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CrowdStrike: CrowdStrike's Q4 FY '26 Results: A Strong Finish to a Record Year

CrowdStrike delivered exceptional Q4 FY '26 results, exceeding expectations across all guided metrics. Revenue growth was robust, with net new ARR reaching $331 million, up 47% year-over-year, and ending ARR growing 24% to $5.25 billion. Operating income reached a record $326 million for the quarter, and $1.05 billion for the year, while free cash flow was $376 million for the quarter and $1.24 billion for the year. EPS came in at $1.12, slightly above estimates of $1.1. The company's strong financial performance was driven by its AI-powered Falcon platform, with over 1,800 distinct AI applications detected on enterprise devices.

CRWD

USD 407.68

4.15%

A-Score: 5.1/10

Publication date: March 4, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Record Net New ARR: $331 million (47% YoY growth), with ending ARR reaching $5.25 billion (24% YoY growth).
  • Free Cash Flow Milestone: $376 million in Q4 and $1.24 billion annually (26% of revenue), driven by operating leverage.
  • Operating Income Growth: $326 million in Q4 and $1.05 billion annually, reflecting margin expansion.
  • Falcon Flex Traction: Over 1,600 customers and $1.69 billion ARR (120% YoY growth), highlighting diversified adoption.
  • Next-Gen Security Growth: Identity, cloud, and SIEM segments grew 45% YoY to $1.9 billion ARR, underscoring strategic focus on AI-driven threats.

Segment Performance

The Falcon Flex subscription model saw significant traction, with over 1,600 customers, and ARR exceeding $1.69 billion, up over 120% year-over-year. Next-Gen Identity, cloud, and Next-Gen SIEM businesses collectively grew more than 45% year-over-year, reaching over $1.9 billion in ending ARR. The endpoint business accelerated for the second consecutive quarter, driven by AI-related threats.

Growth Prospects

CrowdStrike guides for 22.5% net new ARR growth for FY '27, driven by strong momentum, broad-based demand, and record Q1 pipeline growth of 49% year-over-year. The company is well-positioned to benefit from the growing need for AI security, with its cloud security posture management (CSPM) technology and other acquired technologies like Falcon Shield providing a potent offering for customers. As George Kurtz noted, "AI deployment will require protection, identity security, and compliance," and CrowdStrike is poised to capitalize on this trend.

Valuation

CrowdStrike's valuation metrics indicate a high-growth expectation. The stock trades at a P/S Ratio of 21.36 and an EV/EBITDA of -2511.57, suggesting that investors are pricing in significant revenue growth. The company's ROE and ROIC are currently negative, but this is expected to improve as the business continues to scale. With a strong track record of execution and a robust growth outlook, CrowdStrike appears to be well-positioned to drive long-term value creation.

CrowdStrike's A-Score