CrowdStrike Q3 Earnings Beat Estimates, Revenues Increase Y/Y

CrowdStrike Holdings, Inc. (CRWD) reported non-GAAP earnings per share of 96 cents for the third quarter of fiscal 2026, which surpassed the Zacks Consensus Estimate by 2.1% and came ahead of management’s guidance of 93-95 cents. Moreover, the bottom line increased 26.3% on a year-over-year basis.

CrowdStrike’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.5%.

The company’s third-quarter revenues of $1.23 billion surpassed the Zacks Consensus Estimate of $1.21 billion. Moreover, the top line increased 22% year over year and surpassed management’s guidance of $1.21-$1.22 billion. The strong adoption of the Falcon platform and better sales execution mainly aided top-line growth in the fiscal third quarter.

CrowdStrike Price, Consensus and EPS Surprise

CrowdStrike price-consensus-eps-surprise-chart | CrowdStrike Quote

Top-Line Details of CrowdStrike

Subscription revenues (94.7% of the total revenues) jumped 21.4% year over year to $1.17 billion. Professional services revenues (5.3% of the total revenues) increased 38.1% year over year to $65.5 million.

As of Oct. 31, 2025, annual recurring revenues (ARR) were $4.92 billion, up 23% year over year. The company added $265.3 million to its net new ARR in the reported quarter.

CrowdStrike’s subscription customers, who adopted six or more cloud modules, represented 49% of the total subscription customers, those with seven or more cloud modules accounted for 34% and those with eight or more cloud modules represented 24% as of Oct. 31, 2025.

CrowdStrike’s Operating Details

CrowdStrike’s non-GAAP gross profit increased 22.9% to $967.8 million in the fiscal third quarter from $787.6 million in the year-ago quarter. The non-GAAP gross margin remained flat at 78%.

The non-GAAP subscription gross profit soared 22.2% year over year to $942.3 million, while the gross margin expanded 100 basis points (bps) to 81% year over year. The non-GAAP professional gross profit increased 55.3% to $25.5 million, while the gross margin expanded 400 bps to 39% on a year-over-year basis.

CrowdStrike’s total non-GAAP operating expenses increased 19.8% to $703.2 million from $586.9 million reported in the year-ago quarter. As a percentage of revenues, non-GAAP operating expenses decreased to 57% from 58.1% in the year-ago quarter.

Non-GAAP sales and marketing expenses jumped 20.3% year over year to $402.6 million. Non-GAAP research and development expenses climbed 23.3% year over year to $232.4 million. Non-GAAP general and administrative expenses increased 6.9% year over year to $68.3 million.

The non-GAAP operating income increased 31.8% to $265.6 million. The non-GAAP operating margin for the quarter contracted 100 bps year over year to 21%.

CrowdStrike’s Balance Sheet & Cash Flow

As of Oct. 31, 2025, cash and cash equivalents were $4.80 billion. CrowdStrike had a long-term debt of $745.1 million.

In the fiscal third quarter, CrowdStrike generated operating and free cash flows of $397.5 million and $295.9 million, respectively.

CrowdStrike Initiates Q4 and Raises FY26 Guidance

CrowdStrike initiated guidance for the fiscal fourth quarter. For the fiscal fourth quarter, CrowdStrike anticipates revenues between $1.29 billion and $1.30 billion. The non-GAAP operating income is expected in the band of $315.4-$319.4 million. Non-GAAP net income is forecasted in the range of $282.1-$286.6 million. The company expects non-GAAP earnings per share in the band of $1.09-$1.11 per share. The consensus mark for fiscal fourth-quarter revenues and non-GAAP earnings is pegged at $1.29 billion and $1.09 per share, respectively.

For fiscal 2026, CrowdStrike now expects revenues between $4.797 billion and $4.807 billion compared with the previous guidance of $4.749-$4.805 billion. The non-GAAP operating income for fiscal 2025 is now projected in the band of $1.036-$1.04 billion, up from the previous guidance of $1-$1.04 billion.

For fiscal 2026, the company now expects non-GAAP net income in the range of $949.6-$954 million, up from the prior guidance of $922.4-$954 million. Non-GAAP earnings per share are anticipated in the band of $3.70-$3.72, up from the prior estimate of $3.60-$3.72. The consensus mark for fiscal 2026 revenues and non-GAAP earnings is pegged at $4.78 billion and $3.67 per share, respectively.

CrowdStrike’s Zacks Rank & Stocks to Consider

Currently, CrowdStrike carries a Zacks Rank #3 (Hold).

Advanced Energy Industries (AEIS), Amphenol (APH) and Logitech International (LOGI) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Advanced Energy Industries, Amphenol and Logitech International sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Advanced Energy Industries’ 2025 earnings has been revised upward by 10 cents to $6.23 per share over the past seven days and suggests a year-over-year increase of 67.9%. Advanced Energy Industries shares have jumped 82.6% year to date.

The Zacks Consensus Estimate for Amphenol’s 2025 earnings has moved upward by 7 cents to $3.29 per share in the past 30 days, calling for a year-over-year surge of 74.1%. Amphenol shares have soared 103.8% year to date.

The Zacks Consensus Estimate for Logitech International’s fiscal 2026 earnings has been revised upward by 2.4% to $5.61 per share in the past 30 days, suggesting a year-over-year increase of 15.9%. Logitech International shares have surged 42.1% year to date.

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