AUSTIN, Texas, August 28, 2026, 00:10 EDT — CrowdStrike (CRWD.O) shares jumped 20.5% after the cybersecurity company reported its annual recurring revenue climbed to $5.84 billion.
- CrowdStrike shares ended Thursday at $227.96, gaining 20.5% following record quarterly earnings.
- Revenue increased by 26% to reach $1.47 billion, and ending ARR was up 25% to $5.84 billion.
- Full-year revenue outlook raised to a range of $5.991 billion to $6.011 billion.
CrowdStrike Holdings (NASDAQ: CRWD) jumped 20.5% to $227.96 on Thursday after the company reported record recurring-revenue growth and raised its annual outlook. Trading volume reached roughly 23.45 million shares.
The development is significant, as investors favored rapid acceleration over just surpassing earnings expectations. Net new annual recurring revenue totaled $332.8 million, marking a 51% increase from the same period a year earlier.
Ending ARR increased 25% to $5.84 billion. Falcon Flex accounts represented over $2.29 billion, marking a 101% surge. These numbers indicate larger customers are making wider platform commitments CrowdStrike results.
| Metric | Q2 FY2027 | Comparison |
|---|---|---|
| Total revenue | $1.471 billion | Rises 26% from a year ago; $1.44 billion forecast |
| Ending ARR | $5.84 billion | Up 25% year on year |
| Net new ARR | $332.8 million | Jumps 51% from a year before |
| Free cash flow | $377.4 million | Increases 33% year on year |
Quarterly revenue surpassed the LSEG consensus estimate of $1.44 billion. Adjusted earnings came in at 31 cents per share, compared with expectations for 29 cents Reuters.
Cash generation improved alongside growth. Operating cash flow increased to $530.3 million compared to $332.8 million. The free-cash-flow margin stood at approximately 26%.
GAAP subscription gross margin rose by one percentage point to 78%, while non-GAAP subscription margin climbed to 81%. GAAP operating loss was reduced to $33.2 million, compared with $105.5 million previously.
Management is now forecasting fiscal-year revenue between $5.991 billion and $6.011 billion, up from the prior forecast of $5.91 billion to $5.96 billion. For the third quarter, revenue is expected in the range of $1.523 billion to $1.529 billion.
Chief Executive George Kurtz described it as the company’s strongest quarter. He attributed the uptick in demand to the necessity of safeguarding enterprise AI implementations. Recent disclosures around model security have underscored that investment argument.
Wall Street increased price targets following the report. Both Oppenheimer and UBS lifted theirs to $250, and Morgan Stanley established a target of $238 Investopedia.
The targets are positioned just 4% to 10% above Thursday’s closing price. Shares have almost doubled so far in 2026. Continued execution is required to sustain the much greater valuation.
CrowdStrike reported increased platform adoption, with 51% of customers now utilizing six or more modules. Adoption for seven modules stood at 35%, while 26% of customers are using eight modules.
The upcoming verified investor event is a Fal.Con briefing scheduled for September 2 at 11:30 PDT. Executives are also set to attend conferences hosted by Citi and Goldman Sachs on September 10 investor calendar.
Risks: CrowdStrike contends with extended sales cycles, fierce platform rivalry, and potential challenges with integration. Stock-based compensation for the quarter totaled $399.0 million. Any further deceleration in net new ARR may rapidly weigh on the multiple.
Related articles: NASDAQ:CRWD
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