CrowdStrike Holdings, Inc. Q2 FY2026 earnings call

• Reacceleration was the key theme in Q2, with net new ARR reacceleration a quarter early. Record Q2 net new ARR of $221 million, ending ARR of $4.66 billion (20% YOY growth), record Q2 free cash flow of $284 million (24% of revenue), and record operating income of $255 million (22% of revenue) were highlighted. - AI-driven demand for the Falcon platform was a major driver, with cloud, next-gen identity, and next-gen SIEM solutions growing significantly. - The company announced the intent to acquire Onum, a leading data pipeline platform, to complement the next-gen SIEM. - Falcon NextGen SIEM had stellar growth of over 95% YOY, and Charlotte AI grew more than 85% over Q1. - Falcon Flex adoption continued to grow, with over 1,000 customers and strong reflex activity. - Ecosystem partnerships were highlighted, with partners sourcing over 60% of Q2 new business.

In the second quarter, CrowdStrike achieved several key segment performances. Record Q2 net new ARR was $221 million, with ending ARR reaching $4.66 billion, growing over 20% year over year. Cloud, next-gen identity, and next-gen SIEM platform solutions had ending ARR of more than $1.56 billion, growing over 40% year over year. Falcon NextGen SIEM saw year-over-year growth of more than 95% with ending ARR of more than $430 million. Falcon Shield (next-gen identity protection) had ending ARR of more than $435 million, growing over 21% year over year. Total cloud ending ARR exceeded $700 million, growing more than 35% year over year. Additionally, the company surpassed the 1,000 Falcon Flex customer milestone, with the average Flex customer representing more than $1 million of ending ARR.

• Back half net new ARR is expected to grow at least 40% versus last year. - Revenue guidance for FY2026 is in the range of $4.7495 to $4.8055 billion, reflecting 20% to 22% growth over the prior fiscal year. - Non-GAAP income from operations is expected to be between $1.001 and $1.0401 billion for FY2026. - Non-GAAP net income attributable to CrowdStrike Holdings, Inc. is expected to be between $922.4 and $954 million for FY2026, with non-GAAP net income per share in the range of $3.60 to $3.72.

Q: Andy Nowinski asked about the partner rebate program and if it's factored into revenue guidance.

A: Bert Podbere stated that the ARR is a key leading indicator, they're pleased with net new ARR performance and Q3 pipeline, guidance assumes back half net new ARR growth of at least 40% vs last year, and the impact of CCP and special partner programs is expected to subside starting in 2026.

Q: Matt Hedberg asked about targeting in the identity market versus pure plays.

A: George Kurtz said they were ahead of the curve in identifying identity as a key element in 2020, their next-gen identity solutions like Shield have seen fantastic uptake, and customers are demanding alternatives to legacy solutions.

Q: Saket Kalia asked about customers who bought customer care packages and net retention in the second half.

A: George Kurtz mentioned 95% plus renewal rates for modules, CCP packages will roll into renewals, and Flex is a big part of the strategy as it leveraged the CCP program to seed the market.

Q: Brian Essex asked about ONAM and how it competes against legacy solutions.

A: George Kurtz said ONAM is a great value prop for customers with in-pipeline detection, disruptive pricing in next-gen SIEM as customers don't pay to take data out of their platform, and it's very scalable.