CrowdStrike Holdings Inc. reported fiscal second-quarter revenue of $1.47 billion, a 26% increase from the prior year, topping analyst expectations by $30 million. Adjusted earnings per share rose 34% year-over-year to $0.31, exceeding estimates by $0.02. The company’s annual recurring revenue reached $5.84 billion, up more than 25% from a year ago, while net new ARR hit a record $333 million, beating guidance by over $45 million.
Subscription revenue, the company’s primary driver, totaled $1.40 billion, up 27% year-over-year. Professional services revenue hit a record $71 million. Non-GAAP operating income rose 46% to $372 million, representing 25% of revenue, while free cash flow reached $377 million, or 26% of revenue. Cash and cash equivalents stood at $5.01 billion.
Chief Executive Officer George Kurtz highlighted accelerating growth, stating that "inflection has become acceleration" and that AI is driving both cyberattacks and cybersecurity spending. CrowdStrike’s platform is positioned as "cybersecurity’s infrastructure layer for AI adoption," he added. Chief Financial Officer Burt Podbere emphasized the company’s "exceptional execution and the power of our platform strategy."
Product segments showed strong momentum. The Falcon Flex commercial model, which allows customers to scale security modules, surpassed $2.29 billion in ending ARR, growing 101% year-over-year. More than 935 Flex accounts were added during the quarter, with over 630 customers re-Flexing at least once. Repeat re-Flex customers saw an average ARR uplift of 53%, while those converting from standard subscriptions experienced a greater than 40% increase. Next-Gen SIEM ARR exceeded $695 million, identity protection ARR grew 34% to over $585 million, and cloud security ARR surpassed $905 million, up 29% year-over-year. Module adoption remained robust, with 51% of subscription customers using six or more modules.
The company’s guidance for the full fiscal year 2027 was raised, with revenue now expected between $5.991 billion and $6.011 billion, up from prior ranges. Non-GAAP net income per share is projected between $1.25 and $1.26, while free cash flow margin is expected to reach at least 30%. Net new ARR guidance was increased by 630 basis points, implying 34% growth at the midpoint. Third-quarter guidance calls for revenue of $1.523 billion to $1.529 billion and adjusted EPS of about $0.31.
CrowdStrike’s shares surged 10.38% in after-hours trading to $208.81, following a 2.05% gain during regular trading to close at $189.18. The stock has traded between $85.68 and $227.50 over the past 52 weeks.
