CrowdStrike reported fiscal 2027 first-quarter revenue of $1.39 billion and adjusted earnings per share of $1.10 for the quarter ended April 30, exceeding analyst estimates of $1.36 billion and $1.07 respectively. The cybersecurity company announced a 4-for-1 stock split with split-adjusted trading expected to begin on July 2, while shares fell more than 11% to around $664 following the Wednesday evening earnings release despite the beat-and-raise results. CEO George Kurtz attributed the strong performance to AI adoption driving dual demand vectors: enterprises requiring security solutions before deploying AI systems, and an explosion in greenfield attack surfaces from new technology infrastructure requiring cybersecurity throughout supply chains.
CrowdStrike Reports Fiscal Q1 2027 Earnings Beat
Revenue in CrowdStrike's fiscal 2027 first quarter increased 26% year over year to $1.39 billion, exceeding the $1.36 billion consensus estimate, according to LSEG. Adjusted earnings per share surged 51% to $1.10 in the quarter ended April 30, ahead of the $1.07 estimate, LSEG data showed. CrowdStrike shares closed at a record high of $782 on Monday before the earnings announcement.
The company's price target was increased to $750 per share from $650, while maintaining a hold-equivalent 2 rating. Shares fell more than 11% to around $664 following the Wednesday evening earnings release.
Company Announces 4-for-1 Stock Split
CrowdStrike announced a 4-for-1 stock split, with trading on a split-adjusted basis expected to begin on July 2. The split aims to make the stock more accessible to investors as the share price had reached prohibitive levels. Investors holding shares before the split will receive four times the number of shares at a quarter of the original per-share cost.
AI Adoption Drives Cybersecurity Demand Growth
CEO George Kurtz called Anthropic's Mythos model an "inflection moment," stating on the post-earnings call that the powerful, yet-to-be-released model highlighted the "relevance for defenders in identifying vulnerabilities much faster than before, including the chaining of multiple vulnerabilities to create lethal cyberattacks." Anthropic initially made the Mythos model available to 11 organizations, including CrowdStrike and Palo Alto Networks, through Project Glasswing. On Tuesday, Anthropic expanded the effort to include 150 organizations in more than 15 countries.
Kurtz said AI is driving demand for security solutions in two ways. First, clients need to secure AI systems before deployment, as companies cannot hand over important access codes to unsecured AI agents. Second, AI has led to "an explosion in greenfield attack surfaces, each of which needs cybersecurity," the CEO said. In cyberspeak, greenfield attack surfaces are potential vulnerabilities that arise from deploying brand-new technology.
Kurtz stated: "For the first time in my career, the market's view of cybersecurity's role has shifted from being viewed primarily through the lens of risk management, compliance, and protection, to being recognized as a strategic accelerator and a critical enabler of AI adoption." Asked about recent customer conversations, Kurtz said: "The biggest thing for me, when I asked what outcome the customer is looking for, it wasn't a technology outcome per se. It was, we need to solve the security issue because we want to deploy AI faster. We want to go faster in our business. Our CEO is demanding the adoption of AI. We cannot do it securely."
CrowdStrike Raises Full-Year Fiscal 2027 Guidance
For its full fiscal year 2027, CrowdStrike management hiked its outlook. Total revenue is expected to be between $5.91 billion and $5.96 billion, up from the prior range of $5.87 billion to $5.93 billion, and ahead of the expectations of $5.89 billion, according to LSEG. Adjusted EPS is forecast to be between $4.88 and $4.96, up from the previously provided $4.78 to $4.90 range, and also ahead of the $4.86 consensus estimate compiled by LSEG.
Annual Recurring Revenue (ARR) is expected to close out the year between $6.53 billion and $6.56 billion, up from the prior forecast of between $6.47 billion and $6.52 billion, also ahead of the $6.5 billion expected, according to FactSet.
For its fiscal 2027 second quarter, CrowdStrike issued guidance with total revenue expected to be between $1.44 billion and $1.45 billion, ahead of the expectations of $1.43 billion, according to LSEG. Adjusted EPS is expected to be between $1.16 and $1.17, essentially in line with estimates compiled by LSEG. ARR is expected to be between $5.79 billion and $5.8 billion, also ahead of the $5.77 billion expected, according to FactSet.
FAQ
What did CrowdStrike report for its fiscal 2027 first quarter?
CrowdStrike reported fiscal 2027 first-quarter revenue of $1.39 billion and adjusted earnings per share of $1.10 for the quarter ended April 30, exceeding analyst estimates of $1.36 billion and $1.07 respectively. Revenue increased 26% year over year, and adjusted EPS surged 51%.
When will CrowdStrike's 4-for-1 stock split take effect?
CrowdStrike announced a 4-for-1 stock split, with trading on a split-adjusted basis expected to begin on July 2. Investors will receive four times the number of shares at a quarter of the original per-share cost.
How is AI adoption driving demand for CrowdStrike's cybersecurity solutions?
CEO George Kurtz stated that AI drives demand in two ways: enterprises need to secure AI systems before deployment, and AI has created an explosion in greenfield attack surfaces from new technology infrastructure. Kurtz said customers emphasized needing to solve security issues to deploy AI faster, as their CEOs are demanding AI adoption but cannot proceed securely without cybersecurity solutions.
