CrowdStrike (CRWD) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 net new ARR of $256M, up 32% year-over-year, and total revenue of $1.39B, up 26% year-over-year, both exceeding guidance and accelerating for the fourth consecutive quarter.

• Free cash flow reached a record $468M (34% of revenue), and non-GAAP operating income hit $326M (24% of revenue), up 62% year-over-year.

• Platform adoption accelerated, with 51% of customers using six or more modules, and strong partnerships with leading AI and cloud providers.

• Announced a four-for-one stock split, effective July 2026, to increase accessibility for investors.

• Raised full-year net new ARR guidance by over $50M, citing AI-driven demand and the Mythos inflection point.

Financial highlights

• Q1 net new ARR: $255.8M, up 32% year-over-year; ending ARR: $5.51B, up 24% year-over-year.

• Total revenue: $1.39B, up 26% year-over-year; subscription revenue: $1.32B, up 26%; professional services revenue: $64.8M, up 23%.

• Non-GAAP gross margin: 79%; subscription gross margin: 81%, up 90 bps year-over-year.

• Non-GAAP net income: $283.4M ($1.10 per diluted share); GAAP net income: $27.8M.

• Cash and equivalents: $4.55B; record cash flow from operations: $590.9M; free cash flow: $468.5M (34% of revenue).

Outlook and guidance

• FY27 net new ARR growth guidance raised to 27.7% at midpoint, totaling $1.291B, a 520 bps increase from prior guidance.

• FY27 total revenue guidance: $5.915B–$5.96B, up 23%–24% year-over-year.

• FY27 non-GAAP operating income: $1.45B–$1.48B; non-GAAP net income: $1.263B–$1.285B; non-GAAP EPS: $4.88–$4.96.

• Q2 FY27 guidance: ARR $5.79B, revenue $1.44B, non-GAAP operating income $346M–$349M, EPS $1.16–$1.17.

• Free cash flow margin expected at 24.5% in Q2 and at least 30% for FY27.