CrowdStrike Beats Q1 FY2027 Expectations, Raises Outlook Despite After-Hours Stock Decline

CrowdStrike Holdings (NASDAQ: CRWD) delivered stronger-than-expected first-quarter fiscal 2027 results, driven by accelerating demand for AI-powered cybersecurity solutions. The company reported robust revenue growth, record annual recurring revenue (ARR), and strong cash generation, prompting management to raise its full-year guidance and approve a four-for-one stock split.

For the quarter, CrowdStrike posted revenue of $1.39 billion, representing a 26% increase compared to the same period last year and exceeding analysts’ expectations of $1.36 billion. Subscription revenue also climbed 26% year-over-year to $1.32 billion, highlighting continued customer demand for the company’s cybersecurity platform.

Annual recurring revenue reached $5.51 billion, up 24% from a year earlier. CrowdStrike added a record $255.8 million in net new ARR during the quarter, reflecting strong customer acquisition and expansion across its security offerings.

Adjusted net income increased to $283.4 million from $184.7 million in the prior-year period. Adjusted earnings per share rose to $1.10, compared with $0.73 a year ago, outperforming market expectations.

Despite the positive financial results, CrowdStrike shares fell approximately 8% in after-hours trading. Investors appeared concerned about rising operating expenses, which totaled $1.07 billion during the quarter, compared with $934.3 million in the same period last year.

CEO George Kurtz emphasized that the growing convergence of artificial intelligence and cybersecurity is creating significant opportunities for long-term growth. He cited strong customer adoption, new business wins, and expanding partner relationships as key factors behind the company’s decision to raise its fiscal 2027 ARR forecast.

CrowdStrike now expects full-year fiscal 2027 revenue between $5.91 billion and $5.96 billion. The company also increased its adjusted earnings-per-share guidance to a range of $4.88 to $4.96 and raised its forecast for net new ARR growth, supported by a healthy second-quarter sales pipeline, strong customer retention, and increasing adoption of its Falcon Flex platform.

The cybersecurity leader continues to expand its artificial intelligence initiatives through partnerships and projects involving OpenAI, Anthropic, AWS, and NVIDIA. Recent developments include Project QuiltWorks, Charlotte AI AgentWorks, and enhanced AI security and cloud protection capabilities across the Falcon platform.

Additionally, CrowdStrike’s board of directors approved a four-for-one stock split through a stock dividend. Shareholders on record as of June 25 will receive three additional shares for every share owned, with split-adjusted trading expected to begin on July 2, 2026.