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Can Charlotte AI Boost CrowdStrike's Next-Gen SIEM Momentum?
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Key Takeaways
CRWD posted a record net new ARR quarter for Falcon Next-Gen SIEM in Q3 FY26.
Charlotte AI automates SIEM triage and response, cutting workflows from days to minutes for SIEM users.
CrowdStrike won large SIEM replacement deals and gained FedRAMP High approval for Charlotte AI.
CrowdStrike (CRWD - Free Report) is using Charlotte AI to strengthen its Falcon Next-Generation (Next-Gen) Security Information and Event Management (SIEM). In the third quarter of fiscal 2026, Falcon Next-Gen SIEM delivered a record net new annual recurring revenues (ARR), showing rising customer demand.
CrowdStrike believes Charlotte AI can help make its Next-Gen SIEM more useful for customers. In the third quarter, CrowdStrike described Charlotte AI as an agentic security analyst that can help automate tasks like triage, investigation and response. Management said work that would take four days to complete can now be done in minutes using Charlotte AI. Faster workflows matter in SIEM because security teams deal with large volumes of alerts and data every day.
During the third quarter, CrowdStrike shared customer examples where Next-Gen SIEM and Charlotte AI were adopted together. A major European bank replaced its legacy SIEM and streaming pipeline with Falcon Next-Gen SIEM, Onum, and Charlotte AI in a large eight-figure deal. The customer was able to move off Splunk, showing CrowdStrike is winning SIEM replacement deals. Another example was a global healthcare customer that signed an eight-figure Falcon Flex contract, with Charlotte AI playing a central role in its security operations transformation and replacing a legacy SIEM as part of the broader platform shift.
Charlotte AI achieved FedRAMP high authorization during the third quarter. This means U.S. government agencies can use Charlotte AI through the Falcon platform in GovCloud. Government and regulated customers are large security buyers, so this can support SIEM and SOC deals.
Overall, for now, strong Next-Gen SIEM momentum and Charlotte AI’s role in automation suggest CrowdStrike has a solid product combination that could support growth in the coming quarters. The Zacks Consensus Estimate for both fiscal 2026 and 2027 revenues indicates a year-over-year increase of around 21%.
How Competitors Fare Against CrowdStrike
Competitors like Palo Alto Networks (PANW - Free Report) and SentinelOne (S - Free Report) are gaining ground through platform expansion and AI innovation.
In the first quarter of fiscal 2026, Palo Alto Networks saw robust growth in its Next-Gen Security ARR, which increased 29% year over year. The growth was driven by increased customer adoption of PANW’s advanced cybersecurity offerings, including its AI-driven XSIAM platform, SASE and software firewalls.
Though comparatively a small competitor, SentinelOne posted third-quarter fiscal 2026 year-over-year growth of 23% in ARR. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.
CRWD’s Price Performance, Valuation and Estimates
Shares of CrowdStrike have lost 2.3% in the past six months compared with the Zacks Security industry’s decline of 4%.
CRWD 6-Month Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 20.32, way higher than the industry’s average of 12.45.
CRWD Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2026 earnings implies a year-over-year decline of 5.6%, while the same for fiscal 2027 earnings indicates year-over-year growth of 28.8%. The estimates for fiscal 2026 and 2027 have been revised upward by 4 cents and 3 cents, respectively, over the past 60 days.
Image: Shutterstock
Can Charlotte AI Boost CrowdStrike's Next-Gen SIEM Momentum?
Key Takeaways
CrowdStrike (CRWD - Free Report) is using Charlotte AI to strengthen its Falcon Next-Generation (Next-Gen) Security Information and Event Management (SIEM). In the third quarter of fiscal 2026, Falcon Next-Gen SIEM delivered a record net new annual recurring revenues (ARR), showing rising customer demand.
CrowdStrike believes Charlotte AI can help make its Next-Gen SIEM more useful for customers. In the third quarter, CrowdStrike described Charlotte AI as an agentic security analyst that can help automate tasks like triage, investigation and response. Management said work that would take four days to complete can now be done in minutes using Charlotte AI. Faster workflows matter in SIEM because security teams deal with large volumes of alerts and data every day.
During the third quarter, CrowdStrike shared customer examples where Next-Gen SIEM and Charlotte AI were adopted together. A major European bank replaced its legacy SIEM and streaming pipeline with Falcon Next-Gen SIEM, Onum, and Charlotte AI in a large eight-figure deal. The customer was able to move off Splunk, showing CrowdStrike is winning SIEM replacement deals. Another example was a global healthcare customer that signed an eight-figure Falcon Flex contract, with Charlotte AI playing a central role in its security operations transformation and replacing a legacy SIEM as part of the broader platform shift.
Charlotte AI achieved FedRAMP high authorization during the third quarter. This means U.S. government agencies can use Charlotte AI through the Falcon platform in GovCloud. Government and regulated customers are large security buyers, so this can support SIEM and SOC deals.
Overall, for now, strong Next-Gen SIEM momentum and Charlotte AI’s role in automation suggest CrowdStrike has a solid product combination that could support growth in the coming quarters. The Zacks Consensus Estimate for both fiscal 2026 and 2027 revenues indicates a year-over-year increase of around 21%.
How Competitors Fare Against CrowdStrike
Competitors like Palo Alto Networks (PANW - Free Report) and SentinelOne (S - Free Report) are gaining ground through platform expansion and AI innovation.
In the first quarter of fiscal 2026, Palo Alto Networks saw robust growth in its Next-Gen Security ARR, which increased 29% year over year. The growth was driven by increased customer adoption of PANW’s advanced cybersecurity offerings, including its AI-driven XSIAM platform, SASE and software firewalls.
Though comparatively a small competitor, SentinelOne posted third-quarter fiscal 2026 year-over-year growth of 23% in ARR. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.
CRWD’s Price Performance, Valuation and Estimates
Shares of CrowdStrike have lost 2.3% in the past six months compared with the Zacks Security industry’s decline of 4%.
CRWD 6-Month Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 20.32, way higher than the industry’s average of 12.45.
CRWD Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2026 earnings implies a year-over-year decline of 5.6%, while the same for fiscal 2027 earnings indicates year-over-year growth of 28.8%. The estimates for fiscal 2026 and 2027 have been revised upward by 4 cents and 3 cents, respectively, over the past 60 days.
Image Source: Zacks Investment Research
CrowdStrike currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.