We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CRWD's Q3 earnings and $1.23B in revenues beat estimates, rising on strong Falcon adoption.
ARR hit $4.92B with $265.3M in net new ARR and broad multi-module customer uptake.
CRWD raised FY26 guidance, expecting up to $4.81B in revenues and higher non-GAAP earnings.
CrowdStrike Holdings, Inc. ((CRWD - Free Report) ) reported non-GAAP earnings per share of 96 cents for the third quarter of fiscal 2026, which surpassed the Zacks Consensus Estimate by 2.1% and came ahead of management’s guidance of 93-95 cents. Moreover, the bottom line increased 26.3% on a year-over-year basis.
CrowdStrike’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.5%.
The company’s third-quarter revenues of $1.23 billion surpassed the Zacks Consensus Estimate of $1.21 billion. Moreover, the top line increased 22% year over year and surpassed management’s guidance of $1.21-$1.22 billion. The strong adoption of the Falcon platform and better sales execution mainly aided top-line growth in the fiscal third quarter.
Subscription revenues (94.7% of the total revenues) jumped 21.4% year over year to $1.17 billion. Professional services revenues (5.3% of the total revenues) increased 38.1% year over year to $65.5 million.
As of Oct. 31, 2025, annual recurring revenues (ARR) were $4.92 billion, up 23% year over year. The company added $265.3 million to its net new ARR in the reported quarter.
CrowdStrike’s subscription customers, who adopted six or more cloud modules, represented 49% of the total subscription customers, those with seven or more cloud modules accounted for 34% and those with eight or more cloud modules represented 24% as of Oct. 31, 2025.
CrowdStrike’s Operating Details
CrowdStrike’s non-GAAP gross profit increased 22.9% to $967.8 million in the fiscal third quarter from $787.6 million in the year-ago quarter. The non-GAAP gross margin remained flat at 78%.
The non-GAAP subscription gross profit soared 22.2% year over year to $942.3 million, while the gross margin expanded 100 basis points (bps) to 81% year over year. The non-GAAP professional gross profit increased 55.3% to $25.5 million, while the gross margin expanded 400 bps to 39% on a year-over-year basis.
CrowdStrike’s total non-GAAP operating expenses increased 19.8% to $703.2 million from $586.9 million reported in the year-ago quarter. As a percentage of revenues, non-GAAP operating expenses decreased to 57% from 58.1% in the year-ago quarter.
Non-GAAP sales and marketing expenses jumped 20.3% year over year to $402.6 million. Non-GAAP research and development expenses climbed 23.3% year over year to $232.4 million. Non-GAAP general and administrative expenses increased 6.9% year over year to $68.3 million.
The non-GAAP operating income increased 31.8% to $265.6 million. The non-GAAP operating margin for the quarter contracted 100 bps year over year to 21%.
CrowdStrike’s Balance Sheet & Cash Flow
As of Oct. 31, 2025, cash and cash equivalents were $4.80 billion. CrowdStrike had a long-term debt of $745.1 million.
In the fiscal third quarter, CrowdStrike generated operating and free cash flows of $397.5 million and $295.9 million, respectively.
CrowdStrike Initiates Q4 and Raises FY26 Guidance
CrowdStrike initiated guidance for the fiscal fourth quarter. For the fiscal fourth quarter, CrowdStrike anticipates revenues between $1.29 billion and $1.30 billion. The non-GAAP operating income is expected in the band of $315.4-$319.4 million. Non-GAAP net income is forecasted in the range of $282.1-$286.6 million. The company expects non-GAAP earnings per share in the band of $1.09-$1.11 per share. The consensus mark for fiscal fourth-quarter revenues and non-GAAP earnings is pegged at $1.29 billion and $1.09 per share, respectively.
For fiscal 2026, CrowdStrike now expects revenues between $4.797 billion and $4.807 billion compared with the previous guidance of $4.749-$4.805 billion. The non-GAAP operating income for fiscal 2025 is now projected in the band of $1.036-$1.04 billion, up from the previous guidance of $1-$1.04 billion.
For fiscal 2026, the company now expects non-GAAP net income in the range of $949.6-$954 million, up from the prior guidance of $922.4-$954 million. Non-GAAP earnings per share are anticipated in the band of $3.70-$3.72, up from the prior estimate of $3.60-$3.72. The consensus mark for fiscal 2026 revenues and non-GAAP earnings is pegged at $4.78 billion and $3.67 per share, respectively.
CrowdStrike’s Zacks Rank & Stocks to Consider
Currently, CrowdStrike carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Advanced Energy Industries’ 2025 earnings has been revised upward by 10 cents to $6.23 per share over the past seven days and suggests a year-over-year increase of 67.9%. Advanced Energy Industries shares have jumped 82.6% year to date.
The Zacks Consensus Estimate for Amphenol’s 2025 earnings has moved upward by 7 cents to $3.29 per share in the past 30 days, calling for a year-over-year surge of 74.1%. Amphenol shares have soared 103.8% year to date.
The Zacks Consensus Estimate for Logitech International’s fiscal 2026 earnings has been revised upward by 2.4% to $5.61 per share in the past 30 days, suggesting a year-over-year increase of 15.9%. Logitech International shares have surged 42.1% year to date.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
CrowdStrike Q3 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
CrowdStrike Holdings, Inc. ((CRWD - Free Report) ) reported non-GAAP earnings per share of 96 cents for the third quarter of fiscal 2026, which surpassed the Zacks Consensus Estimate by 2.1% and came ahead of management’s guidance of 93-95 cents. Moreover, the bottom line increased 26.3% on a year-over-year basis.
