CrowdStrike (CRWD) Q1 2026 earnings summary

Executive summary

• Fiscal Q1 FY26 saw ARR reach $4.44B, up 22% year-over-year, with $194M in net new ARR and strong Falcon Flex adoption driving larger deals and rapid customer expansion.

• Total revenue grew 20% year-over-year to $1.10B, with subscription revenue at $1.05B and professional services at $52.7M.

• Free cash flow was $279M (25% margin), and cash and equivalents reached a record $4.61B.

• Non-GAAP operating income was $201.1M (18% margin); non-GAAP net income was $184.7M ($0.73 per diluted share); GAAP net loss was $110.2M, impacted by July 19 Incident-related costs.

• Strategic partnerships, new AI and cloud innovations, and a $1B share repurchase authorization highlighted the quarter.

Financial highlights

• Q1 net new ARR was $194M, with ending ARR at $4.44B, up 22% year-over-year.

• Total revenue was $1.10B, up 20% year-over-year; subscription revenue was $1.05B, up 20% year-over-year.

• Subscription gross margin was 80% (non-GAAP), total gross margin was 78% (non-GAAP), and free cash flow margin was 25%.

• Non-GAAP operating income was $201.1M (18% margin); non-GAAP EPS was $0.73.

• Cash and cash equivalents were $4.61B as of April 30, 2025.

Outlook and guidance

• Q2 FY26 revenue guidance: $1,144.7M–$1,151.6M; non-GAAP operating income: $226.9M–$233.1M; non-GAAP EPS: $0.82–$0.84.

• FY26 revenue guidance: $4,743.5M–$4,805.5M; non-GAAP operating income: $970.8M–$1,010.8M; non-GAAP EPS: $3.44–$3.56.

• Sequential net new ARR growth in Q2 expected to be at least double the prior year’s Q1–Q2 increase.

• FY27 non-GAAP operating margin target raised to at least 24%; free cash flow margin expected to exceed 30%.