Latest quarter
CrowdStrike reported Q2 FY2027 revenue of $1.5 billion, up 25.8% from $1.2 billion a year earlier. CrowdStrike reported adjusted EPS of $0.31, compared with the consensus of $0.29, while its diluted EPS under GAAP was $0.01. The company reported revenue of $1.5 billion against consensus revenue of $1.4 billion, and its adjusted EPS and revenue were 6.90% and 2.15% above the consensus, respectively.
CrowdStrike’s 10-Q says subscription revenue increased 27% as it added customers and sold additional sensors and modules to existing customers, while professional-services revenue increased 7% as service hours increased. The filing reports that gross margin rose to 74.6% from 73.6%, while operating margin improved to −2.26% from −9.02%. CrowdStrike reported free cash flow of $376.3 million, up 32.0% from $285.0 million. CrowdStrike reported Q2 revenue above its own guidance range of $1.4 billion to $1.4 billion.
| Q2 FY2027 | Q2 FY2026 | Change | |
|---|---|---|---|
| Revenue | $1.5 billion | $1.2 billion | 25.8% |
| Diluted EPS | $0.01 | −$0.08 | — |
| Gross margin | 74.6% | 73.6% | 1.0 percentage point |
| Operating margin | −2.26% | −9.02% | 6.8 percentage points |
| Free cash flow | $376.3 million | $285.0 million | 32.0% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.31 | $0.29 | Beat by 6.90% |
| Revenue | $1.5 billion | $1.4 billion | Beat by 2.15% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Revenue | Q2 FY2027 | $1.4 billion–$1.4 billion | $1.5 billion | Above the guide |
What management said on the call
George Kurtz said CrowdStrike’s Q2 demand reflected customers’ cybersecurity needs as AI adoption expanded the attack surface. Kurtz said the company recorded $333 million of net new ARR, ending ARR of $5.84 billion, and $1.47 billion of revenue during the quarter. He said the company’s Flex-first sales approach added more than 935 Falcon Flex accounts in Q2, while customers converting from standard subscriptions to Flex had an average ending-ARR uplift of more than 40%.
Kurtz said endpoint security, AI security, next-generation SIEM, identity and cloud products contributed to demand. He said cloud, identity and next-generation SIEM recorded combined net new ARR that was a Q2 record, while the company’s next-generation SIEM ending ARR surpassed $695 million and cloud ending ARR exceeded $905 million. Kurtz also said the company’s partner ecosystem was collaborating on nearly $400 million of total contract-value pipeline.
Burt Podbere said CrowdStrike exited the quarter with a record Q3 pipeline and that demand had broadened across customer segments and the Falcon platform. Podbere said Q2 non-GAAP gross margin was 79%, including an 81% subscription gross margin, which he attributed to cloud-optimization efforts. He said the company’s automation and AI investments were producing operational efficiencies and productivity gains.
In response to an analyst’s question about Flex, Podbere said Flex supported customers purchasing multiple products together and led to larger, longer contracts. He said cloud, next-generation SIEM and next-generation identity had combined ending ARR of $2.1 billion, up 39% year over year. Podbere said CrowdStrike’s acquisition of XM Cyber technology assets was expected to close in the second half of FY2027 and was not included in FY2027 ARR or revenue guidance.
Guidance
CrowdStrike now expects FY2027 net new ARR of $1.350 billion to $1.359 billion, up 34% year over year, compared with its earlier outlook of $1.279 billion to $1.303 billion. Burt Podbere said the company now expects FY2027 ARR of $6.603 billion to $6.612 billion. CrowdStrike now expects FY2027 revenue of $5.991 to $6.011 billion, compared with its previous $5.9 billion to $6.0 billion range. The company continues to expect at least a 30.0% FY2027 free-cash-flow margin.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Tax rate, non-GAAP | FY2027 | 21.0% | — | New |
| Tax rate, non-GAAP | Q3 FY2027 | 21.0% | — | New |
| EPS, non-GAAP | FY2027 | $1.25–$1.26 | — | New |
| EPS, non-GAAP | Q3 FY2027 | $0.31 | — | New |
| Net income, non-GAAP | FY2027 | $1.3 billion–$1.3 billion | — | New |
| Net income, non-GAAP | Q3 FY2027 | $325.4 million–$327.9 million | Q2 FY2027: $301.0 million–$303.0 million | Raised |
| Operating income, non-GAAP | FY2027 | $1.5 billion–$1.5 billion | — | New |
| Operating income, non-GAAP | Q3 FY2027 | $372.7 million–$375.9 million | Q2 FY2027: $346.0 million–$349.0 million | Raised |
| Revenue | FY2027 | $6.0 billion–$6.0 billion | $5.9 billion–$6.0 billion | Raised |
| Revenue | Q3 FY2027 | $1.5 billion–$1.5 billion | Q2 FY2027: $1.4 billion–$1.4 billion; reported $1.5 billion | Raised |
| Gross margin, Subscription | FY2029 | 82.0%–85.0% | — | New |
| Free cash flow growth | Q3 FY2027 | 27.5% | — | New |
| EPS | Q3 FY2027 | $0.31 | — | New |
| Net income | Q3 FY2027 | $325.0 million–$328.0 million | — | New |
| Operating income | Q3 FY2027 | $373.0 million–$376.0 million | — | New |
| Free cash flow growth | FY2027 | 30.0% | — | New |
| EPS | FY2027 | $1.25–$1.26 | — | New |
| Net income | FY2027 | $1.3 billion–$1.3 billion | — | New |
| Operating income | FY2027 | $1.5 billion–$1.5 billion | — | New |
| Free cash flow growth, Margin | FY2027 | 30.0% | — | New |
| EPS, Non Gaap Diluted | FY2027 | $4.88–$4.96 | — | — |