AI-driven demand resilience highlights CrowdStrike's better-than-expected Q3 performance and raised full-year guidance.

Network security company CrowdStrike Holdings Inc. (CRWD.US) announced better-than-expected third quarter performance, while also raising its fiscal year 2026 performance guidance, highlighting the strong market demand for its increasingly rich artificial intelligence (AI)-driven network security product portfolio. According to the financial report, for the third quarter of the fiscal year 2026 ending October 31, the company's revenue was $1.23 billion, a 22% increase year-over-year, exceeding analysts' expectations of $1.21 billion. Adjusted earnings per share were $0.96, surpassing the expected $0.94. Subscription revenue increased by 21% to $1.17 billion. Annual Recurring Revenue (ARR) grew by 23% year-over-year to $4.92 billion, with a net addition of $265.3 million in ARR for the third quarter. Net cash generated from operating activities was $397.5 million, with free cash flow reaching $295.9 million. As of the end of the quarter, CrowdStrike held $4.80 billion in cash and cash equivalents. CrowdStrike's founder and CEO George Kurtz stated, "With the right architecture, products, and execution, CrowdStrike has become an enabler of the security AI transformation. The third quarter was one of the best performing quarters in the company's history." Looking ahead, CrowdStrike expects full-year revenue to be between $4.797 billion and $4.807 billion, up from the previous guidance range of $4.749 billion to $4.805 billion, with analysts generally expecting $4.784 billion. The full-year adjusted earnings per share guidance has also been raised from $3.60 to $3.72 to $3.70 to $3.72, higher than the market expectation of $3.67. Additionally, the company expects fourth-quarter revenue to be between $1.29 billion and $1.30 billion, while the market expects $1.293 billion; the expected adjusted earnings per share are $1.09 to $1.11, higher than the market's expectation of $1.08. Currently, businesses continue to face threats from criminal hackers and cyber spies, with some attackers starting to use AI technology to enhance their attacks. This has driven a sustained strong demand for cybersecurity, with companies increasing investment in AI security systems to address the growing complexity of digital threats. CrowdStrike's competitors include Palo Alto Networks Inc. (PANW.US) and SentinelOne Inc. (S.US), with these companies fiercely competing for market share. As an important initiative to integrate security operations and attract customers seeking integrated solutions, the company has been promoting AI-driven features on its Falcon platform, including detection and classification tools introduced in September. Chief Financial Officer Burt Podbere stated, "As customers consolidate onto the Falcon platform, we are leveraging the demand for AI-driven capabilities, driving sales channel scale to historical highs. Given this strong growth momentum, we have decided to raise our 2026 performance guidance." This optimistic outlook also signals a business upswing for the Texas-based company. Founded in 2011, CrowdStrike has grown to become one of the largest network security providers as organizations deal with increasingly complex cyberattacks and cloud migration needs. However, last year, the company's reputation was tarnished due to a defective software update that caused widespread Windows system failures, impacting operations in hospitals, banks, and airports. After the financial report was released, CrowdStrike's stock price fell by about 1.5% in after-hours trading. The company's stock price has risen by approximately 51% so far this year, outperforming most competitors.