CrowdStrike Holdings, Inc.

(NASDAQ Global Select)
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Very Bullish +82

CrowdStrike (CRWD) Earnings & Analysis — stockrow

Acquisition Earnings report Guidance raised AI-generated analysis

📈 CrowdStrike reported Q2 FY2027 revenue of $1.5 billion, a 25.8% increase year-over-year, beating consensus estimates.

💰 Adjusted EPS reached $0.31 versus the consensus of $0.29, while GAAP EPS was $0.01.

📉 Gross margins improved to 74.6%, and operating margins expanded from -9.02% to -2.26%.

💵 Free cash flow surged to $376.3 million, marking a 32.0% growth compared to the previous year.

🚀 Subscription revenue grew by 27% as the company added new customers and sold additional sensors.

🛡️ The 'Flex-first' sales strategy added over 935 Falcon Flex accounts in the quarter.

☁️ Cloud, identity, and next-generation SIEM products combined for a record net new ARR of $2.1 billion.

🤝 The partner ecosystem generated nearly $400 million in total contract-value pipeline.

🔮 Management raised FY2027 net new ARR guidance to $1.35 billion-$1.36 billion, up 34% year-over-year.

📅 CrowdStrike expects FY2027 revenue between $5.99 billion and $6.01 billion.

🤝 The company plans to acquire XM Cyber technology assets expected to close in H2 FY2027.

📊 Ending ARR for the quarter reached a record $5.84 billion.

Bullish Signals
  • CrowdStrike beat revenue and adjusted EPS estimates, reporting $1.5B in revenue and $0.31 adjusted EPS.
  • Subscription revenue grew 27% year-over-year, driven by new customer additions and upselling to existing clients.
  • Gross margins expanded to 74.6%, reflecting successful cloud-optimization efforts and operational efficiencies.
  • Free cash flow increased significantly to $376.3 million, a 32% jump from the prior year.
  • The 'Flex-first' sales approach proved effective, adding 935+ Falcon Flex accounts with high ARR uplifts.
  • Cloud, identity, and next-gen SIEM segments delivered record combined net new ARR of $2.1 billion.
  • Management raised full-year FY2027 revenue guidance to $5.99B-$6.01B and net new ARR to $1.35B-$1.36B.
  • The company maintains a strong expectation of at least 30% free-cash-flow margin for the fiscal year.
Full Analysis
CrowdStrike (CRWD) reported strong financial results for the quarter ended July 2026, with revenue reaching $1.5 billion, representing a 25.8% year-over-year increase. The company beat analyst consensus estimates on both revenue and adjusted earnings per share (EPS), reporting an adjusted EPS of $0.31 compared to the expected $0.29. This performance was driven by robust demand across its cybersecurity portfolio as customers expanded their attack surfaces due to AI adoption. Key metrics highlighted include a 27% increase in subscription revenue and a rise in gross margins to 74.6%. The company generated $376.3 million in free cash flow, up 32% from the prior year. Management noted that their 'Flex-first' sales approach successfully added over 935 Falcon Flex accounts, with converting customers seeing an average ARR uplift of more than 40%. Looking ahead, CrowdStrike raised its full-year fiscal 2027 guidance for net new ARR to a range of $1.35 billion to $1.36 billion and total revenue to $5.99 billion to $6.01 billion. The company also announced plans to acquire XM Cyber technology assets in the second half of FY2027, which will not be included in current ARR or revenue guidance but signals continued strategic expansion.