CrowdStrike Q2 2027 earnings: record bookings and raised guidance
CrowdStrike beat Q2 2027 profit and revenue estimates, posted record new subscription bookings, and raised its full-year guidance.
| Q2 2027 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $0.31 | $0.30 | +3.9% |
| Revenue | $1.47B | $1.47B | +0.1% |
Key takeaways
- CrowdStrike topped Wall Street’s expectations for both profit and sales — adjusted earnings per share of $0.31 versus the roughly $0.30 analysts expected, and revenue of about $1.47 billion versus the roughly $1.47 billion expected, extending a long streak of beating forecasts.
- Total revenue grew 26% from the same quarter last year, when CrowdStrike posted $1.17 billion, showing the cybersecurity company’s growth is still accelerating rather than slowing down.
- Annual recurring revenue (ARR, the value of subscription contracts booked for the year ahead) rose 25% to $5.84 billion, and the $332.8 million added in new ARR during the quarter was the largest quarterly gain in the company’s history and up 51% from a year ago.
- Customers using CrowdStrike’s flexible “Falcon Flex” subscription bundle, which lets clients buy a pool of credits to mix and match security products, more than doubled in size year over year to over $2.29 billion, a sign existing customers are consolidating more spending with the company.
- The company generated $530.3 million in cash from operations and $377.4 million in free cash flow (cash left after running the business and covering equipment/software investments), both up sharply from a year ago — a sign the underlying subscription business is throwing off real cash even as accounting profit measures lag.
- Trailing-twelve-month operating and net profit margins remain slightly negative, reflecting costs still working through the books from the past year, including fallout from 2024’s software outage; gross margin, a measure of how much revenue is left after direct costs of delivering the service, stayed healthy at just over 75%.
- CrowdStrike raised its full-year guidance, now expecting fiscal 2027 revenue of $5.99 billion to $6.01 billion (above the roughly $5.94 billion analysts had penciled in) and non-GAAP earnings per share of $1.25 to $1.26, while lifting its outlook for net new ARR growth as well.
- For the current (third) quarter, the company guided to revenue of $1.523 billion to $1.529 billion and adjusted earnings of about $0.31 per share.
- CEO George Kurtz called it “the best quarter in CrowdStrike’s history,” tying the results to rising demand for AI-related security tools, which he described as one of the company’s largest market opportunities.
- Shares jumped as much as 12% in after-hours trading following the report.
Q2 2027 in context
| Metric | Jul 2026 | Jul 2025 | Change |
|---|---|---|---|
| Revenue | $1.5B | $1.2B | +25.8% |
| Net income | $5M | -$70M | +107.6% |
| Free cash flow | $406M | $302M | +34.2% |
| Diluted EPS | $0.01 | -$0.07 | +114.3% |
| Gross margin | 74.6% | 73.6% | +1.0 pts |
| Operating margin | -2.3% | -9.0% | +6.8 pts |
| Net margin | 0.4% | -6.0% | +6.4 pts |
Figures for the quarter ended Jul 2026 and the quarter ended Jul 2025, as reported to the SEC.
How the stock took it
CrowdStrike Holdings Inc closed at $185.38 on Aug 25, 2026, the last session before the report, and at $227.96 on Aug 27, 2026, the first session after it — +23.0% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 75.2% | Trailing 12 months |
| Operating margin | -3.9% | Trailing 12 months |
| Net profit margin | -0.5% | Trailing 12 months |
| Pretax margin | 0.0% | Trailing 12 months |
| EPS | -$0.03 | Trailing 12 months |
| Revenue growth (YoY) | 23.2% | Trailing 12 months |
| Return on equity | -0.6% | Trailing 12 months |
Sources: company report · earnings call · CNBC