Crowdstrike Holdings Inc - Class A
Q2 2027 Earnings
Market Reaction
Did CRWD Beat Earnings? Q2 2027 Results
CrowdStrike delivered a strong second quarter for fiscal 2027, beating Wall Street expectations on both the top and bottom lines and extending its consensus EPS beat streak to nine consecutive quarters. The cybersecurity firm reported adjusted EPS of $0.31, clearing the $0.29 consensus estimate by 6.35%, while revenue climbed 25.8% year over year to $1.47 billion, ahead of the $1.44 billion analysts had projected. The clearest engine behind the outperformance was the rapid adoption of its Falcon Flex licensing model, which helped push annual recurring revenue up 25% to $5.84 billion, with net new ARR accelerating 51% year over year to $332.80 million. The company also swung to GAAP net income of $5.31 million from a loss of $70.15 million a year ago, while free cash flow reached $377.41 million. Despite a notable pre-earnings stock pullback tied to investor caution over valuation, management raised its full-year revenue guidance to a range of $5.99 billion to $6.01 billion and lifted its non-GAAP EPS outlook to $1.25 to $1.26, signaling confidence in sustained demand for its platform.
- Record net new ARR of $332.8 million, accelerating growth to 51% year-over-year
- Falcon Flex ending ARR exceeded $2.29 billion, growing 101% year-over-year
- Module adoption rates grew to 51% for 6+ modules, 35% for 7+ modules, 26% for 8+ modules
- Increased dollar-based gross and net retention rates
- Record net new ARR from new logos
- Non-GAAP subscription gross margin improved to 81% from 80% year-over-year
“Q2 was the best quarter in CrowdStrike's history. Delivering record Falcon Flex results, record net new ARR, and accelerating growth—the Falcon is soaring. We're raising our full year fiscal 2027 net new ARR growth outlook by 630 basis points. The Mythos moment translated into mass-market acceptance that AI adoption needs security, and that's CrowdStrike. Every enterprise will run on AI, and securing it is the largest market opportunity in our history.”
CrowdStrike CEO, on the earnings call
Forward Guidance & Outlook
For Q3 FY27, CrowdStrike guided ARR of $6,184.4–$6,188.4 million, total revenue of $1,523.2–$1,529.2 million, non-GAAP income from operations of $372.7–$375.9 million, non-GAAP net income of $325.4–$327.9 million, and non-GAAP diluted EPS of $0.31. For full-year FY27, the company raised guidance: ARR of $6,603.0–$6,611.9 million, total revenue of $5,991.1–$6,011.1 million, non-GAAP income from operations of $1,497.2–$1,508.4 million, non-GAAP net income of $1,302.7–$1,311.6 million, and non-GAAP diluted EPS of $1.25–$1.26. Net new ARR growth guidance was raised by 630 basis points to 34% at the midpoint. The company adopted a 21.0% long-term non-GAAP tax rate.
CRWD YoY Financials
CRWD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.