CrowdStrike (NASDAQ:CRWD) posted better-than-expected results for the second quarter of fiscal 2026, but its shares fell 3% in premarket trading Thursday after the company provided third-quarter revenue guidance below analyst forecasts.
For the quarter ending July 31, CrowdStrike reported adjusted earnings of $0.93 per share, surpassing the consensus estimate of $0.83. Revenue reached $1.17 billion, topping the $1.15 billion forecast and marking 21% year-over-year growth.
The company also achieved record second-quarter net new annual recurring revenue (NNARR) of $221 million, driving ending ARR to $4.66 billion, a 20% increase from the same period last year. Subscription revenue climbed 20% to $1.10 billion.
“Highlighting the quarter, NNARR returned to positive growth as the company begins to comp the negative impacts associated with last year’s incident,” Piper Sandler analyst Rob D. Owens said in a note. However, he added that the incident “continues to dampen revenue in the near-term as subscription revenue was in line for the 2nd consecutive quarter.”
Despite the strong second-quarter results, investor sentiment was hurt by CrowdStrike’s Q3 revenue guidance of $1.208–1.218 billion, below the $1.23 billion analyst consensus.
The company’s full-year revenue outlook of $4.749–4.815 billion aligned with the $4.78 billion consensus, and its full-year EPS guidance of $3.60–$3.72 exceeded analyst expectations of $3.51.
“We understand investors’ desire to invest in a strong management team that has demonstrated the ability to execute in good times and bad, but there is a lot going on here and, in our view, more risk in the numbers than usual,” Guggenheim analysts said, maintaining a Neutral rating given the company’s current valuation.
CrowdStrike also reported record second-quarter operating cash flow of $333 million and free cash flow of $284 million, reflecting strong financial performance even amid concerns over future growth.
“With reacceleration a quarter ahead of our expectations, CrowdStrike delivered an exceptional Q2,” said George Kurtz, Founder and CEO. “Record Q2 net new ARR of $221 million, over 1,000 Flex customers, and more than 100 re-flexes highlight CrowdStrike as the leader in cybersecurity consolidation.”
In addition to its earnings update, CrowdStrike announced the acquisition of Onum, a company specializing in real-time telemetry pipeline management, further expanding its cybersecurity capabilities.
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