CrowdStrike Holdings, Inc. reported fiscal fourth‑quarter 2026 revenue of $1.31 billion, up 23% year‑over‑year from $1.06 billion in Q4 FY2025, and earnings per share of $1.12, a 1.8% beat over the consensus estimate of $1.10. GAAP net income reached $38.7 million, marking the company’s first GAAP‑profitable quarter, while free cash flow topped $376 million. Non‑GAAP operating margin expanded to 25% from 21% a year earlier, and the subscription gross margin hit a record 81%.
The company’s ending annual recurring revenue (ARR) hit $5.25 billion, the fastest growth for a pure‑play cybersecurity firm, driven by a record $1.01 billion of net new ARR in the year. Falcon Flex contributed $1.69 billion of ending ARR, reflecting the continued acceleration of its consumption‑based licensing model. Next‑Gen identity, cloud, and Next‑Gen SIEM businesses grew more than 45% year‑over‑year, reaching over $1.9 billion in ending ARR, while the Next‑Gen identity business ended FY2026 with more than $520 million of ending ARR, up 34% YoY.
Management guided fiscal 2027 revenue to $5.87‑$5.93 billion and Q1 FY2027 ARR to $5.50‑$5.51 billion, with a full‑year ARR outlook of $6.47‑$6.52 billion. The company also projected a free‑cash‑flow margin of 30%+ and a net new ARR growth rate of 40%+ in the second half of the fiscal year, underscoring confidence in continued AI‑driven demand and Falcon Flex momentum.
The modest EPS beat of 1.8% was largely attributable to disciplined cost control and a favorable product mix shift toward high‑margin Falcon Flex contracts, which offset modest increases in support and professional services costs. Revenue exceeded expectations by a narrow margin because of strong demand for AI‑enhanced threat detection and the company’s ability to capture market share in the cloud and identity segments, where it achieved double‑digit growth. The expansion of non‑GAAP operating margin reflects the company’s ability to scale its subscription business while maintaining pricing power, and the record gross margin indicates efficient cost management in delivering its software services.
"FY26 will go down in our history books as CrowdStrike's best year yet. We achieved $5.25 billion in ending ARR – the fastest and only pure‑play cybersecurity software company to achieve this milestone – driven by a record $1.01 billion of net new ARR, our first year exceeding $1 billion of net new ARR. We also delivered record operating and free cash flow for both the quarter and year," said CEO George Kurtz. "We delivered exceptional fourth quarter results and a record finish to the year, exceeding expectations across all guided metrics driven by continued Flex and re‑Flex momentum and strong organic growth across the platform," added CFO Burt Podbere.
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