Key Takeaways:
- Revenue hit $1.39B, topping consensus of $1.36B by 2.2%.
- Adjusted EPS of $1.10 beat estimates by $0.03 per share.
- Shares fell 9% after hours despite a 4-for-1 stock split announcement.
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CrowdStrike beats Q1 estimates by $30M but stock slides 9% on high expectations
CrowdStrike reported Q1 revenue of $1.39B, beating estimates by $30M, but shares slid 9% after hours on elevated expectations.
"In Q1, the worlds of cybersecurity and frontier AI collided: this was the Mythos moment," Chief Executive Officer George Kurtz said in the earnings release. "CrowdStrike is AI security infrastructure, critical to successful AI adoption."
The cybersecurity firm posted adjusted earnings per share of $1.10, topping the $1.07 consensus compiled by LSEG. Net income swung to $27.8M, or 11 cents per share, from a net loss of $104.3M, or 42 cents per share, a year earlier. Revenue grew 26% from the prior-year period.
Net new annual recurring revenue reached $255.8M, up 32% year over year, landing in the middle of the range that prediction markets had set. Falcon Flex ARR surged more than 120% to $1.69B, with more than 1,600 Flex customers. The company's AIDR product grew more than five times versus the prior quarter, Kurtz said.
The 9% decline erased roughly $20B in market value, reflecting expectations that had run ahead of results. Shares closed at $747.61 before the drop, up about 60% year to date and well above the $564 analyst consensus target.
CrowdStrike raised its FY27 net new ARR growth guidance by 520 basis points to 27.7% at the midpoint and forecast Q2 revenue of about $1.44B, roughly in line with the $1.43B estimate. The company also announced a 4-for-1 stock split, with a record date of June 25 and split-adjusted trading beginning July 2.
The company is among a wave of cybersecurity firms benefiting from surging demand for AI-powered threat detection as advanced models such as Anthropic's Mythos accelerate the pace of cyberattacks. CrowdStrike is testing Mythos through Project Glasswing and has spent $740M on acquisitions of identity security startup SGNL and AI security startup Pangea.
The guidance raise signals management expects AI-driven demand to sustain its momentum. Investors will watch the Q1 earnings call at 5 PM ET for details on Falcon Flex renewal rates, Charlotte AI monetization, and the path to GAAP profitability.
This article is for informational purposes only and does not constitute investment advice.
[1] CrowdStrike narrowly beats estimates on AI tailwinds, but stock falls 9%[2] CrowdStrike (CRWD) Q1 FY27 earnings results in-line with EPS whisper number, beat revenue estimates[3] CrowdStrike: Fiscal Q1 Earnings Snapshot[4] Live: Can CrowdStrike Deliver Another Blowout Quarter With Q1 Earnings Tonight?
