CrowdStrike is best-positioned in cybersecurity with superior revenue and backlog expansion as it encroaches on market share from competitors like Palo Alto Networks and Fortinet. AWS selected Falcon Next-Gen SIEM as the default SIEM for millions of customers in the Security Hub console, opening CrowdStrike to significant new customer acquisition opportunities. The company leverages AI capabilities and platform consolidation to drive net new ARR growth.
Cyborg Score Rationale
The company achieved record Q3 net new ARR of $265 million with 73% year-over-year growth, reaching $4.92 billion in ending ARR with 23% YoY growth. Record operating income of $265 million (21% of revenue) and free cash flow of $296 million (24% of revenue) demonstrate elite profitability. The company shows strong fundamentals recovery post-2024 incident.
Top Insights
The company delivered 22% revenue growth in Q3 with broad-based acceleration across endpoints, cloud, SIEM, and identity
More than $1.35 billion in ending ARR comes from Falcon Flex subscriptions, growing over 200% year-over-year
The company maintained sustained 97% gross retention with consistently strong net retention as the market consolidates on Falcon
The U.S. Federal government's Zero Trust mandate is a multi-year tailwind for CrowdStrike, which has the highest levels of FedRAMP certification
Named Competitors
Prisma Cloud — Enterprise cloud and threat management
FortiGate — Network security and firewall solutions
Sentinel One — Autonomous endpoint protection platform
Zscaler — Cloud-native security platform
Recent Developments
(February 2026) Stock recovered from early 2026 SaaSpocalypse sell-off with institutional investors rotating back to sticky incumbents
(February 2026) Signed memorandum of understanding with Saudi Aramco to advance cybersecurity transformation aligned with Vision 2030
(October 2025) Reported record Q3 FY2026 results with $265M net new ARR and record free cash flow of $296M
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