Cybersecurity firm CrowdStrike (CRWD) reported strong fiscal third-quarter results with support from rising AI-driven demand. The company also lifted its Fiscal 2026 revenue outlook.
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The company reported adjusted earnings per share (EPS) of $0.96, which topped Wall Street forecasts of $0.94 and compared favorably to $0.76 in the prior-year quarter. Revenue of $1.23 billion came ahead of consensus expectations of $1.21 billion. Sales in the quarter were up 22% from a year earlier.
Importantly, ending annual recurring revenue (ARR) reached $4.92 billion, up 23% year-over-year. Of the total amount, $265.3 million was net new ARR added in the quarter.
Investors must also note that cash and equivalents stood at $4.8 billion, providing ample liquidity for growth investments.
CFO Burt Podbere noted that the company exceeded expectations across all guided metrics, with pipeline activity reaching an all-time high. He pointed to strong demand for AI-driven security consolidation as a key driver of growth.
Q4 and Fiscal 2026 Outlook
For Q4 FY26, CrowdStrike expects revenue between $1.29 billion and $1.30 billion and adjusted EPS in the range of $1.09 to $1.11. Analysts currently expect $1.29 billion in revenues and $1.08 in adjusted EPS.
At the same time, CRWD raised the full Fiscal 2026 revenue guidance to between $4.80 billion and $4.81 billion, up from $4.75 billion and $4.81 billion. Also, it raised the lower end of its adjusted EPS outlook to $3.70-$3.72 from $3.60-$3.72 previously. The analysts’ expectations stand at $4.78 billion in revenues and $3.68 in adjusted EPS.
Management also increased expectations for net new ARR growth in the second half of Fiscal 2026 to at least 50% year-over-year, and projects another 20% growth in Fiscal 2027.
Is CRWD Stock a Buy or Sell?
Currently, Wall Street has a Moderate Buy consensus rating on CrowdStrike stock based on 25 Buys, 10 Holds, and one Sell recommendation. The average CRWD stock price target of $552.35 indicates a 6.65% upside potential.
It’s worth noting that these estimates will likely change following today’s earnings report.
