CrowdStrike delivered one of its strongest quarters to date in Q3 FY26, posting accelerating subscription growth, record cash flow, and robust demand across its endpoint, cloud, identity, and SIEM businesses. The company also raised full-year guidance, reflecting confidence in sustained enterprise spending and continued adoption of its Falcon platform. Shares moved modestly higher following the report as investors digested another quarter of consistent execution.
Q3 FY26 Results at a Glance
CrowdStrike reported third-quarter fiscal 2026 results on December 2, 2025. Key financial details from the company’s official earnings release (CrowdStrike Investor Relations) include:
Total revenue: $1.23 billion, up 22% year over year
Subscription revenue: $1.17 billion, up 21%
Net new ARR: $265 million, accelerating to 73% year-over-year growth
Ending ARR: $4.92 billion, up 23% year over year
Non-GAAP operating income: $264.6 million, a record for the company
Free cash flow: $296 million, also a record
Cash and equivalents: $4.80 billion
CEO George Kurtz called it “one of our best quarters in company history,” highlighting significant momentum from Falcon Flex subscriptions and broad-based platform adoption.
ARR Growth Accelerates
Annual Recurring Revenue remains the most closely watched metric for CrowdStrike given its subscription model. Q3 delivered a notable acceleration:
Ending ARR: $4.92 billion
Net new ARR: $265 million, the highest Q3 figure in company history
Growth was driven across:
Endpoint protection
Cloud security
Next-gen identity
Next-gen SIEM
Falcon Flex, the company’s flexible subscription model, surpassed $1.35 billion in ARR, more than tripling from the prior year.
Profitability and Cash Flow Strength
CrowdStrike continues to demonstrate growing operating leverage:
Non-GAAP operating income reached a record
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$264.6 million
Free cash flow margin improved to 24% of revenue
Operating cash flow totaled $398 million, another all‑time high
Even with elevated expenses tied to the July 19 security incident, CrowdStrike maintained strong financial resilience.
Updated Guidance for FY26
Management raised its full-year forecast based on pipeline strength and a favorable demand environment. Updated guidance includes:
FY26 revenue: $4.80–$4.81 billion
FY26 non-GAAP net income: $949.6–$954.0 million
Q4 revenue: $1.29–$1.30 billion
Q4 non-GAAP EPS: $1.09–$1.11
The company also reaffirmed expectations for 20% net new ARR growth in FY27, signaling continued confidence beyond the near term.
Stock Market Reaction
CrowdStrike shares moved higher in after-hours trading following the release, rising approximately 2–3% as investors responded positively to the combination of accelerated ARR, raised guidance, and strong cash generation. According to real‑time market data, the stock traded around $511 during the regular session after gaining earlier in the week.
While valuation remains elevated compared to cybersecurity peers, the quarter reinforced CrowdStrike’s position as one of the strongest growth compounders in large-cap software.
Bottom Line
CrowdStrike’s Q3 FY26 results showcased a company firing on all cylinders: accelerating ARR, record profitability, expanding cloud and identity traction, and rising customer consolidation on the Falcon platform. With heightened cybersecurity threats and increasing enterprise adoption of AI-driven security, the company continues to benefit from durable industry tailwinds.
Investor sentiment remains broadly positive as CrowdStrike enters the final quarter of its fiscal year with a strong pipeline and clear visibility into continued growth.