CrowdStrike posts record revenue driven by AI cybersecurity demand
CrowdStrike reported a surge in both revenue and annual recurring revenue (ARR) for its third quarter of the 2026 fiscal year, citing strong customer demand for its cybersecurity platform and sustained growth in AI-driven security offerings.
Financial performance
Total revenue for the quarter reached USD $1.23 billion, a 22% increase over the same period last year. Subscription revenue accounted for the bulk of this, climbing 21% to USD $1.17 billion. Net new ARR for the quarter was reported at a record USD $265 million, reflecting a year-over-year increase of 73%, and ending ARR stood at USD $4.92 billion, up 23%.
CrowdStrike's non-GAAP income from operations was a record USD $264.6 million, compared to the prior year's USD $200.7 million. Non-GAAP net income attributable to CrowdStrike was also a record at USD $245.4 million, up from USD $190.9 million for the same period last year. Net cash generated from operations reached an all-time high of USD $397.5 million. Free cash flow also rose, hitting USD $295.9 million, compared with USD $230.6 million in the previous year.
Product and customer trends
The company attributed much of its growth to increased adoption of its Falcon Flex subscription model, ending the quarter with over USD $1.35 billion in ARR from accounts using Falcon Flex. This segment grew by more than 200% year-over-year, with organisations turning to integrated platforms for cybersecurity needs.
CrowdStrike drove increased use of its full product range, with rates of customers adopting six or more, seven or more, and eight or more product modules rising to 49%, 34%, and 24%, respectively. The company introduced new and updated offerings, including Falcon Next-Gen Identity Security, Falcon Data Protection, and tools for IT and XIoT. The period also included the launch of Threat AI, described as an agentic threat intelligence system, and the expansion of the agentic security workforce.
Strategic partnerships
CrowdStrike secured high-profile partnerships with Amazon Web Services, EY, CoreWeave, and Kroll during the quarter. AWS selected CrowdStrike as its first cybersecurity partner to offer an integrated security information and event management (SIEM) service via the AWS Marketplace. EY US selected Falcon Next-Gen SIEM as its global managed security services backbone, while Kroll chose to standardise on CrowdStrike's Falcon Complete for Service Providers. Collaborations with NVIDIA, Meta, and Salesforce were also announced to secure future enterprise AI applications.
Pangea, a company in AI security, was acquired during the quarter, expanding CrowdStrike's portfolio in this area. New integrations with global companies and service providers, such as BT and KPMG, extended the reach of CrowdStrike's cybersecurity software.
Recognition and outlook
The company was recognised by several analyst groups, being listed as a Visionary in the 2025 Gartner Magic Quadrant for SIEM, and as a Leader in multiple 2025 Frost & Sullivan and Forrester reports for managed detection and response and cloud workload protection platforms.
Guidance for the final quarter of the fiscal year forecasts total revenue in the range of USD $1.29 billion to USD $1.3 billion. For the full fiscal year 2026, total revenue is now expected to be in the range of USD $4.80 billion to USD $4.81 billion. The company also raised its growth expectations for new ARR, aiming for at least 50% year-over-year growth in the second half of the year and 20% overall new ARR growth in the 2027 fiscal year.
"CrowdStrike is the enabler of secure AI transformation with the right architecture, the right products, and the right execution," said George Kurtz, Founder and CEO, CrowdStrike.
