CrowdStrike Lifts Outlook as Revenue Growth Accelerates for Fifth Straight Quarter
The cybersecurity company swung to a GAAP profit of $27.8 million as subscription revenue hit $1.32 billion, up 26% from a year earlier.
CrowdStrike Holdings (CRWD) posted accelerating revenue growth and a record first-quarter profit in its fiscal first quarter, as the cybersecurity vendor raised its full-year guidance across the board and announced a four-for-one stock split.
Total revenue rose 26% year-over-year to $1.39 billion in the three months ended April 30, marking the fifth consecutive quarter of accelerating top-line growth — up from 23% in the prior quarter, 22% in the third quarter, 21% in the second, and 20% a year ago. Subscription revenue, which accounts for the vast majority of the business, also grew 26% to $1.32 billion, following the same upward trajectory.
The company's annual recurring revenue reached $5.51 billion, up 24% from a year earlier, while net new ARR of $256 million set a first-quarter record and represented 32% growth from the $194 million added in the same period last year. CrowdStrike's ability to sustain mid-20s ARR growth even as the base expands underscores the durability of demand for its endpoint-security and cloud-workload platform.
Customer adoption of multiple modules continued to deepen: 51% of subscribers now use six or more products, up from 48% a year ago, while 35% use seven or more and 25% use eight or more — each up a percentage point sequentially. That broadening footprint is flowing through to profitability. Non-GAAP operating margin widened to 24% from 18% a year earlier, and non-GAAP income from operations surged 62% to $325.7 million. On a GAAP basis, CrowdStrike swung to net income of $27.8 million from a loss of $104.3 million in the year-ago quarter, as costs tied to last July's outage continued to decline and restructuring charges dropped to zero.
Non-GAAP earnings per share reached $1.10, up 51% from $0.73 a year ago, while cash flow from operations hit a record $591 million and free cash flow reached $469 million, a 68% year-over-year increase. Sales and marketing spending fell to 30% of revenue from 33% a year earlier, reflecting ongoing operating leverage.
Management raised its fiscal 2027 outlook, lifting full-year revenue guidance to $5.91 billion–$5.96 billion and non-GAAP EPS guidance to $4.88–$4.96, up from the prior range of $4.78–$4.90. Net new ARR growth guidance was increased by 520 basis points at the midpoint to 27.7%, now expected to accelerate over the prior fiscal year, with ARR projected at $6.53 billion–$6.56 billion. For the second quarter, the company guided revenue of $1.44 billion at the midpoint, implying roughly 23% growth.
CrowdStrike also completed $881 million in business acquisitions during the quarter, nearly doubling goodwill to $2.27 billion, while spending $176 million on share repurchases. The stock split, with a record date of June 25 and adjusted trading beginning July 2, will bring the per-share price down to a range accessible to a wider base of individual investors.