Earnings call transcript: CrowdStrike tops Q2 2027 estimates, shares jump 10%

CrowdStrike Holdings reported better-than-expected Q2 2027 results, with fiscal second-quarter profit and revenue exceeding analyst estimates. The cybersecurity company raised its full-year outlook and highlighted accelerating demand for its AI-focused products. Adjusted earnings per share were $0.31 on revenue of $1.47 billion, surpassing the $1.44 billion forecast by $30 million.

Revenue grew by 26% year-over-year, with subscription revenue increasing by 27%. Net new annual recurring revenue (ARR) reached a record $333 million, and annual recurring revenue (ARR) grew more than 25% year-over-year. Non-GAAP operating income hit a record $372 million, representing 25% of revenue, while free cash flow reached a record $377 million, or 26% of revenue.

CrowdStrike's Falcon Flex commercial model continues to drive larger deals and broader platform adoption, contributing to the company's record growth. The company expects revenue between $5.991 billion and $6.011 billion and non-GAAP net income per share of $1.25 to $1.26 for fiscal 2027. Management attributes the growth to a record pipeline, continued momentum in the Falcon Flex model, and rising demand tied to AI security.

Chief Executive George Kurtz emphasized that the Q2 results set a new bar, stating that AI is driving more cyber attacks and cyber spending, making CrowdStrike's market an "arms race." The company's Falcon platform is described as the "cybersecurity's infrastructure layer for AI adoption." CFO Burt Podbere noted that the results underscore exceptional execution and the power of CrowdStrike's platform strategy.