Summary
CrowdStrike ended fiscal 2026 with accelerating demand. Fourth-quarter revenue reached $1.31 billion, up 23.3% from the prior-year quarter. Full-year revenue was $4.81 billion, up 21.7%. Ending ARR hit $5.25 billion as of January 31, 2026, up 24% year over year. Net new ARR was $331 million in the quarter, up 47%, and $1.01 billion for the full year. Falcon Flex ARR reached $1.69 billion, up over 120% year over year. Module adoption rates were 50% for six or more modules, 34% for seven or more, and 24% for eight or more. Management raised its fiscal 2027 ARR outlook to $6,465.8 million to $6,516.4 million and set first-quarter fiscal 2027 ARR guidance at $5,501.8 million to $5,503.8 million.
Profitability improved sharply in the quarter. Gross profit was $993.7 million, up 26.4%, and gross margin was 76.1%, up 1.9 percentage points from the prior-year quarter. Operating income was $13.8 million, a swing to profit from a loss in the prior-year quarter. Operating margin was 1.1%, up 8.7 percentage points. Net income was $59.4 million, a swing to profit from a loss in the prior-year quarter. The full year still showed red ink. Operating loss for fiscal 2026 was $293.3 million, wider than the prior-year loss. Net loss was $162.5 million, wider than the prior-year loss. Diluted EPS for fiscal 2026 was -$0.65, down from the prior-year figure. Full-year gross margin was 74.7%, down 0.3 percentage points, and full-year operating margin was negative 6.1%, down 3.2 percentage points.
Cash generation remained a bright spot. Fourth-quarter operating cash flow was $497.9 million, up 44.0%, while capital expenditures were $102.5 million, up 17.5%. For the full year, operating cash flow was $1.61 billion, up 16.7%, and capital expenditures were $302.1 million, up 18.5%. Deferred revenue stood at $4.75 billion, up 27.5% from the prior-year quarter. Remaining performance obligations were $9.00 billion, up 38.5%. Those figures point to a large backlog and strong billing momentum. The company also repurchased 143,801 shares of Class A common stock after January 31, 2026 and through March 2, 2026 at an average price of $351.97 per share for $50.6 million. About $949.4 million remained available under the repurchase program.
Guidance for the next quarter and the full fiscal year calls for continued growth. For the first quarter of fiscal 2027, revenue is guided to $1,360.0 million to $1,364.0 million. For fiscal 2027, revenue is guided to $5,867.6 million to $5,927.6 million. Non-GAAP income from operations is guided to $308.0 million to $310.4 million for the first quarter and $1,422.2 million to $1,462.2 million for the full year. Non-GAAP net income attributable to CrowdStrike is guided to $275.2 million to $277.1 million for the first quarter and $1,241.0 million to $1,271.1 million for the full year. Non-GAAP diluted EPS is guided to $1.06 to $1.07 for the first quarter and $4.78 to $4.90 for the full year. The company assumes a 21.0% non-GAAP tax rate. Separately, a change in accounting estimate will extend the amortization period for initial contract acquisition commissions from four to five years beginning in fiscal 2027. That change is expected to improve fiscal 2027 income from operations by $85.0 million to $95.0 million.
Risks remain. The July 19 Incident continues to drive legal and professional services expenses and has caused longer sales cycles and delayed customer purchasing decisions. Customer commitment packages have included discounting, additional modules, professional services, flexible payment terms, and subscription period extensions. Those packages have increased contraction and reduced upsell dollar values. Competition in cybersecurity is intense, and the company faces execution risks from rapid growth and from integrating recent acquisitions. CrowdStrike closed the SGNL acquisition on February 20, 2026 for $627.9 million in cash, net of $9.4 million of cash acquired, plus $8.9 million in replacement equity awards. It closed the Seraphic acquisition on February 3, 2026 for $327.4 million in cash, net of $1.1 million of cash and restricted cash acquired, plus $13.9 million in replacement equity awards. Macroeconomic conditions, inflation, geopolitical uncertainty, and volatility in the banking and financial services sector could also affect results. The 10-K also revised prior-period financial statements to correct an immaterial stock-based compensation error. The revision had no impact on cash flows or total stockholders' equity.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.31B | $1.23B | +5.8% | $1.06B | +23.3% |
| Gross profit | $993.7M | $926.4M | +7.3% | $784.5M | +26.7% |
| Gross margin | 76.1% | 75.1% | +1.1 pp | 74.1% | +2.0 pp |
| Research & development | $356.4M | $347.6M | +2.5% | $315.1M | +13.1% |
| Sales & marketing | $463.6M | $481.0M | -3.6% | $409.5M | +13.2% |
| General & administrative | $159.9M | $167.3M | -4.4% | $145.2M | +10.1% |
| Total operating expenses | $979.9M | $995.9M | -1.6% | $869.8M | +12.7% |
| Operating income (loss) | $13.8M | -$69.4M | +119.9% | -$85.3M | +116.2% |
| Operating margin | 1.1% | -5.6% | +6.7 pp | -8.1% | +9.1 pp |
| Net income (loss) | $61.5M | -$34.0M | +280.8% | -$92.7M | +166.3% |
| Net margin | 4.7% | -2.8% | +7.5 pp | -8.8% | +13.5 pp |
| Diluted EPS | $0.25 | -$0.14 | +$0.39 | -$0.38 | +$0.63 |
| Net retention rate | 115.0% | — | — | 112.0% | +3.0 pp |
Risks
The July 19 Incident has harmed and is expected to continue harming business, sales, customer and partner relations, and reputation. Customer commitment packages with discounts, subscription period extensions, and flexible payment terms have resulted and are expected to continue to result in increased contraction and decreased upsell dollar values.
