CrowdStrike Holdings Inc (NASDAQ:CRWD) shares edged higher afterhours as the cybersecurity firm reported better-than-expected financial results for the third quarter.
For the quarter ending October 31, revenue was up 22% year-over-year at $1.23 billion, ahead of estimates of $1.21 billion. Subscription revenue was $1.17 billion, up 21%.
The company grew annual recurring revenue (ARR), the annualized value of its subscription-based contracts, by 23% to $4.92 billion, with $265.3 million of net new ARR added during the quarter.
Adjusted earnings per share (EPS) were a record $0.96, up from $0.76 in the year-ago period and beating the Wall Street consensus of $0.94.
"Q3 was one of our best quarters in company history,” CEO George Kurtz said in a statement. “Our single platform strategy coupled with the Falcon Flex subscription model unlocks consolidation, positioning CrowdStrike as the operating system of cybersecurity.”
CrowdStrike also raised its full-year guidance, now expecting revenue in the range of $4.797 billion to $4.807 billion, compared to earlier guidance of $4.749 billion to $4.806 billion. This is in line with the Street consensus of $4.78 billion.
Adjusted income is expected to be in the range of $3.7 to $3.72 million, up from earlier projections of $3.6 to $3.72 million.
“We are capitalizing on the AI-driven demand environment as customers consolidate on the Falcon platform, driving our pipeline to an all-time high,” CrowdStrike CFO Burt Podbere said. “Given this momentum, we are raising our fiscal year 2026 guidance.”