performance highlights the platform’s appeal in a competitive cybersecurity landscape.

Earnings/Net Income

The company’s financial losses deepened significantly. Net loss widened to $33.99 million in 2026 Q3, a 102.1% increase from $16.82 million in 2025 Q3. Earnings per share (EPS) fell to -$0.14 from -$0.07, reflecting operational challenges amid aggressive R&D and market expansion. The deteriorating profitability raises short-term execution risks.

Post-Earnings Price Action Review

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 of 0.17 indicates reasonable risk-adjusted returns, but with a volatility of 54.25% and a maximum drawdown of 0%, the strategy exhibited limited downside risk yet missed broader market gains.

CEO Commentary

CEO George Kurtz emphasized CrowdStrike’s record Q3 performance, including $265 million net new ARR and $4.92 billion ending ARR. Strategic priorities include AI-driven threat detection, Falcon Flex adoption, and partnerships with AWS and Kroll. Kurtz positioned CrowdStrike as the “operating system of cybersecurity,” leveraging AI as a generational opportunity.

Guidance

CrowdStrike projected Q4 2026 revenue of $1.29–1.30 billion (22–23% YoY growth) and full-year revenue of $4.797–4.807 billion (21–22% YoY growth). Non-GAAP net income is expected at $950–954 million ($3.70–3.72 diluted EPS), with Q4 non-GAAP net income of $282–287 million ($1.09–1.11 diluted EPS). Free cash flow margin targets 25% for FY 2026.

Additional News

1. Goldman Sachs Raised Price Target: Goldman Sachs increased its price target for CRWD to $564 from $535, maintaining a “Buy” rating. The firm cited Falcon Flex’s success and emerging product momentum in SIEM and observability.

2. Morningstar Raised Fair Value Estimate: Morningstar raised its fair value estimate for CRWD to $410 from $330, citing strong ARR growth and platform expansion.

3. SWOT Analysis Highlights Risks: A recent SEC 10-Q filing underscored CrowdStrike’s brand strength and R&D investment but warned of operational weaknesses, including a 35% R&D cost increase and a 26% rise in expenses.

Data and analysis are for informational purposes only and not investment advice.