CrowdStrike entered the quarter ended April 30, 2026 with annual recurring revenue of $5.51 billion, up from $4.44 billion a year earlier, a 24% increase. Net new ARR added in the quarter was $255.8 million, compared with $193.8 million in the prior-year quarter.
The company said its dollar-based net retention rate remained “strong” in the three months ended April 30, 2026, though it did not provide the exact percentage in the excerpt. It also said ARR growth reflected its subscription base, with revenue recognized ratably over contract terms that are generally one to three years.
CrowdStrike’s business model remains centered on its Falcon platform, sold through a partner-first subscription model to enterprises and public-sector customers. Subscriptions are priced on usage metrics including per-endpoint, per-identity, per-cloud sensor, per-user, per-device, and per-gigabyte of daily ingestion. The company also sells incident response and proactive professional services, which it says are primarily a cross-sell path into subscriptions.
The company highlighted Falcon Flex, its enterprise licensing model, as a key part of its sales strategy. Under that structure, customers commit to a broader platform investment upfront and then draw down that commitment across multiple products over time.
CrowdStrike said the July 19, 2024 incident continued to affect operations. It said it has incurred, and expects to continue to incur, “significant” legal, professional services and other general and administrative expenses tied to the event. It also said the incident has caused delays in creating sales opportunities, longer sales cycles, and delayed customer purchasing decisions.
The company said customer commitment packages introduced after the incident have included discounting, additional modules, professional services, flexible payment terms, or subscription period extensions. Those packages have resulted, and are expected to continue to result, in increased contraction because of elongated subscription terms and decreased upsell dollar values.
CrowdStrike also said it revised previously issued unaudited condensed consolidated financial statements for the three months ended April 30, 2025 to correct an immaterial error discovered in the fourth quarter of fiscal 2026.
On the operating side, the company said subscription revenue is its core line item, driven by the number of subscription customers, endpoints per customer, and cloud modules included in each subscription. Professional services revenue comes from incident response, forensic and malware analysis, attribution analysis, operationalizing the Falcon platform, residency programs, and active defense services. The market has reacted to these announcements by moving the company's shares -4.06% to a price of $717.23. For more information, read the company's full 10-Q submission here.
