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CrowdStrike (CRWD) · Q2 2026 results and valuation
Share price: $229.06 · 2026-11-11
CrowdStrike provides a cloud-native cybersecurity platform that uses artificial intelligence to detect, investigate, and respond to cyber threats. The company offers security services for endpoints, cloud workloads, identities, and IT operations to a global customer base. Source: 10-K annual report (2026-03-05)
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 26 Aug 2026 and 3 Jun 2026
Net income down 80.9% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.
1 · Numbers
−80.9%
Net income vs Q1 2026
Outlook given
Net income 5.3M vs 27.8M
Revenue +6.2%
Why Against the same quarter last year (turned to a profit), net income rose because of strong top line execution, continued gross margin expansion, and increased operating efficiency.
2 · How management spoke
Upbeat
More upbeat than 84% of company calls
Answers to analysts: restrained, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
CrowdStrike reported a record net new ARR of $333 million, growing 51% year-over-year and beating the high end of guidance by more than $45 million.
Valuation
Is CrowdStrike undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 20.0% growth a year (3-year revenue growth), the model's fair value is $67.22 a share — the stock trades 241% above it. Today's price assumes 38.1% growth a year.
Current price
$229.06
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+38.1% for 10 yrs
Fair value / share
$67.22
Buy below
$50.41
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
Total revenue grew 26% year-over-year to reach $1.47 billion, exceeding guidance and marking the fifth consecutive quarter of accelerating year-over-year growth.
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Guidance
The company expects annual recurring revenue to be between $6.603 and $6.612 billion for fiscal year 2027, representing a 26% increase year over year.
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Guidance
Net new ARR reached a record $333 million with 51% year-over-year growth, beating the high end of guidance by more than $45 million.
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Guidance
The company increased its FY 2027 net new ARR guidance by 630 basis points.
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Guidance
The company raised its FY27 year over year net new ARR growth outlook by an additional 630 basis points more than the previous quarter.
4 more
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Guidance
The company increased its full-year 2027 net new ARR forecast to $1.35 billion, an increase of approximately $116 million from the initial outlook.
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Figure
Ending ARR grew 34% year over year to more than $585 million due to strength across the identity product portfolio.
Source quote
“Ending ARR grew 34% year over year to more than $585 million driven by strength across our identity product portfolio.”
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Figure
All-time record FalconFlex quarter with ending ARR from accounts that have adopted the Falcon Flex subscription model surpassing $2.29 billion accelerating to 101% year over year growth.
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Figure
Falcon customers converting from standard subscriptions to flex see a greater than 40% average ending ARR uplift.
Source quote
“When Falcon customers convert from standard subscriptions to flex, we see a greater than 40% average ending ARR uplift.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 93% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Our record second quarter performance, record Q3 pipeline and broad based demand across customer segments and the Falcon platform give us increased confidence in the strength of the demand environment...”
“The combination of accelerating revenue growth and substantial year over year operating margin expansion demonstrates our strong operating leverage as we invest in the significant opportunities ahead positioning us to...”
“Our market leading cybersecurity services are in high demand, The flywheel we have created of best in class incident response services lauded by law firms and insurance brokers, translates into...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)
| Metric | Q2 2026period end 2026-07-31 | Q1 2026period end 2026-04-30 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.47B | 1.39B | +6.2% | 1.17B | +25.8% |
| Gross profit | 1.10B | 1.04B | +5.1% | 860.4M | +27.5% |
| Operating income | -33.2M | -30.6M | Loss widened | -105.5M | Loss narrowed |
| Net income | 5.3M | 27.8M | −80.9% | -70.2M | Turned profit |
| EPS | 0.01 | 0.11 | −90.9% | -0.07 | Turned profit |
| P/E | 12-mo loss | 12-mo loss | — | 12-mo loss | — |
Topics
Most discussed now
- Quarter non GAAP operating income was a record $372 million exceeding CrowdStrike's...
- The customer urgency CrowdStrike began to see in Q1 translated into increased cybersecurity investment accelerated modernization, and…
- CrowdStrike is constantly creating new data that is coming out of its endpoints.
- I cannot keep using the same old legacy exposure management or vulnerability management technology.
- CrowdStrike has seen just tremendous results there.
Faded since Q1 2026
- Fading CrowdStrike does not undertake and expressly disclaim any obligation to update or alter its forward looking statements, whether as a...
- Fading This strength is reflected in CrowdStrike's continued strong retention rates increased module adoption, third consecutive quarter of ending…
- Fading Every meeting that CrowdStrike had with customers was all about protecting AI and providing visibility into things like shadow AI.
- Fading You have just seen incredible adoption very quickly.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
CrowdStrike reported total revenue of $1.47 billion, a 26% increase from $1.17 billion in the second quarter of fiscal 2026.
- Articles or bylaws amended; Shareholder vote results · SEC 8-K · routine
- Results of operations; Other events · SEC 8-K
CrowdStrike reported total revenue of $1.39 billion, a 26% increase from $1.10 billion in the first quarter of fiscal 2026.
- Director or officer change; Regulation FD disclosure · SEC 8-K
The Board approved a performance-based equity award for President Michael Sentonas consisting of 100,000 performance stock units with a potential payout range of 0 to 200,000 shares based on relative stock performance.
- Other events · SEC 8-K
The Board of Directors approved an additional $500 million for share repurchases, increasing the total authorization to $1.5 billion, with $150.6 million already spent on 413,130 shares.
- Results of operations · SEC 8-K
CrowdStrike reported total revenue of $1.31 billion for the fourth quarter of fiscal 2026, a 23% increase compared to $1.06 billion in the fourth quarter of fiscal 2025.
- Director or officer change; Regulation FD disclosure · SEC 8-K
The Board approved a performance-based equity award for CEO George Kurtz consisting of 300,000 performance stock units with a potential payout range of 0 to 600,000 shares based on relative stock performance.
- Results of operations · SEC 8-K
CrowdStrike reported total revenue of $1.23 billion, up 22% from $1.01 billion in the third quarter of fiscal 2025, with ending ARR reaching $4.92 billion.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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next week
sharing the vision and innovation that we are bringing to the world's adoption of AI at Falcon
Source quote
“I cannot wait to share the vision and innovation that we are bringing to the world's adoption of AI at Falcon in Las Vegas next week.”
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Wednesday, September 2nd
investor briefing
Source quote
“I also encourage everyone to tune into our investor briefing on Wednesday, September 2nd.”
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FY 29
target model of 82 to 85% non GAAP subscription gross margin
Source quote
“Driven by continued cloud optimization efforts as we remain focused on achieving our FY 29 target model of 82 to 85% non GAAP subscription gross margin.”
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second half of FY27
acquisition of XM Cyber's technology assets
Source quote
“First, the acquisition of XM Cyber's technology assets, which is expected to close in the second half of FY27, and will not bring any ARR or revenue to CrowdStrike.”
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Q3
free cash flow margin of 27.5%
Source quote
“And second, at the midpoint of our guidance, we expect free cash flow margin of 27.5% in Q3 and continue to expect at least 30% for the full fiscal year on our increased revenue guidance.”