CrowdStrike Valued for Decades of Impeccable Performance

CrowdStrike Holdings, Inc., one of the leading cybersecurity companies, has announced its FQ2'26 results, showcasing a robust performance and impressive growth.

The company achieved a net new ARR of $221 million, pushing its ending ARR to $4.66 billion, marking a 20% year-over-year (YoY) growth. This growth was driven by various factors, including a 35% YoY growth in its Cloud Security business, which is now a $700 million venture for CrowdStrike.

One of CrowdStrike's standout products, the LogScale next-gen SIEM product, is growing at a staggering 95% clip, contributing significantly to the overall strong growth rates.

The company's financials also reflect massive adjusted operating margins of nearly 22%.

CrowdStrike's CEO, George Kurtz, led the company to a Non-GAAP EPS of $0.93 for FQ2'26, beating expectations by $0.10.

Despite these impressive figures, CrowdStrike's FQ3 revenue guidance is slightly below consensus estimates at $1.21 to $1.22 billion, compared to the expected $1.23 billion.

The net ARR growth rate for CrowdStrike has slowed from the previous ~32% to below 21% in the last quarter. This slowdown is attributed to the IT outage the company experienced.

Looking ahead, the consensus analyst estimates forecast minimal boosts in the revenue growth rates with a goal for FY27 of nearly 22% growth and the potential to reach 23% by FY29.

CrowdStrike's stock currently trades at 19x FY27 sales targets and 93x EPS targets, reflecting investor confidence in the company's future growth potential.

Despite the slower growth rate in Q3, the stock market has spun this as bullish due to the potential for a slight uptick in the current quarter. In fact, CrowdStrike's stock is currently higher than prior to the IT outage and has recently hit an all-time high of $518.

With annual sales approaching $5 billion, CrowdStrike is already one of the biggest cybersecurity companies. However, the ability to grow at a fast clip at scale could become ever more difficult. The company's long-term goal is to reach $10 billion in ARR by FY31, which would lead to $10 billion in revenues.

Despite the challenges, CrowdStrike's stock continues to trade at nearly 11x those sales targets, indicating a belief in the company's ability to meet and exceed these goals.

In conclusion, CrowdStrike's FQ2 results demonstrate the company's continued growth and profitability, despite some recent challenges. With a strong product portfolio and a focus on innovation, CrowdStrike is well-positioned to meet its long-term goals and continue to be a key player in the cybersecurity landscape.