The cybersecurity giant saw annual recurring revenue related to Flex deals surge 120 percent, year over year, to reach $1.69 billion as of the end of its latest fiscal year, Kurtz said Tuesday.
CrowdStrike drove accelerated consolidation on its Falcon platform with strong assistance from MSSPs as well as the cybersecurity giant’s Falcon Flex subscription model during its latest fiscal year, CrowdStrike co-founder and CEO George Kurtz said Tuesday.
Speaking with Wall Street analysts during CrowdStrike’s quarterly call, Kurtz said the company is “turbo charging” its growth with the help of Falcon Flex—a model that has been popular with solution and service provider partners who have spoken with CRN.
[Related: ‘Flexing’ Its Muscle: CrowdStrike CEO Kurtz Says It’s The First ‘Hyperscaler Of Security’]
Falcon Flex provides customers with discounts for making pre-commitments to deploy multiple products from the broad Falcon platform, ultimately enabling upsized deals, executives have said.
For CrowdStrike’s fiscal year 2026, which ended Jan. 31, the company saw ending annual recurring revenue (ARR) related to Flex deals surge by 120 percent year over year to reach $1.69 billion, Kurtz disclosed.
“We now have more than 1,600 customers who have adopted Falcon Flex and [CrowdStrike] added more than 350 Flex customers in Q4,” he said.
CrowdStrike also got a major boost during its latest fiscal year from a substantial expansion with MSSP partners, according to Kurtz.
The vendor’s MSSP business “continues to grow at a rapid pace,” he said during the call Tuesday. CrowdStrike has ultimately “gone from a sub-$100 million MSSP business to more than $1.3 billion” in just over three years, Kurtz said.
Overall, when it comes to CrowdStrike’s broad partner base, “our partner go-to-market [efforts] delivered beyond expectations this past year,” he said.
For CrowdStrike’s fiscal year 2026 on the whole, the company became the “fastest and only pure play cybersecurity software company” to surpass $5 billion in ARR. The vendor reported that ending ARR for the fiscal year climbed 24 percent to reach $5.25 billion.
Key growth segments for CrowdStrike included Falcon Next-Gen SIEM, which jumped 75 percent year over year to $585 million in ending ARR, Kurtz said. The vendor’s Falcon Next-Gen Identity Security business, meanwhile, rose 34 percent from the same period a year ago, reaching $520 million in ending ARR.
Notably, for the company’s fiscal fourth quarter, CrowdStrike’s core endpoint security business saw an accelerated growth rate for the second quarter in a row, Kurtz said. The growth continues to be driven by the role of endpoint devices as the “epicenter of AI usage,” he said.
In total for CrowdStrike’s fiscal Q4, revenue grew 23 percent to $1.31 billion, just above the Wall Street analyst consensus estimate. The company also reported non-GAAP net income of $1.12 per diluted share, beating analyst expectations by 2 cents per diluted share.
During the call Tuesday, Kurtz also addressed recent investor fears that AI will deliver massive disruption around the software industry.
The CrowdStrike CEO said it’s clear that there the “AI revolution [is] creating two disparate groups of software companies,” with one group “now existentially vulnerable.” Such companies only offer “nice-to-have technologies that are productivity features and point products,” Kurtz said.
The second group, however, will “thrive” in the AI era, he said.
“These are mission-critical, trusted infrastructure technologies necessary for global continuity with deep IP,” Kurtz said. “These technologies are net data creators producing novel, fresh and proprietary data that doesn’t exist elsewhere—data that is fuel for the agentic business outcomes.”
