CrowdStrike Holdings 2026 Q3 Earnings Widened Losses Amid Revenue Growth

CrowdStrike Holdings (CRWD) reported fiscal 2026 Q3 earnings on Dec 2, 2025, with revenue rising 22.2% to $1.23 billion, beating expectations. The company’s net loss widened to $33.99 million, and it raised full-year revenue guidance to $4.797–$4.807 billion, reflecting stronger-than-expected demand for AI-driven security solutions.

Revenue

Subscription revenue led with $1.17 billion, a 21% year-over-year increase, while professional services contributed $65.54 million. Total revenue reached $1.23 billion, driven by robust performance across cloud, identity, and Next-Gen SIEM segments.

Earnings/Net Income

CrowdStrike’s losses deepened to $0.14 per share in Q3 2026, a 100% wider loss compared to the prior year. The net loss expanded to $33.99 million, a 102.1% increase from $16.82 million in 2025 Q3. The EPS decline indicates deteriorating profitability despite revenue growth.

Post-Earnings Price Action Review

The strategy of buying CRWD when earnings beat and holding for 30 days yielded a 40.96% return, underperforming the 50.73% benchmark. While the approach avoided significant losses (0.00% maximum drawdown), its 54.27% volatility and 0.16 Sharpe ratio highlight its riskiness.

CEO Commentary

CEO George Kurtz emphasized record Q3 performance, including $265 million in net new ARR (73% YoY growth) and $4.92 billion ending ARR (23% YoY growth). He highlighted AI-driven demand, strategic partnerships (AWS, F5, Kroll), and Falcon Flex’s role in platform consolidation, positioning CrowdStrike as the “operating system of cybersecurity.”

Guidance

CrowdStrike raised full-year FY26 revenue guidance to $4.797–$4.807 billion, with non-GAAP EPS projected at $3.70–$3.72. Q4 revenue is expected to reach $1.290–$1.300 billion, reflecting confidence in AI security solutions and platform adoption.

Additional News

CrowdStrike outlined a 23% ARR growth target for FY26, driven by AI adoption and the agentic era’s expanded attack surface. The company announced an 8-figure expansion with a European bank and a major endpoint modernization project in a large government agency. Strategic partnerships, including an expanded AWS collaboration, underscore its focus on AI integration via Charlotte AI SOC.

Key Analyst Actions

Analysts upgraded CrowdStrike’s price targets, with Stephens raising the target to $590 and DA Davidson to $580. Institutional investors, including Shelton Capital Management, increased holdings, while insiders sold 116,622 shares valued at $58.56 million in the past 90 days.

Financial Highlights

• Revenue: $1.23 billion (+22% YoY)

• Net New ARR: $265 million (+73% YoY)

• Non-GAAP EPS: $0.96 (beating forecasts by $0.02)

• Free Cash Flow: $296 million (24% of revenue)

Outlook

CrowdStrike’s focus on AI-driven solutions and platform consolidation positions it to capitalize on the expanding cybersecurity landscape. However, its valuation faces downside risks if margin expansion or growth rates fall short of expectations.