CRWD · Q1 2027 Earnings

Bullish

CrowdStrike

Reported June 3, 2026

30-second summary

Revenue grew 25.6% YoY to $1.39B and net new ARR landed at $256M (+32% YoY) — above the $249–251M guide and pacing to the H1 seasonality split management laid out last quarter. The bigger signal: management raised FY27 net new ARR growth expectations by 520bps at the midpoint to +27.7%, characterised as "an acceleration over the prior fiscal year." FY27 revenue, EPS, ARR, and operating income all raised at the midpoint; non-GAAP operating margin came in at 24%, holding the FY27 floor a quarter into the year.

Headline numbers

EPS

Q1 FY2027

$1.10

Revenue

Q1 FY2027

$1.39B

+25.6% YoY

Gross margin

Q1 FY2027

75.3%

Free cash flow

Q1 FY2027

$0.47B

Operating margin

Q1 FY2027

-2.2%

Key financials

Q1 FY2027

Metric	Q1 FY2027	Q1 FY2026	YoY	Q4 FY2026	QoQ
Revenue	$1.39B	$1.10B	+26.0%	$1.30B	+6.5%
EPS	$1.10	$0.73	+50.7%	$1.12	-1.8%
Gross margin	75.3%	78.0%	-270bps	75.8%	-50bps
Operating margin	-2.2%	18.0%	-2020bps	-0.5%	-170bps
Free cash flow	$0.47B	$0.28B	+68.5%	$0.38B	+25.0%

Guidance

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q1 FY2027	$1.360 - $1.364 billion	$1.39 billion	+$0.026-0.030 billion above guide	Beat
Non-GAAP Net Income Per Share	Q1 FY2027	$1.06 - $1.07	$1.10	+$0.03-0.04 above guide	Beat
Recurring Revenue (ARR)	Q1 FY2027	$5,501.8 - $5,503.8 million	$5,510 million	+$6.2-8.2 million above guide	Beat
Non-GAAP Income from Operations	Q1 FY2027	$308.0 - $310.4 million	$335.2 million	+$24.8-27.2 million above guide	Beat

New guidance

Metric	Period	Guide	YoY
Non-GAAP Net Income	FY 2027	$1,263.1 - $1,285.2 million	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY 2027	$5,867.6 - $5,927.6 million	$5,914.7 - $5,958.7 million	+$47.1 - $31.1 million (midpoint +$39.1M)	Raised
Non-GAAP Net Income Per Share	FY 2027	$4.78 - $4.90	$4.88 - $4.96	+$0.10 - $0.06 (midpoint +$0.08)	Raised
Recurring Revenue (ARR)	FY 2027	$6,465.8 - $6,516.4 million	$6,531.7 - $6,555.5 million	+$65.9 - $15.3 million (midpoint +$40.6M)	Raised
Net New ARR Growth	FY 2027	Not explicitly stated as % in prior guidance	27.7% at the midpoint	—	Raised
Non-GAAP Income from Operations	FY 2027	$1,422.2 - $1,462.2 million	$1,452.3 - $1,480.3 million	+$30.1 - $18.1 million (midpoint +$24.1M)	Raised

Segment performance

Q1 FY2027

Segment	Q1 FY2027	Q1 FY2026	YoY
Subscription Revenue	$1.32B	$1.051B	+25.6%
Professional Services Revenue	$0.06B	$0.053B	+13.2%

Platform metrics

Q1 FY2027

Segment	Q1 FY2027	Q1 FY2026	YoY
Annual Recurring Revenue (ARR)	$5.51 billion	$4.44 billion	—
Net New ARR	$256 million	$193.8 million	—
Net New ARR Growth YoY	32%	—	—
Module Adoption - 6+ Modules	51%	—	—
Module Adoption - 8+ Modules	25%	—	—

Profitability

Q1 FY2027

Segment	Q1 FY2027
Subscription Gross Margin (Non-GAAP)	81%
Operating Margin (Non-GAAP)	24%
Free Cash Flow Margin	34%

Management tone

The press release commentary this quarter strikes a notably more assertive posture. CEO George Kurtz frames Q1 as "the Mythos moment" where "the worlds of cybersecurity and frontier AI collided," positioning CrowdStrike as "AI security infrastructure, critical to successful AI adoption." The closing triplet — "The technology is here. The team is here. And the market opportunity is ours." — uses declarative possessive ("ours") language that is the most assertive market-positioning rhetoric management has put on the wire post-outage.

