CrowdStrike Holdings reported a record second-quarter fiscal 2027 performance, with annual recurring revenue (ARR) rising 25% to $5.84 billion, driven by demand for AI-powered security solutions. The company’s stock surged 10.38% in after-hours trading to $208.81, nearing its 52-week range of $85.68 to $227.50.
Total revenue for the quarter reached $1.47 billion, a 26% increase from the prior year, while subscription revenue grew 27% to $1.40 billion. Non-GAAP operating income climbed 46% to $372 million, with operating margins expanding by 350 basis points to 25%. Diluted earnings per share rose 34% to $0.31, exceeding analyst expectations of $0.29.
Free cash flow hit a record $377 million, up 33% year-over-year, with margins improving by 140 basis points to 26%. Subscription gross profit increased 28% to $1.14 billion, with margins widening by 90 basis points to 81%. Net new ARR totaled $333 million, a 51% increase from the prior year.
The company highlighted strong adoption of its Agentic Security Platform, which now spans 33 modules. Over half of subscription customers use six or more modules, with 35% deploying seven or more and 26% utilizing eight or more. Combined ARR for key modules—Cloud Security, LogScale Next-Gen SIEM, and Next-Gen Identity—exceeded $2.18 billion, growing over 39% year-over-year. Cloud Security ARR surpassed $905 million, LogScale Next-Gen SIEM reached over $695 million, and Next-Gen Identity ARR exceeded $585 million.
CrowdStrike’s Falcon Flex commercial model continued to gain traction, with ending ARR from Flex accounts reaching $2.29 billion, a 101% year-over-year increase. The company reported over 2,900 Flex customers and more than 630 Re-Flex customers. Conversions to Flex generated an average ARR uplift of over 40%, with Re-Flex contracts showing a 25% uplift on completion and 53% for two or more contracts.
CEO George Kurtz described the Falcon platform as "cybersecurity's infrastructure layer for AI adoption." The company reiterated its long-term targets, projecting subscription gross margins of 82–85%, operating margins of 28–32%, and free cash flow margins of 34–38% by fiscal 2029.
For full-year fiscal 2027, CrowdStrike guided revenue between $5.991 billion and $6.011 billion, with non-GAAP diluted EPS of $1.25 to $1.26. Third-quarter guidance calls for revenue of $1.523 billion to $1.529 billion and adjusted EPS of approximately $0.31, with expected ARR by fiscal year-end of $6.603 billion to $6.612 billion.
