reacceleration. We've talked about reacceleration coming in the back half of this fiscal year, and it's here now. I'm proud of CrowdStrike Holdings, Inc.'s ability to deliver reacceleration, our return to year-over-year net new ARR growth a quarter early.
— George Kurtz
03Detailed Report
CRWD
Company CRWD
Period
Q2 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 19, 2026
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Executive Summary
CrowdStrike reported a robust QQ2 2026 quarter that flooringed expectations across revenue, ARR, and profitability metrics. Total revenue reached $1.17 billion, up 21% year over year, with non-GAAP operating income of $255 million (22% operating margin) and non-GAAP net income of $237.4 million ($0.93 per diluted share). Ending ARR stood at $4.66 billion, a 20% YoY increase, driven by accelerating net new ARR of $221 million and a cloud/SIEM/identity growth trajectory that now includes NEXT-GEN offerings and a high-velocity Flex licensing model. The quarterly results were underpinned by AI-driven demand for Falcon and continued platform consolidation (six to eight modules per customer on the way to $10B ending ARR by FY31). CrowdStrike also announced its intent to acquire Onum, aiming to strengthen real-time data ingestion and pipeline capabilities for NextGen SIEM, and highlighted ONEM’s in-pipeline detection and performance advantages. Management guided for a back-half net new ARR growth of at least 40% year over year and ending ARR growth above 22% for FY2026, reinforcing confidence in sustained acceleration. The company also stressed balance sheet strength (cash and equivalents ~ $4.97B) and a longer-term path to >$30% free cash flow margin in FY27. Overall, CrowdStrike remains well-positioned at the intersection of AI-enabled security, cloud-native workloads, and identity protection, with a clear execution plan to reach a $10B ending ARR target by FY31 while expanding share in cloud security, identity, and SIEM markets.
Key Performance Indicators
Revenue
Increasing
1.17B
QoQ: 5.94% | YoY: 21.28%
Gross Profit
Increasing
858.67M
73.46% margin
QoQ: 5.45% | YoY: 18.20%
Operating Income
Decreasing
-112.98M
QoQ: 9.37% | YoY: -927.20%
Net Income
Decreasing
-77.68M
QoQ: 29.52% | YoY: -265.22%
EPS
Decreasing
-0.31
QoQ: 29.55% | YoY: -263.16%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability
- Revenue: $1.16895B, up 21% YoY; QoQ growth: ~5.9% (from prior quarter data).
- Non-GAAP gross margin: 78.0%; Non-GAAP subscription gross margin: 80.0%.
- Operating expenses (non-GAAP): $652.5M (56% of revenue); non-GAAP operating income: $255.0M; non-GAAP operating margin: 22%.
- GAAP net loss: $77.7M; includes $35.7M outage-related costs and $38.4M strategic plan charges.
- Non-GAAP net income: $237.4M; Non-GAAP EPS: $0.93 (diluted).
- Tax rate: Long-term non-GAAP tax rate reduced to 21% from 22.5%, contributing ~ $0.3 benefit to diluted EPS.
Cash flow and liquidity
- Cash and cash equivalents: $4.97B.
- Operating cash flow: $332.8M; Free cash flow: $283.6M (24% of revenue).
- Free cash flow impact from outages/plan costs: ~$29M in QQ2.
ARR and product momentum
- Ending ARR: $4.66B, +20% YoY.
- Net new ARR: $221M (record QQ2).
- Cloud ARR ending: >$700M, +35% YoY.
- NextGen SIEM ARR: >$430M, +>95% YoY.
- Falcon Flex: >1,000 Flex customers; Flex utilization >75%; reflexed accounts ~10% of Flex base; reflex activity yields ~50% uplift in ending ARR per reflex.
- Module adoption among subscription customers: 6 modules (48%), 7 modules (33%), 8+ modules (23%); among >$100k ending ARR customers, 60% use 8+ modules.
- Identity security (next-gen identity protection) ending ARR >$435M, +21% YoY. PAM solution addition announced in Q1; acceleration in identity-related opportunities supported by Shield and PAM.
- Cloud security wins: 7-figure enterprise win with CNAP/CSPM adoption and single-platform ASPM integration to reduce manual work.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.17B
21.28%
5.94%
Gross Profit
858.67M
18.20%
5.45%
Operating Income
-112.98M
-927.20%
9.37%
Net Income
-77.68M
-265.22%
29.52%
EPS
-0.31
-263.16%
29.55%
Key Financial Ratios
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