CFO Burt Podbere's framing of the raise names four tailwinds with no offsetting headwind: "Our record Q2 pipeline, continued strong retention, Falcon Flex momentum, and the AI technology wave are each tailwinds giving us conviction in CrowdStrike's growth trajectory." The absence of any acknowledged drag — after several quarters in which outage-related items or CCP amortization were named — is itself the tone signal. Combined with the explicit "now an acceleration over the prior fiscal year" framing on FY27 net new ARR, the posture has shifted from defending recovery to claiming acceleration.

Answers to last quarter's watch list

Q1 FY27 net new ARR vs the $249–251M guide. Net new ARR landed at $256M (+32% YoY), clearing the high end of the guide by $5–7M. This validates the H1 41/59 seasonality framing and keeps FY27 on the now-raised +27.7% trajectory — management would not have raised the full-year net new ARR midpoint by 520bps without Q1 hitting cleanly.

Resolved positively

Falcon Flex ARR growth from the $1.69B base. The press release commentary cites "Falcon Flex momentum" as one of four named tailwinds underwriting the FY27 raise, but no updated dollar figure for Flex ARR was disclosed in the materials available. The qualitative posture is unchanged-to-better, but the buyside ask for an updated Flex ARR number went unanswered on the print.

Continue monitoring

Signal/Seraphic/Pangea integration milestones. No quantified contribution from the three acquisitions was disclosed in the press release. The FY27 raise appears to be underwritten by core platform momentum (record pipeline, Flex, AI tailwind) rather than a step-up in acquired contribution — consistent with last quarter's "minimal organic contribution" assumption holding.

Continue monitoring

Non-GAAP operating margin sustainment at/above 24%. Q1 non-GAAP operating margin came in at 24%, beating the implied ~22.6% guide midpoint by 140bps and holding the FY27 floor in the seasonally weakest quarter. The FY27 operating income guide of $1.452–1.480B on $5.915–5.959B revenue now implies ~24.5–24.8% — confirming the floor and pointing to the H2 above-25% outcome that would force a rerating of FY27 ≥24% as a floor rather than a ceiling.

Resolved positively

NextGen SIEM growth durability off the $585M base. No updated SIEM-specific ARR figure was disclosed in the press release. The standalone SIEM disclosure restored last quarter was not repeated this quarter — a conspicuous omission given how central SIEM is to the NextGen SOC displacement thesis.

Continue monitoring

AWS and Microsoft marketplace traction. No updated FY27 marketplace TCV figure was disclosed. The hyperscaler-distribution thesis has not been refreshed with a new data point this quarter.

Continue monitoring

DOJ/SEC inquiry status. No update disclosed. The largest live overhang remains undisclosed.

Continue monitoring

What to watch into next quarter

Q2 FY27 net new ARR implied by the ARR guide. Ending ARR Q2 guide of $5,792.6–5,794.6M off the $5,510M Q1 base implies Q2 net new ARR of $283–285M (+~7–8% YoY off Q2 FY26's $221M = +28–29% YoY). Watch whether the actual Q2 net new ARR clears $285M, which would imply the H1 cadence is running ahead of even the raised +27.7% FY trajectory.

Subscription revenue growth sustainment above 25%. The jump to +25.7% in Q1 marks the post-outage high — watch whether Q2 holds the line as the CCP amortization wedge fully clears and the comparison comp stiffens.

Non-GAAP operating margin in Q2. Q2 operating income guide of $345.6–349.1M on $1,436–1,442M revenue implies ~24.1–24.2% margin — basically holding the Q1 print. The H2 reacceleration thesis requires margin to step up into the 25%+ zone; a flat sequential Q2 margin print would push the burden of proof entirely onto H2.

Falcon Flex ARR disclosure restored. The Q4 FY26 disclosure of $1.69B Flex ARR (+120% YoY) set the bar; the absence of an updated dollar figure this quarter is conspicuous. Watch whether Q2 restores standalone Flex disclosure or whether the company is moving Flex into qualitative-only commentary as it becomes the licensing standard.

NextGen SIEM ARR disclosure restored. Same dynamic — $585M (+75% YoY) was disclosed in Q4, omitted in Q1. The SIEM displacement thesis hinges on continued disclosure; missing it for two consecutive quarters would be a tone signal.

DOJ/SEC inquiry status. Still the largest undisclosed overhang. Any movement materially changes the risk profile.

Sources

CrowdStrike Q1 FY2027 press release, June 3, 2026 — https://www.sec.gov/Archives/edgar/data/1535527/000153552726000022/crwd-20260603xex991.htm

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