CrowdStrike Q2 FY2027 earnings beat: revenue, ARR top estimates
CrowdStrike reported second-quarter fiscal 2027 results on Wednesday that beat analyst expectations on revenue and annual recurring revenue, and the company raised its full-year guidance on both metrics.
Total revenue for the quarter ended July 31 was $1.47 billion, up 26% from $1.17 billion in the same period a year earlier, and adjusted earnings per share came in at $0.31. Analysts had estimated $1.44 billion and $0.29, respectively, according to Bloomberg .
Annual recurring revenue grew 25% year-over-year to $5.84 billion as of July 31, with $332.8 million in net new ARR added during the quarter, a record for the company and a 51% increase from a year ago. Analysts had estimated $5.79 billion in ARR on average, according to Bloomberg.
CrowdStrike stock jumped as much as 12% in extended trading on Wednesday.
For the full fiscal year 2027, CrowdStrike forecast revenue of $5.99 billion to $6.01 billion, ahead of analyst estimates of $5.94 billion. Third-quarter revenue guidance of up to $1.53 billion came in above the average analyst estimate of $1.52 billion, and the company raised its full-year net new ARR growth guidance by 630 basis points to 34% year-over-year growth at the midpoint.
CrowdStrike also reported record second-quarter cash flow from operations of $530.3 million, up from $332.8 million a year earlier, and free cash flow of $377.4 million, up from $283.6 million. The company held $5.01 billion in cash and cash equivalents as of July 31.
ARR from accounts that have adopted the company's Falcon Flex platform exceeded $2.29 billion, growing 101% year-over-year, the company said.
"The Mythos moment translated into mass-market acceptance that AI adoption needs security, and that's CrowdStrike," chief executive officer George Kurtz said in a statement. "Every enterprise will run on AI, and securing it is the largest market opportunity in our history."
The stock had already climbed to record highs earlier this month following the Black Hat cybersecurity conference, where demand for AI security tools dominated industry conversations and analysts raised their price targets on the company.
The Austin, Texas-based company, which was founded in 2011, completed a four-for-one stock split in July. The stock is up as much as 62% on the year.
