CrowdStrike Net New ARR Reaches Record $333 Million
The cybersecurity company lifted full-year fiscal 2027 net new ARR growth guidance to 34% at the midpoint after a 51% year-over-year acceleration.
CrowdStrike Holdings (CRWD) added a record $333 million of net new annual recurring revenue in the second quarter of fiscal 2027, accelerating year-over-year growth to 51% from 32% in the prior quarter.
The Austin-based cybersecurity company’s first-quarter net new ARR of $256 million had already been a record. Ending ARR reached $5.84 billion as of July 31, 2026, up 25% from a year earlier, after 24% year-over-year growth to $5.51 billion as of April 30.
Founder and Chief Executive Officer George Kurtz called the quarter the best in the company’s history and said the “Mythos moment” translated into mass-market acceptance that AI adoption needs security. Chief Financial Officer Burt Podbere said the company raised its full-year fiscal 2027 net new ARR growth outlook by 630 basis points to 34% at the midpoint, citing strong second-quarter results and a record third-quarter pipeline.
That raise followed a 520-basis-point increase issued with first-quarter results, when the company had lifted the midpoint to 27.7%.
Falcon Flex, the consumption-based offering, was the other operating inflection. Ending ARR from accounts that have adopted Falcon Flex exceeded $2.29 billion, accelerating to 101% year-over-year growth. Module adoption among subscription customers stood at 51% for six or more modules, 35% for seven or more, and 26% for eight or more as of July 31.
Total revenue was $1.47 billion, a 26% increase versus $1.17 billion a year earlier, matching the year-over-year growth rate reported in the prior quarter. Subscription revenue was $1.40 billion, a 27% increase versus $1.10 billion a year earlier, after 26% year-over-year growth in the first quarter.
GAAP subscription gross margin was 78%, unchanged from the prior quarter and one point higher than a year earlier. Non-GAAP subscription gross margin was 81%, also unchanged from the prior quarter and one point higher year-over-year.
Non-GAAP income from operations was $371.6 million, up from $325.7 million in the prior quarter, with non-GAAP operating margin expanding to 25% from 22% a year earlier. GAAP results swung to net income of $5.3 million, or $0.01 a share diluted, from a year-earlier loss of $70.2 million, or $0.07 a share. Non-GAAP net income was $322.9 million, or $0.31 a share, versus $237.4 million, or $0.23 a share, a year earlier.
Cash flow from operations was a second-quarter record $530.3 million and free cash flow was a second-quarter record $377.4 million, both higher than a year earlier. Operating cash flow was 36% of revenue and free cash flow margin was 26%. Cash and cash equivalents were $5.01 billion as of July 31, after a four-for-one stock split effected after the close on July 1.
For the third quarter of fiscal 2027, ending October 31, 2026, CrowdStrike guided to total revenue of $1.5232 billion to $1.5292 billion and ending ARR of $6.1844 billion to $6.1884 billion. Full-year fiscal 2027 revenue guidance was $5.9911 billion to $6.0111 billion, with ending ARR of $6.6030 billion to $6.6119 billion.
The company agreed to acquire the technology assets of XM Cyber, a Schwarz Digits company that provides attack path visualization and offensive simulation, as part of an expanded partnership with Schwarz Digits.