Shares in CrowdStrike Holdings Inc. sagged more than 2% in late trading today after the cybersecurity company reported earnings and revenue beats in its second quarter but fell short of expectations for its third-quarter outlook.

For the quarter that ended on July 31, CrowdStrike reported adjusted earnings per share of 93 cents, up from 88 cents in the second quarter of the previous fiscal year, on revenue of $1.17 billion, up 21% year-over-year. Both figures were ahead of the 83 cents per share and revenue of $1.15 billion expected by analysts.

As of the end of the quarter, CrowdStrike had $4.66 billion in annual recurring revenue, up 20% year-over-year. Net cash from operations came in at $332.8 million, up from $326.6 million in the second quarter of the previous fiscal year, and the company was sitting on a record $4.97 billion in cash and cash equivalents as of July 31.

Business highlights in the quarter included CrowdStrike’s May integration of the Falcon platform with Nvidia Enterprise AI Factory, bringing enterprise-grade protection directly into artificial intelligence infrastructure and model workflows. That was followed in June by an expansion of Falcon Cloud Security. CrowdStrike partnered with Nvidia to deliver full lifecycle protection for large language models through integrations with Nvidia NIM microservices and NeMo Guardrails Safety, extending Falcon’s reach from AI model build phases through runtime deployment.

June 16 saw the launch of Falcon for AWS Security Incident Response at the annual Amazon Web Services re:Inforce conference. The AI-powered offering, available via AWS Marketplace, accelerates detection and containment of incidents in AWS environments, reducing cost and response times for customers. Later in the same month, CrowdStrike announced enhancements for Falcon Exposure Management with AI-driven features such as Asset Criticality scoring and Client-Side Attack Path Analysis.

In July, CrowdStrike introduced agentic-AI security tools to the AWS Marketplace, including falcon-mcp, a Model Context Protocol server connecting AI agents to Falcon telemetry and a new AI Red Team Services offering to proactively test AI defenses.

CrowdStrike rounded out the quarter with enhancements to Falcon Cloud Runtime Security that included stronger container-escape prevention and expanded protections for Kubernetes and Docker workloads.

“As AI transforms the enterprise, CrowdStrike enables organizations to confidently embrace their AI future from development to deployment, from cloud to endpoint and from human to agent,” founder and Chief Executive George Kurtz said in the company’s earnings release.

For its fiscal 2026 third quarter, CrowdStrike expects adjusted earnings per share of 93 to 95 cents on revenue of $1.208 billion to $1.218 billion. The earnings outlook was ahead of the 91 cents per share expected by analysts, but the revenue outlook fell short of an expected $1.23 billion.

For the full year, the company expects adjusted earnings per share of $3.60 to $3.72 on revenue of $4.76 billion to $4.8 billion. The earnings outlook was ahead of an expected $3.51 per share, while revenue at the midpoint was in line with an expected $4.78 billion.

Daniel Bernard, chief business officer of CrowdStrike, spoke with theCUBE, SiliconANGLE Media’s livestreaming studio, in July, when he discussed how the company sees cybersecurity innovation “hitting warp speed” with agentic AI:

Photo: Sundry Photography/Adobe Stock