Aug 26, 2026, 4:07 PM ETTechnology

CrowdStrike — Second Quarter Fiscal Year 2027 Earnings Summary

CRWDCROWDSTRIKE HOLDINGS INC

Financial Performance

Total revenue reached $1.47 billion, a 26% year-over-year increase compared to $1.17 billion in Q2 FY26.
Subscription revenue was $1.40 billion, a 27% year-over-year increase compared to $1.10 billion in Q2 FY26.
Annual Recurring Revenue (ARR) grew 25% year-over-year to $5.84 billion as of July 31, 2026.
Net new ARR added in the quarter was $333 million (record), accelerating growth to 51% year-over-year.
Accounts adopting Falcon Flex generated over $2.29 billion in ending ARR, accelerating growth to 101% year-over-year.
GAAP loss from operations was $33.2 million, an improvement from a $105.5 million loss in Q2 FY26.
Non-GAAP income from operations was $371.6 million, up from $255.0 million in Q2 FY26.
GAAP net income attributable to CrowdStrike was $5.3 million, compared to a $70.2 million loss in Q2 FY26.
Non-GAAP net income attributable to CrowdStrike was $322.9 million, up from $237.4 million in Q2 FY26.
GAAP diluted net income per share was $0.01, compared to a $0.07 loss in Q2 FY26.
Non-GAAP diluted net income per share was $0.31, up from $0.23 in Q2 FY26.
Net cash generated from operations was $530.3 million, compared to $332.8 million in Q2 FY26.
Free cash flow was $377.4 million, compared to $283.6 million in Q2 FY26.
Cash and cash equivalents grew to $5.01 billion as of July 31, 2026.
GAAP subscription gross margin was 78% (up from 77% in Q2 FY26); Non-GAAP subscription gross margin was 81% (up from 80% in Q2 FY26).

Increased full-year fiscal 2027 net new ARR growth guidance by 630 basis points to 34% year-over-year growth at the midpoint.
Q3 FY27 guidance (ending October 31, 2026):
- Annual recurring revenue: $6,184.4 million to $6,188.4 million.
- Total revenue: $1,523.2 million to $1,529.2 million.
- Non-GAAP income from operations: $372.7 million to $375.9 million.
- Non-GAAP net income attributable to CrowdStrike: $325.4 million to $327.9 million.
- Non-GAAP net income per share (diluted): $0.31.
- Non-GAAP tax rate: 21.0%.
Full-year fiscal 2027 guidance (ending January 31, 2027):
- Annual recurring revenue: $6,603.0 million to $6,611.9 million.
- Total revenue: $5,991.1 million to $6,011.1 million.
- Non-GAAP income from operations: $1,497.2 million to $1,508.4 million.
- Non-GAAP net income attributable to CrowdStrike: $1,302.7 million to $1,311.6 million.
- Non-GAAP net income per share (diluted): $1.25 to $1.26.
- Non-GAAP tax rate: 21.0%.

Module adoption rates for subscription customers grew to 51% for six or more modules, 35% for seven or more, and 26% for eight or more as of July 31, 2026.
Unveiled Continuous Identity for AI Agents to extend risk-aware authorization across human, non-human, and AI agent identities.
Introduced new AI, cloud, and Next-Gen SIEM innovations in collaboration with Amazon Web Services (AWS).
Extended CrowdStrike Falcon AI Detection and Response (AIDR) across leading AI gateway partners including Databricks, Google Cloud, JetStream Security, Kong, LiteLLM, Maxim AI, Microsoft Azure, and TrueFoundry.
Expanded Project QuiltWorks with AWS to the cloud infrastructure layer and broadened support for SMBs regarding frontier AI risks.
Announced a strategic collaboration with Cerebras Systems combining the AI-native security platform with AI inference.
Expanded strategic partnership with Schwarz Digits to bring the Falcon platform to European enterprises and agreed to acquire XM Cyber technology assets.
Joined the OpenID Foundation as a Sustaining Corporate Member and IDPro.

Recognized as a Leader in The Forrester Wave™: Extended Detection and Response Platforms, Q2 2026.
Named a Leader in the 2026 IDC MarketScape: Worldwide SIEM Vendor Assessment.
Named a Leader in the 2026 IDC MarketScape: Worldwide MDR/MXDR for the Enterprise Vendor Assessment.
Named Frost & Sullivan's 2026 Global Enabling Technology Leader in Zero Trust Browser Security.
Named Growth and Innovation Leader in the 2026 Frost Radar™: Cloud and Application Runtime Security.
CEO George Kurtz stated that AI adoption needs security and that securing AI is the largest market opportunity in the company's history.

Risks associated with the July 19, 2024 content configuration update (July 19 Incident) that resulted in system crashes for certain Windows systems.
Risks related to managing rapid growth and execution challenges.
Risks associated with new or existing products, including potential defects, errors, or vulnerabilities.
Intensely competitive and rapidly evolving market conditions.
Length and unpredictability of sales cycles.
Ability to attract new and retain existing customers.
Ability to complete and successfully integrate acquisitions.
Failure to timely develop and achieve market acceptance of new products.
General market, political, economic, and business conditions, including inflation, geopolitical uncertainty, and banking sector volatility.

CEO George Kurtz described Q2 as the "best quarter in CrowdStrike's history," citing record Falcon Flex results, record net new ARR, and accelerating growth.
Kurtz stated, "The Mythos moment translated into mass-market acceptance that AI adoption needs security, and that's CrowdStrike."
CFO Burt Podbere highlighted record net new ARR from new logos, increased dollar-based gross and net retention rates, and record cash flow.
Management expressed confidence in a "strong Q2 results and record Q3 pipeline," positioning the company for continued durable, profitable growth.

CrowdStrike agreed to acquire the technology assets of XM Cyber, a Schwarz Digits company, which provides advanced attack path visualization and offensive simulation technologies.
The company reported a four-for-one stock split effected after the close of trading on July 1, 2026, with share and per share amounts retroactively adjusted.
Effective Q2 FY26, CrowdStrike adopted a 21.0% long-term projected non-GAAP tax rate, reduced from 22.5%, reflecting anticipated tax benefits from earning income outside the U.S. while retaining IP within the U.S.
GAAP net cash used in investing activities for the six months ended July 31, 2026, was $1.15 billion, primarily driven by business acquisitions net of cash acquired ($881.4 million).
GAAP net cash used in financing activities for the six months ended July 31, 2026, was $111.9 million, driven by $175.6 million in repurchases of common stock.