Key Highlights

  • Net new ARR was $332.8 million, up 51% year on year, the highest to date, with total ARR of $5.84 billion, up 25%.
  • Total Revenue was $1.47 billion, up 26%, and free Cash Flow was $377.4 million, up from $283.6 million.
  • The company raised its fiscal 2027 net new ARR growth outlook by 630 basis points to 34% at the midpoint.

Highest net new annual Recurring Revenue to date

CrowdStrike Holdings (NASDAQ:CRWD) reported results for its second fiscal quarter of 2027, ended 31 July 2026, on 26 August 2026. Net new annual recurring revenue (ARR) was $332.8 million, up 51% year on year and the highest the company has reported. Total ARR reached $5.84 billion, up 25%. The company effected a four-for-one Stock Split after the close of trading on 1 July 2026.

Total revenue was $1.47 billion, up 26% from $1.17 billion, with subscription revenue of $1.40 billion, up 27%.

The distinction matters. ARR growth of 25% describes the whole installed base, whereas the 51% rise in net new ARR describes additions during the quarter alone. Faster additions can lift the growth rate of the base in later periods, although the company has not forecast that and the relationship depends on renewals and churn, which the release does not quantify.

Profitability and cash flow

On a GAAP basis, the company recorded a loss from operations of $33.2 million, narrower than the $105.5 million loss a year earlier. Non-GAAP income from operations was $371.6 million, against $255.0 million. GAAP Diluted Earnings per Share were $0.01, compared with a loss of $0.07, and non-GAAP diluted earnings per share were $0.31, up from $0.23.

Operating cash flow was $530.3 million, up from $332.8 million, and free cash flow was $377.4 million, up from $283.6 million. Cash and cash equivalents stood at $5.01 billion at quarter-end.

Non-GAAP Operating Income was roughly 25% of revenue, while the GAAP operating result was a small loss of about 2% of revenue. The difference reflects items the company excludes from its non-GAAP measures, so both views are relevant.

Platform adoption and AI security

The company said ending ARR from customers using its Falcon Flex licensing model exceeded $2.29 billion, up 101% year on year. Some 51% of subscription customers used six or more modules, 35% used seven or more and 26% used eight or more. CrowdStrike also reported its highest net new ARR from new customers to date.

On product, it launched Continuous Identity for AI Agents and extended its Falcon AI Detection and Response offering to several AI gateway partners. It announced a collaboration with Cerebras Systems and an expanded Partnership with Schwarz Digits, including an agreement to acquire XM Cyber's technology assets. Chief Executive George Kurtz said securing AI is the company's largest market opportunity.

Guidance: forecasts, not results

For the third quarter, which ends on 31 October 2026, CrowdStrike guided to revenue of $1,523.2 million to $1,529.2 million and non-GAAP earnings per share of $0.31. For the full fiscal year ending 31 January 2027, it guided to revenue of $5,991.1 million to $6,011.1 million and non-GAAP earnings per share of $1.25 to $1.26.

The company also raised its fiscal 2027 net new ARR growth outlook by 630 basis points to 34% at the midpoint. These are management expectations and may differ from outcomes. The third-quarter figures, once reported, will show how closely the Business tracked these ranges and whether the ARR outlook holds.

What to watch

Points to watch include the third-quarter report against the guidance above, continued Falcon Flex uptake and progress integrating the announced acquisition.