CrowdStrike beats fiscal Q2 revenue estimates, raises full-year guidance on record ARR growth

CrowdStrike just turned in the kind of quarter that makes CFOs sleep soundly and short sellers lose it. The cybersecurity company reported fiscal second-quarter revenue of $1.47 billion, a 26% year-over-year increase, while raising its full-year guidance on the back of record demand for its Falcon platform. The real headline number: net new annual recurring revenue hit $333 million for the quarter, a 51% surge compared to the same period last year. Breaking down the numbers Subscription revenue came in at $1.40 billion, a 27% increase year-over-year and represents roughly 95% of total revenue. Total ending ARR now stands at $5.84 billion, up 25% from the prior year. Cash generation was equally impressive. Operating cash flow hit $530 million for the quarter, with free cash flow clocking in at $377 million. Perhaps the most symbolically important line item: GAAP net income turned positive at $5.3 million. Falcon Flex fuels the upgrade The company raised its full-year FY2027 net new ARR growth guidance to 34% at the midpoint, an increase of 630 basis points from prior forecasts. A major catalyst behind the optimism is Falcon Flex, CrowdStrike’s flexible consumption model that lets cu...