CrowdStrike Holdings closed out its fiscal second quarter with what CEO George Kurtz called the best quarter in the cybersecurity company's history, sending shares surging in after-hours trading and triggering a round of price-target increases from Wall Street banks on Thursday.

The Austin-based endpoint security firm reported revenue of $1.47 billion for the quarter ended July 31, up 26% year-over-year and above the $1.44 billion analysts had expected, according to the company's earnings filing with the SEC. Non-GAAP earnings came in at 31 cents per share, edging past the 29-cent consensus estimate.

Annual recurring revenue reached $5.84 billion, up 25% year-over-year, while net new ARR hit a record $332.8 million for the quarter. The company's newer consumption-based bundling model, Falcon Flex, ended the quarter with $2.29 billion in ARR, up 101% from a year earlier — a sign that customers are increasingly consolidating security spending onto CrowdStrike's platform rather than splitting budgets across point products.

"Q2 was the best quarter in CrowdStrike's history," Kurtz said, citing record Falcon Flex results as the company raised its full-year net-new-ARR growth guidance by 630 basis points.

CFO Burt Podbiere highlighted the "record net new ARR of $333 million" alongside improving cash generation: operating cash flow came in at $530.3 million and free cash flow at $377.4 million for the quarter. Looking ahead, CrowdStrike guided to third-quarter revenue of $1.523 billion to $1.529 billion and raised its full-year revenue outlook to a range of $5.99 billion to $6.01 billion.

Shares, which had pulled back roughly 13% over the prior week heading into the report, jumped as much as 11% after hours and were still up nearly 9% in premarket trading Thursday, putting the stock within striking distance of the record above $225 it touched earlier this month. The stock is up 61% year-to-date, according to Yahoo Finance market data.

Wall Street responded quickly. Citi raised its price target to $260 from $250 — implying roughly 37% upside from Wednesday's close — while Morgan Stanley lifted its target to $238 from $227 and reiterated a Buy rating, according to CNBC's rundown of analyst reaction. Of the 55 analysts covering the stock, 45 now rate it Buy or Strong Buy.

The results come as enterprises continue consolidating cybersecurity spending around AI-driven threat detection, a trend CrowdStrike has leaned into heavily with its Falcon platform. The company's next test comes at its Fal.Con user conference in Las Vegas next month, where it's expected to unveil further AI security products to a sold-out crowd of more than 10,000 attendees.