CrowdStrike Holdings Inc. (NASDAQ:CRWD) shares jumped around 8% in premarket trading on Thursday after the cybersecurity specialist delivered second-quarter results ahead of Wall Street expectations and raised its full-year forecasts.
The company reported earnings of $0.31 per share, exceeding the analyst consensus of $0.29. Revenue reached $1.47 billion, also coming in ahead of expectations of $1.44 billion.
CrowdStrike’s performance was supported by accelerating annual recurring revenue, strong Falcon Flex adoption and continued demand across its cybersecurity portfolio as businesses increase investment in protecting artificial intelligence workloads.
CrowdStrike raises fiscal 2027 forecasts
For fiscal 2027, CrowdStrike now expects earnings of between $1.25 and $1.26 per share.
Full-year revenue is projected at between $5.99 billion and $6.01 billion, comfortably above the analyst consensus of $5.93 billion.
Jefferies analysts highlighted the company’s strengthening momentum and increased their price target to $240 from $230.
“CRWD is clearly benefiting from post-Mythos tailwinds & expressed high confidence in guide, which implies 2 more quarters of acceleration given pipeline, Flex & broad-based portfolio strength,” said Jefferies analysts led by Joseph Gallo.
Subscription margins strengthen
CrowdStrike also delivered year-on-year improvements in subscription profitability.
GAAP subscription gross margin increased to 78% from 77% in the same quarter last year, while non-GAAP subscription gross margin reached 81%, up from 80%.
The improvement accompanies strong growth in new recurring business, reinforcing the company’s ability to scale its cybersecurity platform while maintaining healthy margins.
“Q2 was the best quarter in CrowdStrike’s history,” said George Kurtz, CrowdStrike’s Founder and Chief Executive Officer. “Delivering record Falcon Flex results, record net new ARR, and accelerating growth—the Falcon is soaring. We’re raising our full year fiscal 2027 net new ARR growth outlook by 630 basis points. The Mythos moment translated into mass-market acceptance that AI adoption needs security, and that’s CrowdStrike. Every enterprise will run on AI, and securing it is the largest market opportunity in our history.”
Record recurring revenue supports growth outlook
Chief Financial Officer Burt Podbere said CrowdStrike generated record net new annual recurring revenue of $333 million during the quarter.
The company subsequently increased its fiscal 2027 net new ARR growth forecast to 34% at the midpoint, providing further evidence of accelerating demand.
With record Falcon Flex performance, expanding subscription margins and growing demand for AI-related cybersecurity, CrowdStrike enters the remainder of fiscal 2027 with positive momentum and an upgraded financial outlook.
Crowdstrike stock price
