CrowdStrike reported first-quarter fiscal 2027 results, raised its full-year guidance and announced a four-for-one stock split.
Annual recurring revenue reached USD $5.51 billion at the end of the quarter, up 24% from a year earlier. Net new ARR rose 32% to USD $255.8 million, while total revenue increased 26% to USD $1.39 billion from USD $1.10 billion a year earlier.
Subscription revenue, which accounts for most of the business, climbed 26% to USD $1.32 billion. Professional services revenue rose to USD $64.8 million from USD $52.7 million.
Profitability improved. GAAP net income attributable to CrowdStrike was USD $27.8 million, compared with a loss of USD $104.3 million a year earlier, while diluted earnings per share were USD $0.11 versus a loss of USD $0.42 in the prior-year period.
On a non-GAAP basis, income from operations rose 62% to USD $325.7 million from USD $201.1 million. Non-GAAP net income attributable to CrowdStrike increased to USD $283.4 million from USD $184.7 million, and diluted non-GAAP earnings per share rose to USD $1.10 from USD $0.73.
Cash generation was another highlight. Net cash from operations rose to USD $590.9 million from USD $384.1 million, while free cash flow reached a record USD $468.5 million, up from USD $279.4 million. CrowdStrike ended the quarter with USD $4.55 billion in cash and cash equivalents.
The company raised its outlook for both the current quarter and the full year. For the second quarter, it forecast total revenue of USD $1.436 billion to USD $1.442 billion, with annual recurring revenue of USD $5.7926 billion to USD $5.7946 billion.
For the full fiscal year, CrowdStrike projected total revenue of USD $5.9147 billion to USD $5.9587 billion and annual recurring revenue of USD $6.5317 billion to USD $6.5555 billion. Full-year non-GAAP income from operations is expected to be between USD $1.4523 billion and USD $1.4803 billion.
Management linked the stronger outlook to customer demand and product uptake across the Falcon platform. CrowdStrike added more than 300 Falcon Flex accounts during the quarter, and Flex subscription ARR surpassed USD $1.9 billion, growing 99% year on year.
Module adoption rates also increased. At the end of the quarter, 51% of customers were using six or more modules, 35% were using seven or more, and 25% were using eight or more.
Stock split
Alongside the earnings report, CrowdStrike said its board had approved a four-for-one split of the company's Class A common stock in the form of a stock dividend. Shareholders will receive three additional shares for every share they hold.
The move is CrowdStrike's first stock split since becoming a public company. Stock splits do not change a company's market capitalisation, but they increase the number of shares outstanding and reduce the price per share accordingly.
AI strategy
CrowdStrike used the quarter to highlight its push into artificial intelligence-related security products and partnerships. During the period, it expanded Project QuiltWorks, a coalition focused on AI risk that includes OpenAI and Anthropic, and launched the Charlotte AI AgentWorks Ecosystem with AWS, NVIDIA and OpenAI.
It also introduced new products and service extensions across managed detection and response, cloud security, data security and government offerings. CrowdStrike expanded cloud detection and response support to Google Cloud and broadened support for Microsoft Defender environments.
The quarter also included several partnership announcements, including collaborations with IBM, Intel and Schwarz Digits. CrowdStrike achieved FedRAMP High authorisation for Falcon for XIoT and expanded GovCloud offerings tied to AI use in the public sector.
The results come as investors continue to watch how software groups are turning AI-related spending into sustained revenue growth. For CrowdStrike, the latest figures suggest demand remained strong across both customer additions and spending by existing users.
"In Q1, the worlds of cybersecurity and frontier AI collided: this was the Mythos moment. CrowdStrike is AI security infrastructure, critical to successful AI adoption," said George Kurtz, Founder and Chief Executive Officer, CrowdStrike.
"Our record Q1 net new ARR, QuiltWorks coalition, and AIDR innovation are indicators of our own AI inflection point. We're seeing platform adoption from existing customers, new logo lands, and increased partner engagement, each giving me the conviction to significantly raise our FY27 net new ARR guidance. The technology is here. The team is here. And the market opportunity is ours," Kurtz said.
Commenting on the financial performance, Burt Podbere gave further detail on the company's revised outlook. "CrowdStrike delivered strong Q1 results, exceeding expectations across all guided metrics while accelerating growth and expanding profitability and cash flow. We delivered record Q1 net new ARR of $256 million, record cash flow from operations of $591 million, and record free cash flow of $468 million. We are raising our full-year net new ARR growth expectations to 27.7%, at the midpoint, now an acceleration over the prior fiscal year. Our record Q2 pipeline, continued strong retention, Falcon Flex momentum, and the AI technology wave are each tailwinds giving us conviction in CrowdStrike's growth trajectory," Podbere said.