CrowdStrike(CRWD 0.68%) reported fiscal second quarter 2026 results on August 27, 2025, delivering record net new Annual Recurring Revenue (ARR) of $221 million (non-GAAP) and total revenue of $1.17 billion, both exceeding guidance (non-GAAP). The company achieved over 20% year-over-year ending ARR growth to $4.66 billion (non-GAAP), highlighted a strong reacceleration in customer demand, and announced its intent to acquire Onum to enhance next-gen Security Information and Event Management (SIEM) capabilities, as disclosed during the earnings call. Key insights below cover growth sustainability, strategic expansion in AI and identity, and the material impact of the Falcon Flex model. The fiscal year 2026 period ends on January 31, 2026.
Net new ARR surges as CRWD exceeds targets
ARR for next-generation cloud, identity, and SIEM solutions climbed above $1.56 billion (non-GAAP), up more than 40% year over year, contributing to total revenue growth of 21% year over year. Falcon Flex customers surpassed 1,000, and record operating income (non-GAAP) reached $255 million, or 22% of revenue. Earlier ARR guidance had anticipated this level of acceleration in the second half of fiscal 2026, but the company achieved it a quarter ahead of plan.
"Highlights included one, record Q2 net new ARR of $221 million, double-digit millions ahead of our expectations, showcasing accelerating net new ARR. Two, ending ARR of $4.66 billion, growing more than 20% year over year. Three, record Q2 free cash flow of $284 million or 24% of revenue. Four, record operating income of $255 million or 22% of revenue. Five, total revenue growth of 21% year over year, reaching $1.17 billion and exceeding the high end of our guidance. Six, cloud, next-gen identity, and next-gen SIEM platform solutions are now more than $1.56 billion in ending ARR, growing more than 40% year over year. And seven, we surpassed the 1,000 Falcon Flex customer milestone, with the average Flex customer representing more than $1 million of ending ARR."
-- George Kurtz, Chief Executive Officer and Founder
This performance materially validates CrowdStrike’s long-term platform consolidation thesis and underscores the sustainability of strong revenue and profitability metrics (non-GAAP), even as operating scale increases.
AI-native platform and expanded M&A bolster competitive moat
The company completed multiple product launches, reported Charlotte AI SOC adoption rising more than 85% quarter over quarter, and announced an agreement to acquire Onum, whose technology increases customer data control and accelerates SIEM adoption. Next-gen SIEM ARR jumped over 95% year over year to more than $430 million, while partner-sourced business accounted for over 60% of new wins, deepening ecosystem integration.
"Today, we're incredibly excited to announce intent to acquire Onum, a leading data pipeline platform. Built on a proprietary stateless in-memory architecture, we believe ONEM is the perfect complement to next-gen SIEM. It offers unparalleled speed, scale, and efficiency in onboarding to next-gen SIEM while giving customers control of their data. Onum will bring Falcon's AI-powered detections closer to third-party data sources in the pipeline, starting analysis before data even enters the Falcon platform."
-- George Kurtz, Chief Executive Officer and Founder
Strategic investment in real-time data ingestion and AI-powered automations positions CrowdStrike to disrupt legacy SIEM segments and further entrench its AI-enabled security operating system, supporting durable competitive differentiation.
Falcon Flex model accelerates adoption and drives uplift
Utilization of Falcon Flex contracts exceeded 75% across the customer base, with the rate of ‘reflexes’ (customers expanding early within their contract) nearly doubling to almost 10% of Flex users in just five months. Flex-associated ARR uplifts approached 50% on average, highlighting deepening customer engagement and increased multi-module adoption.
"Reflexes on average are yielding a nearly 50% uplift in flex customer ending ARR illustrating the strength of the Falcon platform and the power of our game-changing licensing model. Reflex activity gives us conviction our net new ARR acceleration highlighting the difference between a one-time ELA and the recurring flex model."
-- George Kurtz, Chief Executive Officer and Founder
Compressing adoption timelines for new modules, and supporting higher ARR expansion, distinguishes CrowdStrike’s growth path from traditional enterprise license agreements (ELA).
Looking Ahead
Management guided for at least 40% year-over-year net new ARR growth in the second half of fiscal 2026, with ending ARR for fiscal 2026 expected to increase by more than 22% (non-GAAP). Fiscal third quarter 2026 revenue is forecast in the $1.208 billion-$1.218 billion range (20%-21% year over year), and full-year revenue in the $4.75 billion-$4.81 billion range (20%-22% year over year) for fiscal 2026. Free cash flow margin is expected to exceed 30% for the full year fiscal 2027, and the path to $10 billion in ending ARR by fiscal 2031 remains intact.
