CrowdStrike (CRWD) reported fiscal 2027 second-quarter results for the period ended July 31, 2026, with revenue of $1.47 billion, up 26% from a year earlier and above the $1.44 billion expectation cited in the report. Adjusted earnings per share came in at $0.31, also ahead of the $0.29 analyst estimate.
The cybersecurity company also posted GAAP net income of $5.3 million for the quarter, reversing earlier losses.
CrowdStrike returned to GAAP profitability in the quarter
According to CNBC, CrowdStrike generated total second-quarter revenue of $1.47 billion, marking 26% year-over-year growth. The sharpest change in the quarter was profitability under generally accepted accounting principles, with net income of $5.3 million compared with a net loss of $70.2 million in the same period last year.
Adjusted non-GAAP EPS was $0.31. The report said that figure reflected a recent stock split and came in above the $0.29 Wall Street estimate.
ARR reached $5.84 billion and net new ARR set a record
Annual recurring revenue, a closely watched metric in the software-as-a-service business, stood out in the quarter. CrowdStrike said ARR rose 25% year over year to $5.84 billion, while net new ARR reached a record $333 million.
The report said the result reflected stronger take-up of additional subscription modules by existing customers as well as adoption by new customers. ABMedia also said the company’s single-platform strategy helped lower the barrier for customers adding new services. The build-up of recurring revenue also supports steadier cash flow and gives the company a more predictable revenue base.
Operating cash flow rose to $530 million
Cash generation remained strong alongside the profit improvement. CrowdStrike reported operating cash flow of $530 million in the second quarter, up 59% from a year earlier. Free cash flow was $377 million, with free cash flow margin holding at 26%.
ABMedia said the company’s cash position gives it more financial flexibility in the face of potential competition, including for research and development spending, mergers and acquisitions, and share repurchases.
Management lifted full-year guidance
Following the quarter, CrowdStrike management raised its outlook for fiscal 2027. The company now expects full-year revenue of $5.991 billion to $6.011 billion and said full-year net new ARR growth is expected to reach 34%.
It also raised its full-year non-GAAP EPS forecast to $1.25 to $1.26. The report said management holds a positive view on operations in the second half of fiscal 2027.
Shares climbed after the earnings release
The original report said agentic artificial intelligence is driving demand for security tools as companies seek protection from increasing threats. In that setting, CrowdStrike and its competitors have all reached record-high share prices, with gains of more than 61% so far this year. CRWD rose more than 10% after the earnings report, according to the report.