In my last update back in March, I shared how I was giving CrowdStrike a grace period of two additional quarters to show signs of reacceleration. This would confirm my core thesis: that CrowdStrike remains the premier company in cybersecurity to invest in, thanks to its lightweight agent, AI-native platform, relentless innovation, and ability to consolidate fragmented security tools into a single, powerful solution.
Well, here we are—and the reacceleration has arrived a quarter early.
As George Kurtz, CrowdStrike's CEO and Founder, put it during the earnings call:
We've talked about reacceleration coming in the back half of this fiscal year. It's here now. I'm proud of CrowdStrike's ability to deliver reacceleration, our return to year-over-year net new ARR growth a quarter early. Our reacceleration is driven largely by AI-necessitated demand for the Falcon platform and stellar execution across the business.
This quarter's results underscore that thesis. CrowdStrike isn't just riding the AI wave; it's steering it, positioning itself as the foundational security layer for the agentic AI era.
Let's break it down.
If you haven't read my original deep dive on Crowdstrike, I recommend doing so before reviewing this update. It's essential reading for a thorough understanding of the company.
AI-Native Security Adoption and Consolidation
Platform adoption continues to deepen quarter over quarter: 48% of subscription customers now use 6+ modules, 33% use 7+, and 23% use 8+. Among customers with $100K+ in ending ARR, 60% have adopted 8+ modules—a new milestone that screams consolidation.
The three platform solutions driving AI-native security adoption and consolidation—Cloud Security, Next-Gen Identity, and LogScale Next-Gen SIEM—now combine for over $1.56 billion in ending ARR, growing more than 40% year-over-year.
Cloud Security: >$700 million ending ARR, up >35% YoY.
Next-Gen Identity: >$435 million ending ARR, up >21% YoY (including the new Falcon Shield launch).
LogScale Next-Gen SIEM: >$430 million ending ARR, up >95% YoY.
Charlotte AI (the agentic SOC analyst) grew >85% quarter-over-quarter.
These figures paint a picture of a company firing on all cylinders, with AI-driven demand fueling cross-selling and upsells.
Kurtz nailed the executive mindset:
As organizations of all sizes embrace AI transformation, I hear several thematic concerns from executives and Boards. One, where is shadow AI emerging in my business? Two, how do I control what data enters AI systems? Three, how do I control what AI systems can do in my enterprise? Which ultimately leads to the focal question of four, how do I secure AI agents? AI has made the role of CISOs and CIOs more complicated than ever.
Adversaries are weaponizing AI too. CrowdStrike's threat intelligence uncovered North Korean hackers using GenAI for deepfake interviews and fabricated resumes to infiltrate over 320 enterprises.
This isn't sci-fi; it's today's reality. Kurtz framed it starkly:
AI is accelerating every aspect of our society and revolutionizing the way we work, but it's also accelerating the adversary. I know all too well that there is no peace time in cybersecurity. The adversary never rests. The world is soon to embark on the largest arms race ever, the arms race over AI superiority.
CrowdStrike's response? Secure AI at every layer—from models and workloads to identities and endpoints.
Charlotte AI automates SOC workflows, turning days of investigation into hours, and is embedded across modules for out-of-the-box agentic security.
Conclusion
Growth is coming back, as Kurtz enthusiastically explained:
In light of the demand environment and our platform superiority, our guidance now assumes back half net new ARR will grow at least 40% versus last year.
Meanwhile, CFO Burt Podbere reaffirmed the long-term guidance:
We have a clear line of sight to well exceed the $5 billion ending ARR milestone by the end of FY26, achieving the ambitious goal we set in 2022 as we execute on our path to $10B in ending ARR by FY31.
My original thesis—that CrowdStrike's AI-native XDR platform creates a moat through data, speed, and enforcement—holds stronger than ever. The July 19 incident was disruptive, but its effects now seem to be in the rearview mirror.
As always, here is the “Deep Dive To Date” (DDTD), that is how the stock is performing since my initial deep dive. For Crowdstrike stock ($CRWD), the price on October 16th, when I published my analysis, was $304.97. As of this update, the price stands at $417.63, reflecting a
+37% DDTDStay tuned for the next update!
The content of this analysis is for entertainment and informational purposes only and should not be considered financial or investment advice. Please conduct your own thorough research and due diligence before making any investment decisions and consult with a professional if needed.