CrowdStrike Holdings, Inc.

Q1 revenue was $1.39 billion, up 26% year over year. Record Q1 net new ARR was $255.8 million, up 32% year over year, and ending ARR was $5.51 billion, up more than 24% year over year. Non-GAAP gross margin was 79%, with subscription gross margin at a record 81% of revenue, up 90 basis points year over year. Non-GAAP operating income was $325.7 million, up 62% year over year, and non-GAAP EPS was $1.10, both above guidance. GAAP net income was $27.8 million. Cash and cash equivalents were $4.55 billion, cash from operations was $590.9 million, and free cash flow was $468.5 million, or 34% of revenue. For Q2 FY27, the company guided revenue to $1.436 billion to $1.442 billion, net new ARR to $284 million to $286 million, ARR to $5.793 billion to $5.795 billion, and non-GAAP EPS to $1.16 to $1.17 before stock split adjustment. For FY27, it guided revenue to $5.915 billion to $5.959 billion, ARR to $6.532 billion to $6.556 billion, and net new ARR to $1.279 billion to $1.303 billion, with full-year free cash flow margin expected to be at least 30%.

George Kurtz framed CrowdStrike as a core layer of ‘AI infrastructure’ and said the market now recognizes cybersecurity as necessary to safely deploy AI at scale. He emphasized that the ‘Mythos’ moment, Project QuiltWorks, and rising enterprise use of AI agents are creating a new wave of demand across endpoint, SIEM, cloud, identity, and AIDR. His tone was highly confident and expansionary, repeatedly describing the opportunity as larger than prior security transitions and saying the company is at an inflection point.

Burt Podbere highlighted broad-based execution and cited record Q1 net new ARR of $255.8 million, record revenue of $1.39 billion, record non-GAAP operating income of $325.7 million, and record free cash flow of $468.5 million. He noted gross margin strength at 79% overall and 81% for subscription, plus $4.55 billion of cash and cash equivalents. On capital allocation, he said the company repurchased $176 million of stock at an average price of $365.63 and still has about $1.3 billion remaining under authorization. He also laid out the raised outlook, including FY27 net new ARR growth of 27.7% at the midpoint and at least 30% free cash flow margin for the full year.

Analysts focused on what drove the raised ARR guide, timing of the AI demand inflection, and whether spending was incremental or just budget reallocation. Management said the biggest near-term drivers were strong module adoption, retention, record Q2 pipeline, and the ‘Mythos’ inflection around AI security. They said demand started building in late March, accelerated after April’s Mythos events, and remains early but broadening from developers into more enterprise functions. Management also said AI security spend is largely incremental, tied to new token budgets and the need to secure AI adoption faster.