CrowdStrike Holdings Inc. ($CRWD) Stock: Record Q2 Growth with Strong ARR Momentum

TLDR

Q2 revenue rose 21% to $1.17 billion, exceeding analyst expectations.

Net new ARR hit $221 million, driving total ARR to $4.66 billion.

Free cash flow reached a record $284 million, 24% of revenue.

Non-GAAP net income was $237.4 million, or $0.93 per diluted share.

GAAP net loss stood at $77.7 million due to higher expenses.

CrowdStrike Holdings Inc. (NASDAQ: CRWD) closed at $422.61 on August 27, 2025, before slipping to $410.10 in pre-market trading.

CrowdStrike Holdings, Inc. (CRWD)

The company released its Q2 fiscal 2026 earnings on August 27, reporting a mixed performance of record revenue and cash flow alongside a GAAP net loss.

Strong Revenue and ARR Growth

Total revenue for the quarter reached $1.17 billion, up 21% year over year and above analyst forecasts of $1.15 billion. Subscription revenue contributed $1.10 billion, also up 20%. Net new annual recurring revenue (ARR) hit a record $221 million, boosting total ARR to $4.66 billion, an increase of over 20% from last year.

The Falcon platform continued to see strong adoption, with over 1,000 Falcon Flex customers reached. ARR from cloud, next-gen identity, and SIEM products surpassed $1.56 billion, growing at more than 40% year over year.

$CRWD | CrowdStrike is -7.5% after-hours

🔹 EPS: $0.93 vs. $0.83 est. ✅
🔹 Revenue: $1.17B vs. $1.15B est. ✅

Key takeaways:
🔸 Subscription rev: +20% YoY
🔸 ARR: +20% YoY
🔸 Cash: $4.97B
🔸 Acquired Onum Tech
🔸 FY EPS outlook: ~$3.66 ($3.50 prior)
🔸 Q3 rev outlook: ~$1.21B pic.twitter.com/DtYrq1fApX

— CMG Venture Group (@CmgVenture) August 27, 2025

Profitability and Cash Flow

On a non-GAAP basis, operating income climbed to a record $255 million, representing 22% of revenue. Non-GAAP net income rose to $237.4 million, or $0.93 per diluted share, ahead of expectations of $0.83 per share. Free cash flow also set a record at $284 million, equal to 24% of revenue.

GAAP results painted a less favorable picture. The company reported a net loss of $77.7 million, or $0.31 per diluted share, compared with a $47 million profit in the same quarter last year. Expenses tied to outages and strategic plans weighed heavily on the quarter’s profitability.

Strategic Moves and Recognition

CrowdStrike announced an agreement to acquire Onum Technology Inc., aiming to strengthen its Next-Gen SIEM platform by reducing data storage costs and accelerating response times. The company also launched Falcon Next-Gen Identity Security and CrowdStrike Signal, an AI-powered detection system targeting threats that often evade traditional solutions.

Recognition for CrowdStrike remained strong across industry assessments. The company was again named a Leader in the 2025 Gartner Magic Quadrant for Endpoint Protection and also secured leadership spots in IDC and GigaOm security reports. Its collaboration with Amazon Web Services (AWS) and integrations with NVIDIA highlight the firm’s commitment to AI-powered security advancements.

Outlook and Market Performance

For Q3, CrowdStrike guided revenue between $1.21 billion and $1.22 billion, implying 20–21% growth. Full-year fiscal 2026 revenue is projected at $4.75 billion to $4.81 billion, maintaining growth between 20% and 22%.

Despite an 18% decline in shares this quarter, CRWD remains up 22% year to date and 56% over the past year, significantly outperforming the S&P 500.

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