CrowdStrike posts record ARR growth, raises full-year outlook

Investing.com -- CrowdStrike reported stronger-than-expected first-quarter fiscal 2027 results on Wednesday, posting record annual recurring revenue (ARR) growth and cash generation as demand for AI-driven cybersecurity services accelerated, prompting the company to raise its full-year outlook and announce a four-for-one stock split.

The cybersecurity company reported first-quarter revenue of $1.39 billion, up 26% from a year earlier, versus the consensus estimate of $1.36 billion. Revenue growth was helped by strength subscription revenue also rose 26% to $1.32 billion. ARR increased 24% year over year to $5.51 billion, with record net new ARR of $255.8 million added during the quarter.

Chief Executive Officer George Kurtz said the convergence of artificial intelligence and cybersecurity is creating a significant growth opportunity for the company, pointing to strong customer adoption, new customer wins and increased partner engagement as reasons for raising its fiscal 2027 ARR outlook.

CrowdStrike’s adjusted net income rose to $283.4 million from $184.7 million, while adjusted earnings per share increased to $1.10 from $0.73 a year ago.

The company said it now expects fiscal 2027 revenue of $5.91 billion to $5.96 billion and adjusted earnings per share of $4.88 to $4.96. It also increased its full-year net new ARR growth forecast, citing a strong second-quarter pipeline, robust customer retention and momentum in its Falcon Flex platform.

Separately, CrowdStrike's board approved a four-for-one stock split in the form of a stock dividend. Shareholders of record on June 25 will receive three additional shares for each share held, with split-adjusted trading expected to begin on July 2.

During the quarter, CrowdStrike expanded its AI-focused security initiatives, including Project QuiltWorks with OpenAI and Anthropic, the Charlotte AI AgentWorks platform developed with AWS, NVIDIA and OpenAI, and new AI security and cloud protection capabilities across its Falcon platform.

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