CrowdStrike posted non-GAAP EPS of $1.12, beating the consensus estimate of $1.10 by $0.02, while revenue of $1.31 billion topped expectations of $1.30 billion. The company surpassed $5 billion in ending ARR for the first time and delivered record net new ARR of $331 million, up 47% year-over-year. Shares rose approximately 1.7% in the session following the March 3 report and extended gains to roughly 15% over the following five trading days.
About CrowdStrike
CrowdStrike Holdings, Inc. (Nasdaq: CRWD) is a global cybersecurity technology company headquartered in Austin, Texas, founded in 2011 by George Kurtz, Dmitri Alperovitch, and Gregg Marston. The company provides cloud-native endpoint security, threat intelligence, and cyberattack response services through its Falcon platform, which leverages real-time indicators of attack, AI-driven threat detection, and enriched telemetry from across the enterprise.
CrowdStrike employs over 10,000 people across seven offices worldwide and operates in more than 170 countries, serving industries including finance, healthcare, government, and technology. As of March 9, 2026, the company carried a market capitalization of approximately $109.45 billion. The stock trades at a GAAP P/E ratio of approximately -310 (reflecting GAAP losses driven by stock-based compensation and incident-related costs), while on a non-GAAP basis the trailing P/E is approximately 116 based on FY26 non-GAAP EPS of $3.73.
CrowdStrike gained early prominence through its investigation of the 2014 Sony Pictures hack and the 2015-16 Democratic National Committee cyberattacks. Its Falcon platform serves as mission-critical infrastructure for enterprises adopting AI, securing systems from GPU to agent to prompt.
Top Financial Highlights
- Total Revenue reached $1.31 billion in Q4, up 23% year-over-year from $1.06 billion; full-year FY26 revenue totaled $4.81 billion, up 22%
- Subscription Revenue was $1.24 billion in Q4, a 23% increase, comprising 95% of total revenue
- Professional Services Revenue was $63.1 million, up 26% year-over-year, driven by the elevated threat environment
- Annual Recurring Revenue (ARR) grew 24% to $5.25 billion as of January 31, 2026, crossing the $5 billion milestone for the first time
- Net New ARR reached a record $330.7 million in Q4, up 47% year-over-year; full-year net new ARR was $1.01 billion, the first year exceeding $1 billion
- GAAP Net Income was $38.7 million ($0.15 per diluted share), compared to a loss of $86.3 million in Q4 FY25, marking the first quarter of positive GAAP net income
- Non-GAAP Net Income hit a record $289.1 million ($1.12 per diluted share), up 41% from $205.3 million ($0.81) in Q4 FY25
- Non-GAAP Gross Margin was a record 79%; non-GAAP subscription gross margin reached an all-time high of 81%
- Non-GAAP Operating Income was a record $325.8 million (25% margin), up 45% year-over-year
- Operating Cash Flow reached $497.9 million in Q4, up 44% from $345.7 million
- Free Cash Flow jumped 57% to a record $376.4 million (29% of revenue); full-year FCF was $1.24 billion (26% of revenue)
- Cash and Cash Equivalents grew to $5.23 billion as of January 31, 2026
- Dollar-Based Net Retention Rate stood at 115%, with a gross retention rate of 97%
- Falcon Flex ARR reached $1.69 billion, up over 120% year-over-year
- Module Adoption rates were 50% (6+ modules), 34% (7+ modules), and 24% (8+ modules) as of January 31, 2026
Beat or Miss?
CrowdStrike exceeded analyst estimates across all key metrics for Q4 FY2026.
| Metric | Reported | Estimated | Difference |
| Non-GAAP EPS | $1.12 | $1.10 | Beat by $0.02 (1.8%) |
| Total Revenue | $1.31B | $1.30B | Beat by $10M (0.77%) |
| Net New ARR | $331M | $215-235M (Street range) | Beat significantly (exceeded bull-case estimate) |
| Non-GAAP Operating Margin | 25% | ~23-24% (implied from guidance) | Exceeded Q4 guidance |
| Free Cash Flow | $376M | ~$300M (implied) | Beat by ~25% |
| FY26 Full-Year Revenue | $4.81B | $4.78B (prior consensus) | Beat by $30M |
| FY26 Full-Year Non-GAAP EPS | $3.73 | $3.68-$3.72 (guidance range) | At top of guidance |
The company also issued FY27 guidance above prior consensus: full-year revenue of $5.87B-$5.93B and non-GAAP EPS of $4.78-$4.90, implying roughly 22% top-line growth and 28-31% EPS growth.
What Leadership Is Saying?
“FY26 will go down in our history books as CrowdStrike’s best year yet. We achieved $5.25 billion in ending ARR, the fastest and only pure-play cybersecurity software company to achieve this milestone, driven by a record $1.01 billion of net new ARR, our first year exceeding $1 billion of net new ARR. We also delivered record operating and free cash flow for both the quarter and year.
