CrowdStrike Holdings Inc (NASDAQ:CRWD) reported second quarter fiscal 2026 results that drew a favorable reaction from Wedbush analysts, who highlighted the cybersecurity firm’s platform growth and AI-driven expansion.
The company posted total revenue of $1.168 billion, above the Street estimate of $1.150 billion and its guidance range of $1.145 billion to $1.152 billion.
Annual recurring revenue (ARR) reached $4.66 billion, slightly above the $4.64 billion estimate, with $221 million in net new ARR, up from $193.6 million in the prior year.
Adjusted operating margin came in at 21.8%, surpassing the guidance range of 19.8% to 20.3% and the Street’s 20.1% estimate.
Adjusted earnings per share (EPS) were $0.93, above the $0.82 to $0.84 guidance range and the Street’s $0.83 estimate.
Additionally, CrowdStrike reaffirmed its fiscal 2026 revenue guidance of $4.7435 billion to $4.8055 billion.
It guided operating income in the range of $1.0001 billion to $1.0401 billion and EPS of $3.60 to $3.72, both above Street estimates of $997.2 million and $3.52, respectively.
The Wedbush analysts emphasized that CrowdStrike’s acceleration in net new ARR is expected to continue throughout the second half of fiscal 2026.
Management projects 40% year-over-year growth in second-half NNARR, driven by Cloud, Identity, and SIEM products alongside the Charlotte AI platform.
“Total ARR of $4.66 billion came in slightly above the Street’s estimate, driven by NNARR of $221 million,” the analysts wrote, noting that the company surpassed 1,000 Falcon Flex customers, with each averaging over $1 million in ARR.
They also highlighted strong adoption of Next-Gen SIEM at approximately 95% growth year-over-year, Cloud, and Identity solutions, which are fueling platform expansion.
Wedbush also cited CrowdStrike’s acquisition of Onum, which will enhance Next-Gen SIEM by supporting earlier pipeline detection, data streaming, and high-fidelity data filtration.
The analysts maintained an ‘Outperform’ rating while lowering their price target from $575 to $525 to reflect a reduced multiple.
They noted that CrowdStrike remains “the gold standard in the cybersecurity space” and continues to position itself as a second- and third-order beneficiary of AI-driven growth, with significant long-term potential.
CrowdStrike shares added 2.2% at $432 post-earnings.