Key highlights:

  • CrowdStrike beat Q2 estimates with $1.47B revenue, hitting a record net new ARR of $332.8M and total ARR of $5.84B
  • FY27 guidance raised to $5.99–$6.01B, above the $5.93B consensus, with a net new ARR growth forecast up 630 bps to 34%
  • AI-driven enterprise security demand is the key tailwind, with 51% of subscribers using 6+ Falcon modules

CrowdStrike Holdings shares (CRWD) rose about 8% in premarket trading Thursday after the cybersecurity company reported stronger-than-expected second-quarter results and raised its fiscal 2027 outlook.

The stock closed at $189.18 on Wednesday after a volatile month, having climbed as high as $227.50 on Aug. 14 before falling to around $185 by Aug. 25. 

 

Following the earnings release, shares rose above $206 in extended trading and continued higher in premarket trading Thursday.

The rally followed strong growth in recurring revenue, record Falcon Flex performance, and continued demand across its cybersecurity portfolio as businesses increased spending to secure cloud, AI, and other digital workloads.

Crowdstrike earnings beat estimates as revenue hits $1.47 billion

CrowdStrike reported fiscal second-quarter revenue of $1.47 billion for the period ended July 31, up 26% from $1.17 billion a year earlier and above Wall Street’s $1.44 billion estimate. 

Adjusted earnings came in at $0.31 per share, beating the $0.29 analyst consensus.

The strong quarter was also reflected in CrowdStrike’s recurring revenue. Annual recurring revenue rose 25% year over year to $5.84 billion, while net new ARR reached a record $332.8 million. 

CrowdStrike's second quarter FY 2027 results

CrowdStrike's second quarter FY 2027 results. Source: Crowdstrike

Chief Financial Officer Burt Podbere said the quarter set records for both overall net new ARR and new customer additions.

CrowdStrike responded by raising its fiscal 2027 outlook, as the company now expects full-year revenue of $5.99 billion to $6.01 billion, above analysts' consensus of $5.93 billion, while adjusted earnings are expected at $1.25 to $1.26 per share. 

It also lifted its net new ARR growth forecast to 34% at the midpoint, up 630 basis points from its previous outlook.

CrowdStrike just had its “best quarter in history," and it's raising its FY27 guidance

For the third quarter, CrowdStrike expects revenue of $1.52 billion to $1.53 billion and adjusted earnings of $0.31 per share.

The upbeat outlook also drew a positive response from Wall Street, with Jefferies raising its price target on CrowdStrike to $240 from $230, citing stronger momentum across its pipeline, Falcon Flex offering, and broader product portfolio.

Customer adoption of CrowdStrike’s platform also continued to deepen. As of July 31, 51% of subscription customers were using at least six modules, while 35% used seven or more and 26% used eight or more.

Profitability improved alongside growth as GAAP subscription gross margin rose to 78% from 77% a year earlier, while non-GAAP subscription gross margin increased to 81% from 80%. 

CEO George Kurtz called the quarter the strongest in CrowdStrike’s history, pointing to record Falcon Flex results, record net new ARR, and accelerating growth.

The company also noted the growing demand for security as businesses adopt artificial intelligence (AI). CrowdStrike has expanded its products for AI agents and AI workloads and added integrations with major cloud and AI infrastructure providers.

“Every enterprise will run on AI, and securing it is the largest market opportunity in our history,” Kurtz said.

CrowdStrike gains momentum with Falcon as AI spending fuels cybersecurity demand

CrowdStrike’s latest results suggest the cybersecurity market is benefiting from the same enterprise AI spending cycle supporting other areas of technology. 

Nvidia reported record fiscal second-quarter revenue of $96.22 billion, up 106% year over year, while Google Cloud revenue jumped 82% to $24.8 billion. Salesforce and Qualys also raised their outlooks as demand for AI-powered products and security solutions strengthened.

Notably, the trend is intensifying competition among cybersecurity providers, including CrowdStrike, Palo Alto Networks, SentinelOne, and Microsoft, as enterprises seek to consolidate security tools and protect increasingly AI-driven operations.

CrowdStrike is targeting that market through its Falcon platform and Falcon Flex subscription model, which allows customers to deploy multiple security modules through a single platform. 

The strategy is gaining traction, with record net new annual recurring revenue of $332.8 million and total ARR rising 25% to $5.84 billion in the latest quarter.

Security teams are using AI to detect abnormal activity, investigate incidents, and automate responses, while attackers are using generative AI to create more convincing phishing campaigns, malicious code, and automated attacks.

CrowdStrike is responding with AI-driven detection, Charlotte AI and AgentWorks, positioning its Falcon platform to help security teams analyze threats and respond at machine speed.