CrowdStrike Delivers Strong Quarter, Eyes Growth with Onum Acquisition

CrowdStrike (CRWD) posted a strong second quarter for fiscal 2026, beating Wall Street expectations on both earnings and revenue. 

The cybersecurity leader reported adjusted earnings of $0.93 per share, topping analyst estimates of $0.83, as revenue rose 21% year-over-year to $1.17 billion.

A standout figure was net new annual recurring revenue (ARR), which surged to a record $221 million, up from $194 million in the prior quarter. Total ARR climbed to $4.66 billion, representing 20% year-over-year growth. This recovery signals renewed customer momentum following last year’s global IT outage, which had briefly dampened expansion.

CrowdStrike also generated record free cash flow of $284 million—about one-quarter of revenue—underscoring the strength of its subscription-driven business model. Operating income reached $255 million, or 22% of revenue, while gross margins remained a healthy 78%.

Guidance Stays Conservative, But Growth Signals Build
Despite the strong quarter, management struck a cautious tone on near-term revenue. For the third quarter, CrowdStrike guided revenue between $1.21 billion and $1.22 billion, just below consensus estimates of $1.23 billion. Full-year revenue expectations were reaffirmed at $4.75–$4.81 billion, reflecting 20–22% growth.

The cautious outlook stems largely from the company’s Customer Commitment Packages (CCPs), introduced after the 2024 outage to reassure clients with incentives such as credits and extended terms. These measures are expected to weigh on revenue by $10–$15 million per quarter until they taper off in early fiscal 2027.

Still, management is confident about a return to faster growth. Executives project net new ARR will rise about 40% year-over-year in the second half of fiscal 2026, signaling stronger enterprise demand and easing headwinds ahead.

 
Strategic Expansion with Onum Deal
Alongside earnings, CrowdStrike announced a $290 million acquisition of Onum Technology, a Madrid-based startup specializing in real-time telemetry pipeline management. The move bolsters CrowdStrike’s Falcon platform with advanced data ingestion and in-pipeline detection capabilities, enabling faster threat response and lower storage costs—areas where traditional security systems often struggle.

CEO George Kurtz described the acquisition as fitting CrowdStrike’s “sweet spot” M&A strategy, targeting companies at the right stage for integration and shareholder value creation. Onum’s technology also strengthens CrowdStrike’s push into AI-driven security operations, where greater volumes of security data enhance the company’s competitive moat.

Conclusion
CrowdStrike’s second-quarter results highlight both resilience and strategic intent. While near-term revenue guidance reflects caution tied to legacy support programs, record ARR growth, strong cash generation, and the Onum acquisition point to an accelerating long-term trajectory. As enterprises continue consolidating their security tools onto unified platforms, CrowdStrike’s Falcon ecosystem appears well-positioned to capture that demand. For investors, the company’s fundamentals suggest that the rebound from last year’s outage is gaining traction, setting the stage for renewed growth in the year ahead.

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