As enterprises rapidly adopt AI, CrowdStrike is mission-critical infrastructure, securing AI across every layer from GPU to agent to prompt. The AI revolution is creating a massive growth opportunity for CrowdStrike, one that our technology, team, and ecosystem are well positioned to continue winning.” Says George Kurtz, Founder and CEO
“CrowdStrike delivered a record fourth quarter and fiscal year 2026, exceeding expectations across all guided metrics. The combination of accelerating growth, expanding profitability, and record cash flow generation puts CrowdStrike in rare air.
With exceptional momentum across the business and a record Q1 pipeline entering FY27, we have strong conviction to once again raise our FY27 ARR outlook. The AI revolution represents a new, generational growth opportunity for CrowdStrike, and we are confident in our ability to deliver durable, profitable growth as we scale to our goal of $20 billion ending ARR in FY36.” Says Burt Podbere, Chief Financial Officer
Historical Performance
Q4 FY2026 vs. Q4 FY2025
| Category | Q4 FY2026 | Q4 FY2025 | Change (%) |
| Total Revenue | $1.31B | $1.06B | +23% |
| Subscription Revenue | $1.24B | $1.01B | +23% |
| Gross Profit | $989.5M | $786.2M | +26% |
| Non-GAAP Operating Income | $325.8M | $224.8M | +45% |
| GAAP Net Income (Loss) | $38.7M | ($86.3M) | Turned profitable |
| Non-GAAP Net Income | $289.1M | $205.3M | +41% |
| Non-GAAP EPS (Diluted) | $1.12 | $0.81 | +38% |
| Operating Cash Flow | $497.9M | $345.7M | +44% |
| Free Cash Flow | $376.4M | $239.8M | +57% |
| Ending ARR | $5.25B | $4.24B | +24% |
| Net New ARR | $330.7M | $222M | 47% |
Full Year FY2026 vs. FY2025
| Category | FY2026 | FY2025 | Change (%) |
| Total Revenue | $4.81B | $3.95B | +22% |
| Non-GAAP Operating Income | $1.05B | $880M | +19% |
| Non-GAAP Net Income | $956.6M | $814.6M | +17% |
| Non-GAAP EPS (Diluted) | $3.73 | $3.24 | +15% |
| Operating Cash Flow | $1.61B | $1.38B | +17% |
| Free Cash Flow | $1.24B | $1.07B | 16% |
Cybersecurity Competitor Comparison
The following table compares CrowdStrike’s most recent quarterly performance against its two largest publicly traded cybersecurity peers, Palo Alto Networks and Fortinet. Note that each company operates on a different fiscal calendar: CrowdStrike’s Q4 FY26 ended January 31, 2026; Palo Alto Networks’ Q2 FY26 ended January 31, 2026; Fortinet’s Q4 CY2025 ended December 31, 2025.
| Category | CrowdStrike (Q4 FY26) | Palo Alto Networks (Q2 FY26) | Fortinet (Q4 CY2025) |
| Quarterly Revenue | $1.31B | $2.59B | $1.91B |
| Revenue YoY Growth | +23% | +15% | +15% |
| GAAP Net Income | $38.7M | $432M | $506M |
| Non-GAAP EPS | $1.12 | $1.03 | $0.81 |
| Non-GAAP Operating Margin | 25% | 30.3% | 37% |
| Free Cash Flow | $376M | $502M (adj.) | $577M |
| Revenue Growth Guidance (FY) | ~22% ($5.87-5.93B) | ~22-23% ($11.28-11.31B) | ~10-13% ($7.50-7.70B) |
CrowdStrike leads the group in top-line revenue growth at 23%, while Fortinet leads in operating margin at 37% and Palo Alto Networks leads in absolute GAAP profitability at $432 million in quarterly net income. CrowdStrike’s growth profile is notable given its accelerating trajectory (from 20% in Q1 to 23% in Q4), while both Palo Alto and Fortinet maintained steady 15% growth rates in their most recent quarters.
How the Market Reacted?
CrowdStrike shares traded up approximately 1.7% on March 3, 2026, the day of the earnings release, closing near $391.42 on trading volume of roughly 7.1 million shares, about 82% above the average daily volume. Over the following five trading days, the stock extended its rally to a cumulative gain of approximately 15%, reaching $428 by March 9, adding roughly $14 billion in market capitalization to bring the total to approximately $108 billion.
Wall Street sentiment remains largely positive, with 31 Buy ratings, 15 Hold ratings, and 3 Sell ratings, alongside an average analyst price target of approximately $520, implying roughly 20% upside from current levels. Multiple firms including Needham and UBS raised their price targets following the report. The strong market reaction reflected relief that the July 2024 Falcon outage’s impact on customer acquisition has fully normalized, with the record $331 million net new ARR figure decisively exceeding even the most optimistic bull-case scenarios of $235 million.
