CrowdStrike Holdings announced on November 25, 2025 that its Charlotte AI platform has achieved Federal Risk and Authorization Management Program (FedRAMP) High Authorization, the most stringent federal cloud‑security certification. The approval allows the company to offer its AI‑native security services to federal, state, and local government agencies under the highest security requirements for cloud services.
FedRAMP High is a critical regulatory endorsement that opens the federal market to CrowdStrike’s Falcon platform. The certification expands the company’s public‑sector footprint, a segment that represents a significant portion of its overall security‑cloud business and is a key growth area for the firm’s AI‑driven solutions.
In its Q4 FY2025 earnings release, CrowdStrike reported total revenue of $1.06 billion, up 25% year‑over‑year, and non‑GAAP earnings per share of $1.03, beating the consensus estimate of $0.86 by $0.17. The revenue growth was driven by strong demand in the Next‑Gen SIEM, Cloud Security, and Identity Protection segments, while the earnings beat reflected disciplined cost control and a favorable mix of high‑margin AI‑platform contracts.
The company’s quarterly results also highlighted a 97% gross retention rate and 23% annual recurring revenue growth to $4.24 billion, underscoring customer stickiness and the scalability of its AI‑native offerings. Segment‑level revenue growth was supported by a 25% increase in commercial cloud deployments and a 52% rise in government‑sector revenue, demonstrating broad‑based strength across both commercial and public‑sector customers.
Looking ahead, CrowdStrike guided FY2026 revenue of $4.74 billion to $4.81 billion, slightly above the consensus estimate of $4.74 billion, but projected adjusted EPS of $3.33 to $3.45, a miss of about $0.98 per share versus the consensus of $4.43. Management cited higher investment in AI capabilities and modest cost inflation as reasons for the guidance miss, signaling caution about near‑term profitability while maintaining confidence in long‑term growth.
Investors reacted to the EPS guidance miss, which outweighed the positive earnings beat and the FedRAMP High authorization. The regulatory milestone is a tailwind for future government‑sector revenue, but the guidance miss highlights headwinds that could temper short‑term profitability expectations.
Michael Sentonas, CrowdStrike’s president, said the FedRAMP High approval “enables government agencies to deploy Charlotte AI in GovCloud, automating high‑impact workflows with the expertise of the industry’s best SOC operators, stopping sophisticated threats at the speed of AI.” George Kurtz, founder and CEO, noted that the Q4 results “deliver $224 million of net new ARR, bringing our ending ARR to $4.24 billion and reinforcing our trajectory toward a $10 billion ARR goal.”
The FedRAMP High authorization strengthens CrowdStrike’s public‑sector position and supports its AI‑centric strategy, but near‑term profitability concerns remain due to the FY2026 EPS guidance miss and ongoing investment in AI capabilities.
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