CrowdStrike said its second‑quarter FY2026 results were the best in company history. Net new annual recurring revenue (ARR) reached $333 million, a 51% year‑over‑year increase. Gross margin stood at 81%, with the company targeting a long‑term range of 82%‑85%.
Free cash flow margin is projected to hit 32.5% by FY2028. The firm also accelerated its long‑term ARR objectives, moving the $10 billion target to FY2030 (from FY2031) and the $20 billion target to FY2035 (from FY2036). Achieving the $20 billion goal will require 3.5% penetration of its addressable market, while current penetration averages 4%.
Product‑level ARR figures showed strong growth: cloud ARR topped $900 million, up 29% YoY; next‑gen SIEM ARR approached $700 million, up 60%; next‑gen identity ARR neared $600 million, up 33%; exposure‑management ARR is close to $300 million and growing faster quarter‑over‑quarter. The endpoint business has accelerated for four consecutive quarters.
Flex licensing now accounts for 40% of total ARR, up from 34% a year earlier, and is used by more than 2,900 customers. The ten largest Flex deals in the quarter were all Flex contracts, and re:Flex commitments generated a 53% uplift, with customers typically returning after eight months. Multi re:Flex deals deliver a similar 53% uplift.
CrowdStrike’s market capitalization stands at $218 billion. Revenue has risen 24% over the past twelve months, and the stock has delivered a 96% total return over the last year and a 77% gain year‑to‑date as of September 2026.
The company now offers 34 security modules, up from 26 previously. Its Project QuiltWorks initiative, involving 25 hand‑picked companies, has generated roughly $400 million in pipeline contract value. Professional services represent about 5% of the profit‑and‑loss statement.
Executive commentary emphasized AI’s role. CFO Burt Podbere said the AI‑Driven Detection and Response (AIDR) category will outgrow traditional endpoint detection and response (EDR). He also defended pricing, noting the firm’s margins are “best in breed.” Anthropic’s CEO called CrowdStrike “the security operating system of our business.”
