CrowdStrike’s annual recurring revenue (ARR) growth reaccelerated in fiscal Q3, breaking a trend of declining ARR over the past two years. Net new ARR soared 73% to $265 million, total ARR climbed 23% to $4.92 billion, and revenue increased by 22% to $1.23 billion, exceeding expectations.

The company credited the strong growth to its Falcon Flex licensing model, leading to more customers trying its next-gen AI solutions. Customers adopting Falcon Flex ended the quarter with $1.35 billion in ARR, more than tripling year over year.

CrowdStrike raised its fiscal 2026 revenue guidance slightly to between $4.8 billion and $4.81 billion, with adjusted EPS guidance between $3.70 to $3.72. For Q4, adjusted EPS is expected to be $1.09 to $1.11 on revenue of $1.29 billion to $1.3 billion.

Despite the positive growth, CrowdStrike’s stock still trades at a high valuation, caution is advised. The company continues to see strong momentum in its cybersecurity offerings but the high valuation may deter some investors. CrowdStrike’s ARR growth is accelerating, but the stock’s multiple may not justify the current rate of growth.

Read more at Yahoo Finance: As Growth Accelerates, Is It Time to Buy CrowdStrike Stock?