CrowdStrike Q2 Earnings Beat Expectations, Stock Falls 10%

CrowdStrike Holdings reported Q2 2022 earnings, beating key metrics, yet its stock fell 6% in after-hours trading and another 4% in regular trading. Despite this, the company's performance suggests the market may be undervaluing CrowdStrike.

CrowdStrike Holdings, Inc. (Nasdaq: CRWD) announced its second quarter fiscal year 2026 earnings, showcasing robust performance across various financial metrics. The company reported a record Q2 net new ARR of $221 million, surpassing expectations and marking a 20% year-over-year (YoY) growth in ending ARR to $4.66 billion [1]. Total revenue for the quarter was $1.17 billion, a 21% YoY increase, with subscription revenue growing by 20% to $1.10 billion [2].

CrowdStrike's Cloud, Next-Gen Identity, and Next-Gen SIEM ARR exceeded $1.56 billion, growing over 40% YoY. The company also reported a record Q2 free cash flow of $284 million, which amounted to 24% of revenue. Net cash generated from operations was $332.8 million, and free cash flow was $283.6 million [1].

Despite these impressive figures, CrowdStrike's stock experienced a significant drop after the earnings report. The stock fell 6% in after-hours trading and another 4% in regular trading. This unexpected market reaction suggests that investors may be undervaluing the company's strong performance and potential for future growth.

CrowdStrike's strategic moves, such as the acquisition of Onum Technology Inc., and its recognition as a leader in multiple Gartner and IDC reports, highlight the company's commitment to innovation and market leadership. The company also announced the general availability of CrowdStrike Signal, a new class of AI-powered detection engines, and the integration of Falcon Cloud Security with NVIDIA universal LLM NIM microservices and NeMo Safety.

Looking ahead, CrowdStrike provided guidance for the third quarter of fiscal 2026 and fiscal year 2026. Total revenue is expected to be $1,208.0 million to $1,218.0 million for the third quarter and $4,749.5 million to $4,805.5 million for the full year. Non-GAAP income from operations is expected to be $256.0 million to $262.0 million for the third quarter and $1,000.1 million to $1,040.1 million for the full year. Non-GAAP net income attributable to CrowdStrike is expected to be $238.1 million to $242.8 million for the third quarter and $922.4 million to $954.0 million for the full year [1].

CrowdStrike will host a conference call for analysts and investors to discuss its earnings results for the second quarter of fiscal 2026 and outlook for its fiscal third quarter and fiscal year 2026 today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). A recorded webcast of the event will also be available for one year on the CrowdStrike Investor Relations website ir.crowdstrike.com [1].

References:
[1] https://www.ainvest.com/news/crowdstrike-reports-record-growth-strategic-moves-q2-2026-earnings-call-highlights-2508/
[2] https://ir.crowdstrike.com/news-releases/news-release-details/crowdstrike-reports-second-quarter-fiscal-year-2026-financial