CrowdStrike faces securities, derivative, and consumer class action litigation and government inquiries from the July 19 Incident. Authorities may seek undertakings, injunctive relief, consent decrees, or penalties, and customers or third parties may seek indemnification, increasing costs and diverting management.
Customers may fail to renew, renew for shorter terms, purchase fewer cloud modules or endpoints, or accept smaller contract values. The July 19 Incident and customer commitment packages, including elongated subscription terms, have increased contraction and reduced upsell dollar values.
The company has a history of losses and may not sustain profitability. Net loss attributable to CrowdStrike widened to $162.5 million in FY2026 from $15.2 million in FY2025, and accumulated deficit was $1.3 billion as of January 31, 2026.
Competitors may more successfully incorporate AI into their products, gain or leverage superior access to certain AI technologies, and achieve higher market acceptance of their AI solutions. Market conditions may change rapidly due to AI advancements.
As a cybersecurity provider, CrowdStrike is specifically targeted by sophisticated adversaries; bad actors leveraged the July 19 Incident through phishing emails posing as CrowdStrike support. A compromise of internal systems or source code could reduce solution effectiveness and harm reputation.
Sales cycles are long and unpredictable, especially for large enterprises and government entities. The July 19 Incident has caused delays in creating sales opportunities and longer sales cycles, and uncertain economic or geopolitical conditions, trade policies, and tariffs may lengthen them further.
Deteriorating economic conditions, inflation, interest rate policies, tariffs, and geopolitical uncertainty may cause customers to delay or cut security and IT spending, disproportionately affecting cloud-based security solutions. The risk factor also cites volatility in banking and financial services.
Approximately 33% of total revenue came from international customers in FY2026. International expansion exposes CrowdStrike to tariffs, data localization and digital sovereignty requirements, anti-bribery laws, foreign exchange controls, and tax risks.
CrowdStrike depends on CEO George Kurtz and other key technical, sales, and management personnel, and competition for cybersecurity and sales talent is intense. The Strategic Plan could negatively affect the ability to recruit and retain skilled personnel.
An immaterial error related to stock-based compensation expense in prior periods was discovered in Q4 FY2026 and required revisions to fiscal 2025 and 2024 results. Weak internal controls could cause restatements, reporting delays, or loss of investor confidence.
The OBBBA and OECD Pillar Two global minimum tax of 15% may adversely impact the provision for income taxes, net income, and cash flows. Certain net operating loss and R&D credit carryforwards, including California amounts, could expire unused.
Post year-end, CrowdStrike agreed to acquire SGNL.AI for $627.9 million in cash and Seraphic for $327.4 million in cash, following other fiscal 2026 acquisitions. Integration may divert management, dilute stockholders, or expose it to unknown liabilities and accounting risks.
The Falcon platform depends on third-party data centers, primarily AWS, and CrowdStrike's colocation facilities. Service interruptions or capacity constraints could harm customer relationships because customers have low tolerance for downtime.
SaaS KPIs
All quarters →Free Cash Flow Margin
Non-GAAP Operating Margin
Net New ARR
Free Cash Flow
Non-GAAP Subscription Gross Margin
Dollar-Based Net Retention Rate
Module Adoption Rate (6+ modules)
Module Adoption Rate (7+ modules)
ARR
Module Adoption Rate (8+ modules)
Summary, forecast, risks and KPIs are extracted from CrowdStrike Holdings, Inc.'s SEC filings for Q4 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.