CrowdStrike Results Beat Both Estimates but Still Sold Off. Drops Over 11% After Hours, Plans 4-for-1 Stock Split in July
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CrowdStrike reported Q1 FY2027 revenue of $1.39 billion, up 26% YoY, exceeding expectations. Subscription revenue grew 26% YoY to $1.32 billion. GAAP net income was $27.8 million, a year-on-year improvement. Non-GAAP EPS of $1.10 surpassed market estimates of $1.07. Annual Recurring Revenue (ARR) reached $5.51 billion, a 24% YoY increase. Gross subscription margins improved to 78% (GAAP) and 81% (non-GAAP). The company projected Q2 revenue between $1.436 billion and $1.442 billion and announced a 4-for-1 stock split. Despite strong results, the stock declined 11.09% post-announcement.
TradingKey - On June 3, Eastern Time, cybersecurity firm CrowdStrike ( CRWD) released its first-quarter fiscal 2027 financial results after the U.S. market close. As of press time, the company's stock fell 11.09% to $664.71.
During the period, CrowdStrike recorded revenue of $1.39 billion, up 26% year-on-year and exceeding market expectations of $1.36 billion. Of this, subscription revenue grew 26% year-on-year to $1.32 billion, representing nearly all of the company's revenue.
On the profit side, net income under GAAP was $27.8 million, turning a profit year-on-year, with a corresponding adjusted EPS of $0.11, compared to a loss of $0.42 in the same period last year. Non-GAAP net income was $283.4 million, compared to $184.7 million in the same period last year, with an adjusted EPS of $1.10, higher than the $0.73 from a year ago and market expectations of $1.07.
As of April 30, 2026, Annual Recurring Revenue (ARR) grew 24% year-on-year to $5.51 billion, with $255.8 million representing net new ARR for the quarter.
Regarding gross margins, the GAAP subscription gross margin was 78%, compared to 77% in the first quarter of fiscal 2026. The non-GAAP subscription gross margin was 81%, compared to 80% in the first quarter of fiscal 2026.
In terms of guidance, CrowdStrike expects second-quarter revenue to range from $1.436 billion to $1.442 billion; non-GAAP adjusted EPS is projected to be between $1.16 and $1.17; and Annual Recurring Revenue is expected to be in the range of $5.793 billion to $5.795 billion.
For full-year guidance, CrowdStrike expects revenue to reach between $5.915 billion and $5.959 billion.
Additionally, CrowdStrike announced a 4-for-1 stock split scheduled for July. The company's stock closed at $747.61 on Wednesday.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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