ARR growth remains strong
Annual recurring revenue grew 25% year over year to $5.841 billion as of July 31, 2026, with $332.8 million of net new ARR added in the quarter.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Q2 FY2027 covers the three months ended July 31, 2026, during which CrowdStrike swung from a year-ago net loss to a narrow net profit. Management attributes the revenue expansion primarily to new customer additions and the sale of additional sensors and modules to existing customers. Total revenue rose 26%, and ARR reached $5.8 billion, up 25% year over year. The quarter still produced an operating loss, and the July 19 Incident continues to lengthen sales cycles and pressure customer commitment economics.
Cost of Revenue
$374M
+21.21% YoY
EPS (Diluted)
$0.01
+114.29% YoY
Operating Income
-$33.23M
+68.49% YoY
Source: SEC XBRL
CrowdStrike Holdings (CRWD) reported Q2 FY2027 revenue of $374M, up 21.2% year over year. CRWD's fiscal Q2 FY2027 corresponds to calendar Q3 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026This filing | 0.31 | 0.30 | Beat +3.9% |
| Jun 2026 | 0.28 | 0.27 | Beat +1.0% |
| Mar 2026 | 0.28 | 0.28 | Miss -0.4% |
| Dec 2025 | 0.24 | 0.24 | Beat +0.0% |
Adjusted (non-GAAP) EPS of $0.31 versus the $0.30 analyst consensus — a +3.9% beat for Sep 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.01.
Compiled by AI from 10-Q Item 2 of this filing
Annual recurring revenue grew 25% year over year to $5.841 billion as of July 31, 2026, with $332.8 million of net new ARR added in the quarter.
Source: 10-Q Item 2 MD&A
Dollar-based net retention rate improved sequentially as of July 31, 2026, though management cautions that customer incentives may reduce the metric in future periods.
Source: 10-Q Item 2 MD&A
Subscription gross margin increased one percentage point to 78% in Q2 FY2027, driven by hiring efficiencies, while professional services gross margin fell five points to 10% on higher employee-related costs.
Source: 10-Q Item 2 MD&A
Management states the July 19 Incident has caused delays in creating sales opportunities and longer sales cycles, and customer commitment packages have led to increased contraction and decreased upsell dollar values.
Source: 10-Q Item 2 MD&A
Research and development expenses increased 30% to $444.2 million, primarily due to a 17% increase in average R&D headcount and higher stock-based compensation.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 2 high, 3 medium, 0 low
The July 19 Incident has adversely affected, and is expected to continue to adversely affect, CrowdStrike's business, sales, customer and partner relations, reputation, results of operations, and financial condition. Existing or prospective customers have deferred or decided against purchases, and some have terminated or not renewed contracts.
Source: 10-Q Item 1A Risk Factors
CrowdStrike is party to securities litigation, derivative litigation, putative class actions, and government inquiries related to the July 19 Incident. Insurance coverage is expected to be insufficient for all costs, claims, and liabilities, which could materially harm the business.
Source: 10-Q Item 1A Risk Factors
The company has incurred net losses each year prior to fiscal 2024 and had an accumulated deficit of $1.2 billion as of July 31, 2026. Although profitable in recent quarters, CrowdStrike cannot assure when or whether it will reach sustained profitability.
Source: 10-Q Item 1A Risk Factors
Customers may renew with shorter subscription periods, fewer cloud modules, fewer endpoints, or smaller contract values, especially following the July 19 Incident and customer commitment packages. Failure to retain and expand customer relationships could materially harm results.
Source: 10-Q Item 1A Risk Factors
CrowdStrike faces intense competition from legacy antivirus providers, alternative endpoint security vendors, network security vendors, and larger competitors with greater resources. Competitive pricing pressure or bundling by rivals could reduce gross profits and market share.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue $M | 374.00 $M | 308.55 $M | +21.21% |
Gross Profit $B | 1.10 $B | 0.86 $B | +27.49% |
Operating Income $M | -33.23 $M | -105.46 $M | +68.49% |
Net Income $M | 5.31 $M | -70.15 $M | +107.56% |
EPS (Basic) $ | 0.01 $ | -0.07 $ | +114.29% |
EPS (Diluted) $ | 0.01 $ | -0.07 $ | +114.29% |
R&D Expense $M | 444.20 $M | 342.53 $M | +29.68% |
Answers draw on this SEC filing and the data on this page
In Q1 FY2027, CrowdStrike grew revenue 26% YoY to $1.4B, returned to $27.8M of net income attributable to CrowdStrike, and expanded gross margin to 75%, although it remained operating-loss-making and continues to face material July 19 Incident-related commercial and legal risks. Source: 10-Q Item 2 MD&A, pp.40-44.
CrowdStrike (CRWD) delivered strong FY2026 revenue growth with gross profit rising 21.2% to $3.59B, but net losses deepened sharply to -$162.5M as operating expenses surged, while operating cash flow remained robust at $1.61B.
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