Q2 FY2027 results
| Metric | Result | Change |
|---|---|---|
| Net new ARR | $333 million | 51% year-over-year growth |
| Total Revenue | $1.47 billion | 26% year-over-year growth |
| Operating Income | $372 million | 46% year-over-year growth |
| Free Cash Flow | $377 million | 33% year-over-year growth |
| Ending ARR | $5.84 billion | 25% year-over-year growth |
Guidance and outlook
- Q3 FY2027 ARR: $6.184 billion to $6.188 billion
- Q3 FY2027 Revenue: $1.523 billion to $1.529 billion
- Full Year FY2027 ARR: $6.603 billion to $6.612 billion
- Full Year FY2027 Revenue: $5.991 billion to $6.011 billion
- Full Year FY2027 Net New ARR: $1.350 billion to $1.359 billion
How management sounded
Confident (+8 on our -10 to +10 scale). Management reported record-breaking financial metrics across the board and raised full-year guidance due to sustained demand for AI security. Management sounded more upbeat than on 92% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Market Demand
Asked: Analysts asked about the durability of the demand environment following the Mythos moment.
Answer: Management stated that the demand is a sustainable tailwind because AI adoption creates security and compliance needs that every company must address.
AI Governance
Asked: Analysts asked how CrowdStrike helps customers with AI governance and cost control.
Answer: CrowdStrike provides policy enforcement, token tracking, and cost management features to help CIOs secure AI deployments while managing expenses.
AIDR Product
Asked: Analysts asked if AIDR is a substitute for EDR or an incremental product.
Answer: AIDR is a separate, incremental module priced separately, though it leverages the same platform and agent architecture as the core product.
Exposure Management
Asked: Analysts asked why CrowdStrike is winning in the exposure management market.
Answer: Legacy vulnerability management cannot keep up with the speed of AI-driven threats, whereas CrowdStrike offers autonomous prioritization and detection.
What to watch before the next call
- The integration and performance of the XM Cyber technology assets in the second half of FY2027.
- The continued adoption rate of the Falcon Flex subscription model and its impact on ARR uplift.
- The impact of the Fal.Con conference on pipeline generation.
