CrowdStrike (CRWD) Citi’s 2026 Global TMT Conference summary

Business performance and strategic highlights

• Achieved record Q2 results with best quarter in company history, driven by strong net new ARR, non-GAAP profitability, and free cash flow.

• Flex licensing model now accounts for nearly 40% of ARR mix, with over 2,900 customers and significant uplift from non-Flex to Flex contracts.

• Updated medium-term targets: $10B ARR by FY2030 and $20B ARR by FY2035, reflecting accelerated growth expectations.

• Major product growth in Next-Gen SIEM, Cloud, Next-Gen Identity, and Exposure Management, each showing strong year-over-year expansion.

• Professional services, though a small portion of revenue, serve as a strategic lead generator and cross-sell driver.

Product innovation and AI security

• Launched Guardian and announced SafeMind, with Guardian expected to drive near-term financial impact; AIDR category projected to surpass EDR.

• Exposure Management rapidly growing, with plans for increased disclosure as it approaches scale similar to Cloud and SIEM businesses.

• AI adoption is transforming both the threat landscape and internal operations, with AI tools used across sales, DevOps, R&D, and finance.

• Security needs for AI agents are driving customer demand for visibility, control, auditability, and cost management.

• Flex model enables rapid product adoption and multi-product engagement, with customers returning for additional purchases within months.

Go-to-market and partnerships

• QuiltWorks partner ecosystem has generated $400M in pipeline, expanding reach and strengthening alliances with 25+ companies.

• Strategic partnerships with hyperscalers like AWS, Azure, and GCP enable customers to retire hyperscaler spend toward security solutions.

• Flex model's success attributed to breadth of product portfolio and instant activation, with ratable revenue recognition simplifying financial modeling.

• Competitive landscape dominated by Microsoft, with Frontier labs seen as partners rather than threats due to unique data and integration advantages.