CrowdStrike Holdings reported second-quarter fiscal 2027 results that exceeded Wall Street expectations, sending shares up 10.38% in after-hours trading to $208.81.
The cybersecurity company posted adjusted earnings per share of $0.31, beating the $0.29 consensus estimate by $0.02, or 6.9%. Total revenue reached $1.47 billion, surpassing the $1.44 billion forecast by $30 million, a 2.1% margin, and climbing 26% year-over-year. Subscription revenue, the core of its business, grew 27% to $1.40 billion, while professional services revenue hit a company record of $71 million.
Annual recurring revenue (ARR) rose more than 25% year-over-year to $5.84 billion, with new net ARR totaling a company record $333 million, up 51% from the prior year. Non-GAAP operating income increased 46% to $372 million, representing 25% of revenue, while non-GAAP operating margin expanded by 350 basis points year-over-year. Non-GAAP net income climbed 34% to $323 million, and free cash flow surged 33% to a record $377 million, equating to 26% of revenue.
The company maintained strong operational momentum, with 51% of subscription customers now using six or more modules. Revenue growth has accelerated for five consecutive quarters, a streak matched by five straight quarters of accelerating international revenue growth.
CrowdStrike also reaffirmed its full-year fiscal 2027 guidance, projecting revenue between $5.991 billion and $6.011 billion, non-GAAP EPS between $1.25 and $1.26, and a free cash flow margin of at least 30%. For the third quarter, the company expects revenue of $1.523 billion to $1.529 billion, adjusted EPS of around $0.31, and a free cash flow margin target of 27.5%.
CEO George Kurtz highlighted the company's performance, stating that "the inflection has become acceleration" and that the quarter's results "set a new benchmark." He emphasized the role of AI in driving both cyberattacks and increased spending on cybersecurity, framing the market as an arms race. Kurtz also underscored CrowdStrike's cybersecurity infrastructure layer as critical to AI adoption.
CFO Burt Podbere noted that the results "reinforce the exceptional execution and the power of our platform strategy." The company expects to complete the acquisition of XM Cyber in the second half of fiscal 2027.