CrowdStrike’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.5%.
The company’s third-quarter revenues of $1.23 billion surpassed the Zacks Consensus Estimate of $1.21 billion. Moreover, the top line increased 22% year over year and surpassed management’s guidance of $1.21-$1.22 billion. The strong adoption of the Falcon platform and better sales execution mainly aided top-line growth in the fiscal third quarter.
CrowdStrike Price, Consensus and EPS Surprise
CrowdStrike price-consensus-eps-surprise-chart | CrowdStrike Quote
Top-Line Details of CrowdStrike
Subscription revenues (94.7% of the total revenues) jumped 21.4% year over year to $1.17 billion. Professional services revenues (5.3% of the total revenues) increased 38.1% year over year to $65.5 million.
As of Oct. 31, 2025, annual recurring revenues (ARR) were $4.92 billion, up 23% year over year. The company added $265.3 million to its net new ARR in the reported quarter.
CrowdStrike’s subscription customers, who adopted six or more cloud modules, represented 49% of the total subscription customers, those with seven or more cloud modules accounted for 34% and those with eight or more cloud modules represented 24% as of Oct. 31, 2025.
CrowdStrike’s Operating Details
CrowdStrike’s non-GAAP gross profit increased 22.9% to $967.8 million in the fiscal third quarter from $787.6 million in the year-ago quarter. The non-GAAP gross margin remained flat at 78%.
The non-GAAP subscription gross profit soared 22.2% year over year to $942.3 million, while the gross margin expanded 100 basis points (bps) to 81% year over year. The non-GAAP professional gross profit increased 55.3% to $25.5 million, while the gross margin expanded 400 bps to 39% on a year-over-year basis.
CrowdStrike’s total non-GAAP operating expenses increased 19.8% to $703.2 million from $586.9 million reported in the year-ago quarter. As a percentage of revenues, non-GAAP operating expenses decreased to 57% from 58.1% in the year-ago quarter.
Non-GAAP sales and marketing expenses jumped 20.3% year over year to $402.6 million. Non-GAAP research and development expenses climbed 23.3% year over year to $232.4 million. Non-GAAP general and administrative expenses increased 6.9% year over year to $68.3 million.
The non-GAAP operating income increased 31.8% to $265.6 million. The non-GAAP operating margin for the quarter contracted 100 bps year over year to 21%.
CrowdStrike’s Balance Sheet & Cash Flow
As of Oct. 31, 2025, cash and cash equivalents were $4.80 billion. CrowdStrike had a long-term debt of $745.1 million.
In the fiscal third quarter, CrowdStrike generated operating and free cash flows of $397.5 million and $295.9 million, respectively.
CrowdStrike Initiates Q4 and Raises FY26 Guidance
CrowdStrike initiated guidance for the fiscal fourth quarter. For the fiscal fourth quarter, CrowdStrike anticipates revenues between $1.29 billion and $1.30 billion. The non-GAAP operating income is expected in the band of $315.4-$319.4 million. Non-GAAP net income is forecasted in the range of $282.1-$286.6 million. The company expects non-GAAP earnings per share in the band of $1.09-$1.11 per share. The consensus mark for fiscal fourth-quarter revenues and non-GAAP earnings is pegged at $1.29 billion and $1.09 per share, respectively.
For fiscal 2026, CrowdStrike now expects revenues between $4.797 billion and $4.807 billion compared with the previous guidance of $4.749-$4.805 billion. The non-GAAP operating income for fiscal 2025 is now projected in the band of $1.036-$1.04 billion, up from the previous guidance of $1-$1.04 billion.
For fiscal 2026, the company now expects non-GAAP net income in the range of $949.6-$954 million, up from the prior guidance of $922.4-$954 million. Non-GAAP earnings per share are anticipated in the band of $3.70-$3.72, up from the prior estimate of $3.60-$3.72. The consensus mark for fiscal 2026 revenues and non-GAAP earnings is pegged at $4.78 billion and $3.67 per share, respectively.
CrowdStrike’s Zacks Rank & Stocks to Consider
Currently, CrowdStrike carries a Zacks Rank #3 (Hold).
Advanced Energy Industries ((AEIS - Free Report) ), Amphenol ((APH - Free Report) ) and Logitech International ((LOGI - Free Report) ) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Advanced Energy Industries, Amphenol and Logitech International sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Advanced Energy Industries’ 2025 earnings has been revised upward by 10 cents to $6.23 per share over the past seven days and suggests a year-over-year increase of 67.9%. Advanced Energy Industries shares have jumped 82.6% year to date.
The Zacks Consensus Estimate for Amphenol’s 2025 earnings has moved upward by 7 cents to $3.29 per share in the past 30 days, calling for a year-over-year surge of 74.1%. Amphenol shares have soared 103.8% year to date.
The Zacks Consensus Estimate for Logitech International’s fiscal 2026 earnings has been revised upward by 2.4% to $5.61 per share in the past 30 days, suggesting a year-over-year increase of 15.9%. Logitech International shares have surged 42.1% year to date.