CrowdStrike Q3 Earnings Beat Estimates, Revenues Increase Y/Y

Core Insights - CrowdStrike Holdings, Inc. reported non-GAAP earnings per share of 96 cents for Q3 fiscal 2026, exceeding Zacks Consensus Estimate by 2.1% and management's guidance of 93-95 cents, with a year-over-year increase of 26.3% [1] - The company's Q3 revenues reached $1.23 billion, surpassing the Zacks Consensus Estimate of $1.21 billion and management's guidance of $1.21-$1.22 billion, reflecting a 22% year-over-year growth [2] Revenue Breakdown - Subscription revenues, accounting for 94.7% of total revenues, increased by 21.4% year over year to $1.17 billion, while professional services revenues rose by 38.1% to $65.5 million [3] - As of October 31, 2025, annual recurring revenues (ARR) were $4.92 billion, up 23% year over year, with $265.3 million added in net new ARR during the quarter [3] Customer Adoption - As of October 31, 2025, 49% of subscription customers adopted six or more cloud modules, 34% adopted seven or more, and 24% adopted eight or more [4] Operating Performance - Non-GAAP gross profit increased by 22.9% to $967.8 million, with a gross margin remaining flat at 78% [5] - Non-GAAP subscription gross profit rose by 22.2% to $942.3 million, with the gross margin expanding by 100 basis points to 81% [6] - Total non-GAAP operating expenses increased by 19.8% to $703.2 million, but as a percentage of revenues, they decreased to 57% from 58.1% [7] Financial Metrics - Non-GAAP operating income increased by 31.8% to $265.6 million, with the operating margin contracting by 100 basis points to 21% [8] - As of October 31, 2025, cash and cash equivalents stood at $4.80 billion, with long-term debt of $745.1 million [9] - Operating and free cash flows generated in Q3 were $397.5 million and $295.9 million, respectively [9] Future Guidance - For Q4 fiscal 2026, CrowdStrike anticipates revenues between $1.29 billion and $1.30 billion, with non-GAAP operating income expected in the range of $315.4-$319.4 million [11] - The company raised its FY26 revenue guidance to between $4.797 billion and $4.807 billion, with non-GAAP net income projected at $949.6-$954 million [12][13]