CrowdStrike Posts Record Q2 Revenue, Beats Estimates and Raises Full-Year Outlook

CrowdStrike closed its fiscal second quarter of 2027 with revenue of $1.47 billion, up 26% year over year, and annual recurring revenue of $5.84 billion as of July 31, growing 25%. Net new ARR of $332.8 million was a company record, and management raised full-year net new ARR growth guidance by 630 basis points to 34% at the midpoint. Benzinga reported the company calling it the best quarter in its history, and Proactive framed the release as a blowout that pulled the full-year forecast up with it.

The profitability line underneath the headline is thinner than the growth line. GAAP net income was just $5.3 million, or $0.01 a share, against non-GAAP net income of $322.9 million and non-GAAP diluted EPS of $0.31. Cash generation was the stronger tell: $530.3 million of operating cash flow and $377.4 million of free cash flow in the quarter, with $5.01 billion of cash and equivalents on the balance sheet. For the full year, CrowdStrike now guides adjusted EPS of $1.25 to $1.26 against a FactSet consensus of $1.23.

Product depth is doing the work on the ARR line. Falcon Flex, the consumption-style licensing model, passed $2.29 billion in ending ARR from adopting accounts and grew 101% year over year for that cohort, while 51% of subscription customers now run six or more modules, 35% run seven or more and 26% run eight or more. The company also picked up XM Cyber as a technology asset acquisition from Schwarz Digits and launched Continuous Identity for AI Agents, pushing into the same agent-identity problem OKTA spent its own quarter describing.

Bloomberg tied the beat to rising AI-driven threat volume, and Barron's noted CRWD and OKTA moving together on the read that AI adoption is lifting security budgets. FXStreet grouped the after-hours move with CRM and Okta as a single software-earnings night. SentiSense's analyst consensus for CRWD sits at a $210.54 average target across 50 analysts, spanning $103.25 to $256.00, with 40 of 53 rated analysts at buy. The open question is module attach and Falcon Flex renewal behavior: consumption licensing pulls ARR forward well, and it also gives customers a lever to pull back if security budgets tighten.

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