CrowdStrike Holdings has announced its third-quarter earnings, revealing results that slightly exceeded analyst expectations. The cybersecurity company, based in Sunnyvale, California, reported its earnings for the quarter ending in October after the market’s close on Tuesday. The firm reported an adjusted earnings per share of 96 cents, a 3% increase, alongside a 22% rise in revenue that reached $1.23 billion.
Analysts surveyed by FactSet had forecasted earnings of 94 cents per share with revenue estimated at $1.214 billion.
A critical focus for Wall Street analysts regarding CrowdStrike is its annual recurring revenue (ARR), a key financial measure indicative of growth in subscription services. Analysts are particularly attuned to trends in “net new” ARR, especially in light of disruptions from a global IT outage that took place earlier this year, impacting customer contract renewals. In the wake of this incident, which was linked to a software upgrade in July 2024, many clients have sought discounts on contract renewals to mitigate business disruption costs.
In the third quarter, CrowdStrike reported that its total ARR surged by 23% to $4.92 billion, surpassing the average forecast of $4.895 billion. Notably, net new ARR reached $265 million, a remarkable 73% increase that exceeded expectations of $238.8 million.
Looking ahead, CrowdStrike has projected revenue for the upcoming quarter, which concludes in January, to land between $1.29 billion and $1.30 billion, in comparison to the consensus estimate of $1.294 billion.
In terms of market performance, CrowdStrike’s stock experienced a slight increase, nearing the $519 mark. Prior to the earnings report, the stock has shown a robust rise, up 49% over the course of 2025. In the competitive landscape, CrowdStrike faces rivalry from companies such as Palo Alto Networks, SentinelOne, and Microsoft within the endpoint security market, which focuses on detecting malware across various devices that access corporate networks.
CrowdStrike is actively developing a comprehensive cybersecurity platform that not only oversees endpoints but also encompasses web/email gateways, web application firewalls, and cloud business workloads. Currently, the stock holds a Composite Rating of 84 out of a maximum of 99. However, it also carries an Accumulation/Distribution Rating of D-minus, based on veteran analysis of price and volume trends over the past 13 weeks.
In the broader industry context, the Computer Software-Security group ranks highly among the 197 groups monitored, signaling strong performance within the sector.
