CrowdStrike Holdings, Inc. Q3 FY2026 earnings call

• Record quarter highlights: net new ARR, ending ARR, free cash flow, and operating income all set records.
• AI-driven market forces: AI expanding attack surface, democratization of destruction with AI-powered adversaries, and need for a single cybersecurity platform.
• Single platform strategy: CrowdStrike's unified platform including NextGen SIEM, identity business, cloud security, and endpoint business.
• Successes: NextGen SIEM had record net new ARR, identity business performed well with PAM and Falcon Shield, cloud security saw growth with runtime protection, endpoint business accelerated due to AI adoption, Falcon Flex driving platform consolidation, strong ecosystem partnerships including with AWS, F5, Kroll, etc.

CrowdStrike Holdings, Inc. had a record third quarter. Key highlights include: record Q3 net new ARR of $265 million, growing 73% year over year; ending ARR of $4.92 billion, accelerating to 23% year-over-year growth; record Q3 free cash flow of $296 million (24% of revenue); all-time record operating income of $265 million (21% of revenue); broad-based ending ARR acceleration across cloud, next-gen identity, next-gen SIEM, and endpoint business; and more than $1.35 billion in ending ARR from accounts using the Falcon Flex subscription model, which grew over 200% year over year.

• Revenue guidance for FY 2026: total revenue expected to be in the range of $1.29 to $1.3 billion, reflecting 22 to 23% year-over-year growth. Non-GAAP income from operations expected to be $315 to $319 million, non-GAAP net income $282 to $287 million.
• Q4 free cash flow margin expected to be 27%, with approximately $33 million in cash payments for incident-related costs. Full-year FY 2026 free cash flow margin expected to be 25%.
• FY 2027 net new ARR growth expected to be at least 20% from increased FY 2026 net new ARR assumptions.

Q: Brian Essex asked about emerging segments' behavior and seasonality of net new ARR.

A: George Kurtz said emerging products performed fantastically, and Bert Podbere noted Pangea had de minimis impact on revenue and ARR.

Q: Saket Kalia asked about value capture in SIM displacements and legacy SIM renewals.

A: George Kurtz said customers are looking for better outcomes, faster results, and lower cost, with CrowdStrike offering disruptive pricing and leveraging existing EDR data.

Q: Matt Hedberg asked about observability and consolidation.

A: George Kurtz said CrowdStrike has technology for observability, leveraging existing data and agent technology.

Q: Gabriela Borges asked about Flex's impact on NRR.

A: Burt Podbere said Flex is designed for continuous net ARR and easier customer consolidation.

Q: Dan Ives asked about AI changing customer conversations.

A: George Kurtz said Charlotte AI is deeply embedded, moving beyond chatbots to actual work and differentiating CrowdStrike.

Q: Joseph Gallo asked about outsized growth products and AI in guidance.

A: George Kurtz highlighted next-gen SIM, cloud, and Falcon Shield as key areas.

Q: Fatima Boolani asked about partnership with AWS and other hyperscalers.

A: George Kurtz said the partnership with AWS is great, and CrowdStrike works with other players while supporting customers.

Q: Meta Marshall asked about core EDR acceleration and AI.

A: George Kurtz said AI adoption creates new risks and opportunities for endpoint protection.

Q: Patrick Colville asked about discounting levels.

A: George Kurtz said discounting is normal in business, and CrowdStrike is prudent in using tools to be competitive.

Q: Eric Heath asked about F5 partnership and expanding TAM.

A: George Kurtz said the partnership expands the endpoint TAM and opens up opportunities for protecting other appliances.

Q: Roger Boyd asked about Kroll partnership and MSP opportunity.

A: George Kurtz said the Kroll partnership opens market opportunities and accelerates penetration in the MSSP market.

Q: Tal Liani asked about verticals and NRR/GRR.

A: Burt Podbere said segmentation is agnostic, and NRR/GRR info will be provided at year-end.

Q: Jeff Hopson asked about buy vs build in AI.

A: George Kurtz said CrowdStrike is thoughtful about buying best-of-breed technologies and integrating them.

Q: Adam Borg asked about identity business maturity.

A: George Kurtz said the identity business is important, with focus on modern identity solutions and continued growth.