CrowdStrike Earnings Top Estimates, Raises Outlook
CrowdStrike earnings reported a record Q2 and raised fiscal 2027 revenue guidance, prompting traders to reprice growth exposure amid AI security demand.
KEY TAKEAWAYS
- CrowdStrike beat Q2 FY27 estimates with revenue $1.47 billion and adjusted EPS $0.31.
- Management raised FY27 revenue outlook and lifted net new ARR growth guidance by 630 basis points to 34%.
- The quarter delivered record operating cash flow $530.3 million and free cash flow $377.4 million.
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CrowdStrike Holdings, Inc. (Nasdaq: CRWD) reported a record second quarter for fiscal 2027 on Aug. 26, prompting management to raise its full-year revenue outlook as demand for its cloud-delivered Falcon platform and AI-related security needs accelerated.
Record Quarter and Cash Flow
For the quarter ended July 31, 2026, CrowdStrike reported total revenue of $1.47 billion, up 26% year over year, driven by subscription revenue of $1.40 billion, which rose 27%. Annual recurring revenue (ARR) reached $5.84 billion, a 25% increase, supported by record net new ARR of about $333 million and net new ARR growth accelerating to 51% year over year. ARR from customers adopting Falcon Flex exceeded $2.29 billion, doubling from the prior year.
Adjusted (non-GAAP) earnings per share were $0.31, surpassing the consensus estimate of $0.29. Non-GAAP operating income totaled $371.6 million, with net income of $322.9 million. On a GAAP basis, the company swung to net income of $5.3 million after reporting a loss from operations of approximately $33.2 million, an improvement from the prior-year quarter.
CrowdStrike generated record operating cash flow of $530.3 million and free cash flow of $377.4 million. The company held $5.01 billion in cash and cash equivalents at quarter-end, which management highlighted as a notable achievement.
Raised Outlook and Demand Drivers
Following the strong quarter, CrowdStrike raised its full-year fiscal 2027 revenue outlook to a range of $5.99 billion to $6.01 billion and increased its adjusted EPS guidance to $1.25–$1.26. The company also raised its net new ARR growth guidance by 630 basis points to 34% year over year at the midpoint.
Management attributed the stronger results and outlook to continued adoption of the Falcon platform and rising AI-related cybersecurity threats. CEO George Kurtz described the quarter as “the best quarter in CrowdStrike’s history,” citing record Falcon Flex results and accelerating net new ARR growth.
The upgraded guidance and elevated ARR trends reflect the company’s shift toward larger, recurring subscription revenue and improved cash conversion during the reported period.
