CrowdStrike shares jumped more than 10% in extended trading Wednesday after the cybersecurity company beat second-quarter expectations and raised its fiscal 2027 outlook.
Revenue climbed 26% year over year to $1.47 billion, ahead of the $1.44 billion analysts expected, while adjusted earnings reached $0.31 per share, topping the $0.29 consensus.
Subscription revenue increased 27% to $1.40 billion, helping CrowdStrike post $332.8 million in net new annual recurring revenue, the strongest quarter in company history. Total ARR ended July at $5.84 billion, up 25% from a year earlier.
Falcon Flex and AI security drive growth
A major contributor to the quarter was Falcon Flex, CrowdStrike's flexible licensing model. Ending ARR from customers using Falcon Flex exceeded $2.29 billion, up 101% year over year. The company also reported stronger adoption across its platform, with 51% of subscription customers now using six or more modules.
The growth comes as cybersecurity demand increasingly intersects with artificial intelligence. CrowdStrike has been expanding tools designed to protect AI agents, identities and cloud workloads, while CEO George Kurtz described securing enterprise AI as the company's largest market opportunity.
That theme has also supported investor interest in CRWD stock despite earlier concerns about valuation following its four-for-one stock split. Broader technology sentiment has remained volatile, with recent stock market weakness concentrated in high-growth technology names.
CrowdStrike lifts full-year guidance
CrowdStrike now expects fiscal 2027 revenue of $5.991 billion to $6.011 billion, up from its previous forecast of $5.91 billion to $5.96 billion. Third-quarter revenue is projected at $1.523 billion to $1.529 billion.
Management also raised its full-year net new ARR growth outlook by 630 basis points, targeting about 34% growth at the midpoint.
Cash generation strengthened alongside revenue. Operating cash flow reached a Q2 record of $530 million, while free cash flow rose to $377 million. GAAP operating loss narrowed sharply to $33.2 million from $105.5 million a year earlier.
The results arrive during a closely watched technology earnings season, with investor attention still focused on whether AI-related spending can translate into durable profits. Recent moves across AI stocks underline how sensitive valuations remain to growth and guidance.
For CrowdStrike, the latest quarter strengthens the case that demand for cloud security and AI protection remains resilient. Reuters Investors will now be watching whether record net new ARR can sustain that momentum into the second half of the fiscal year.
