This article first appeared on GuruFocus.
CrowdStrike (NASDAQ:CRWD) reports its Q2 fiscal 2026 results after the U.S. market close on Wednesday, August 27. Wall Street analysts are expecting a non-GAAP EPS of approximately $0.83 on revenue of $1.15 billion, which would mark growth slipping below 20% for the first time. The stock has been highly volatile, but shares remain up more than 20% year to date. CrowdStrike is still dealing with the aftershocks of the July 2024 outage, which pressured margins as it launched the Customer Choice Program. That makes this report a critical test.
For investors, annual recurring revenue (ARR) will be the number one thing to watch. In Q1, ARR grew 22% to $4.44 billion, with net new ARR of $194 million. Investors want to see signs of reacceleration and broad adoption of the Falcon platform, including offerings like FalconFlex and identity security.
After the outage, profitability and free cash flow are also in focus. The company posted a loss but has since made a major push to retain customers while improving operating margins at the same time. Investors will be watching to see if it can improve these while navigating the post-outage environment.
Finally, Q3 and full-year guidance could determine how the stock trades. Management has been cautious in its recent guidance, citing added uncertainty. What investors want now is a more confident outlook for the second half of the year, which could ease investor concerns and provide a catalyst for the stock.
