CrowdStrike (CRWD) Q1 FY27: Record Growth in ARR and Cash Flow — Strongly Positive

CrowdStrike Holdings, Inc. (Nasdaq: CRWD) reported impressive financial results for the first quarter of fiscal year 2027, ending April 30, 2026. The company achieved record net new Annual Recurring Revenue (ARR) of $256 million, reflecting a robust 32% year-over-year growth. This performance marks a significant improvement compared to the previous year, where the ARR growth was not disclosed but can be inferred to be lower given the substantial increase this quarter.

Key Financial Metrics:

• Total Revenue: $1.39 billion, a 26% increase from $1.10 billion in Q1 FY26.
• Subscription Revenue: $1.32 billion, also a 26% increase from $1.05 billion in Q1 FY26.
• Net New ARR: $256 million, up 32% year-over-year.
• Cash Flow from Operations: $591 million, compared to $384 million in Q1 FY26.
• Free Cash Flow: $468 million, up from $279 million in Q1 FY26.
• GAAP Net Income: $27.8 million, compared to a loss of $104.3 million in Q1 FY26.
• GAAP Net Income per Share: $0.11, compared to a loss of $0.42 in Q1 FY26.
• Non-GAAP Net Income: $283.4 million, compared to $184.7 million in Q1 FY26.
• Non-GAAP Net Income per Share: $1.10, up from $0.73 in Q1 FY26.

Analyst Opinion

This quarter is a strongly positive outcome for shareholders. The substantial growth in both revenue and ARR, coupled with a significant turnaround in net income, indicates that CrowdStrike is effectively capitalizing on the increasing demand for cybersecurity solutions, particularly in the context of AI integration. The record cash flow figures further underscore the company's operational efficiency and profitability, which are critical for sustaining growth and funding future initiatives.

Strategic Developments

CrowdStrike has also raised its full-year net new ARR growth guidance by 520 basis points at the midpoint, now expecting a growth rate of 27.7%. This upward revision reflects the company's confidence in its growth trajectory, driven by strong customer retention and increased adoption of its Falcon platform.

Additionally, the company announced a four-for-one stock split, which will take effect on July 2, 2026. This move is likely aimed at making shares more accessible to a broader range of investors, potentially increasing liquidity and interest in the stock.

Forward-Looking Catalysts

Investors should closely monitor CrowdStrike's upcoming second quarter results, particularly its ability to maintain momentum in ARR growth and cash flow generation. The company has indicated a strong pipeline for Q2 FY27, and any updates on customer acquisition and retention rates will be crucial indicators of its ongoing success. Furthermore, developments related to its AI initiatives and partnerships, such as the QuiltWorks coalition, will be key areas to watch as they could significantly impact future growth prospects.

In summary, CrowdStrike's Q1 FY27 results reflect a robust performance that not only exceeds expectations but also positions the company favorably for continued growth in the rapidly evolving cybersecurity landscape.

Note: All amounts in the following tables are in thousands.

Revenue	2026	2025
Subscription	$ 1,320,853	$ 1,050,768
Professional services	$ 64,776	$ 52,666
Total revenue	$ 1,385,629	$ 1,103,434
Cost of revenue
Subscription(1)(2)	$ 288,463	$ 241,360
Professional services(1)	$ 53,814	$ 46,515
Total cost of revenue	$ 342,277	$ 287,875
Gross profit	$ 1,043,352	$ 815,559
Operating expenses
Sales and marketing(1)(2)(3)(4)(5)	$ 488,674	$ 439,211
Research and development(1)(3)(4)(5)	$ 408,326	$ 330,926
General and administrative(1)(2)(3)	$ 176,952	$ 164,135
Total operating expenses	$ 1,073,952	$ 934,272
Loss from operations	$ -30,600	$ -118,713
Interest expense(7)	$ -6,116	$ -6,715
Interest income	$ 40,542	$ 45,380
Other income (expense), net(8)(9)	$ 35,237	$ -3,896
Income (loss) before provision for income taxes	$ 39,063	$ -83,944
Provision (benefit) for income taxes	$ -6,903	$ 21,106
Net income (loss)	$ 45,966	$ -105,050
Net income (loss) attributable to non-controlling interest	$ 18,192	$ -786
Net income (loss) attributable to CrowdStrike	$ 27,774	$ -104,264
Net income (loss) per share attributable to CrowdStrike common stockholders:
Basic	$ 0.11	$ -0.42
Diluted	$ 0.11	$ -0.42
Weighted-average shares used in computing net income (loss) per share attributable to CrowdStrike common stockholders:
Basic	253,732	248,432
Diluted	257,881	248,432

	April 30, 2026	January 31, 2026
Assets
Current assets:
Cash and cash equivalents	$ 4,552,801	$ 5,230,125
Accounts receivable, net of allowance for credit losses	$ 933,887	$ 1,361,844
Deferred contract acquisition costs, current	$ 353,869	$ 447,455
Prepaid expenses and other current assets	$ 461,063	$ 379,695
Total current assets	$ 6,301,620	$ 7,419,119
Strategic investments	$ 66,263	$ 76,832
Property and equipment, net	$ 1,066,204	$ 976,331
Operating lease right-of-use assets	$ 70,093	$ 69,860
Deferred contract acquisition costs, noncurrent	$ 743,200	$ 655,658
Goodwill	$ 2,267,493	$ 1,363,294
Intangible assets, net	$ 285,739	$ 136,702
Other long-term assets	$ 469,488	$ 388,888
Total assets	$ 11,270,100	$ 11,086,684
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$ 54,221	$ 105,319
Accrued expenses	$ 196,216	$ 181,089
Accrued payroll and benefits	$ 372,055	$ 389,690
Operating lease liabilities, current	$ 19,894	$ 18,232
Deferred revenue	$ 3,370,233	$ 3,421,051
Other current liabilities	$ 103,243	$ 68,811
Total current liabilities	$ 4,115,862	$ 4,184,192
Long-term debt	$ 745,843	$ 745,471
Deferred revenue, noncurrent	$ 1,351,960	$ 1,332,387
Operating lease liabilities, noncurrent	$ 55,606	$ 56,374
Other liabilities, noncurrent	$ 325,497	$ 295,655
Total liabilities	$ 6,594,768	$ 6,614,079
Commitments and contingencies
Stockholders’ Equity
Common stock, Class A and Class B	$ 127	$ 127
Additional paid-in capital	$ 5,853,369	$ 5,694,549
Accumulated deficit	$ -1,255,268	$ -1,283,042
Accumulated other comprehensive income	$ 35,649	$ 16,756
Total CrowdStrike Holdings, Inc. stockholders’ equity	$ 4,633,877	$ 4,428,390
Non-controlling interest	$ 41,455	$ 44,215
Total stockholders’ equity	$ 4,675,332	$ 4,472,605
Total liabilities and stockholders’ equity	$ 11,270,100	$ 11,086,684

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