CrowdStrike reported record net-new annual recurring revenue and raised its fiscal-year outlook as enterprises expanded spending across its Falcon cybersecurity platform. Revenue for the second quarter of fiscal 2027 rose 26% year on year to $1.47 billion, while subscription revenue increased 27% to $1.40 billion.
Ending annual recurring revenue reached $5.84 billion as of July 31, an increase of 25%. The company added a record $332.8 million of net-new ARR during the quarter, 51% more than a year earlier. Accounts using Falcon Flex, CrowdStrike’s consolidated licensing model, represented more than $2.29 billion of ending ARR, up 101%.
Falcon Flex allows customers to commit spending across multiple security modules rather than buying each product through a separate procurement cycle. CrowdStrike offers cloud-delivered capabilities covering endpoint security, identity protection, cloud workloads, security operations, threat intelligence, data protection, observability and generative-AI-assisted cybersecurity. The growth in Flex-linked ARR indicates increasing adoption of multiple modules within existing customer accounts.
The company recorded GAAP net income of $5.3 million, reversing a $70.2 million loss in the comparable quarter. Non-GAAP net income rose to $322.9 million from $237.4 million. Cash flow from operations reached a quarterly record of $530 million, while free cash flow was $377 million.
Founder and chief executive George Kurtz described the quarter as the strongest in the company’s history, citing new customer additions, retention and Falcon Flex adoption. Chief financial officer Burt Podbere said both gross and net dollar-based retention rates improved. CrowdStrike increased its expected full-year net-new ARR growth rate by 630 basis points to approximately 34% at the midpoint.
For fiscal 2027, the company now expects ending ARR of between $6.603 billion and $6.612 billion. Full-year revenue guidance stands at approximately $5.99 billion to $6.01 billion, while non-GAAP operating income is projected at $1.497 billion to $1.508 billion. For the third quarter, CrowdStrike forecasts revenue of $1.523 billion to $1.529 billion and ending ARR of approximately $6.184 billion to $6.188 billion.
The results arrive as Indian companies expand cloud, identity and endpoint-security programmes alongside deployments of generative and agentic AI. Those deployments introduce additional workloads, machine identities, data connections and automated actions requiring monitoring and policy enforcement. CrowdStrike’s disclosures show security spending consolidating around integrated platforms even as enterprises add AI-specific controls.
The company continues to list operational and legal exposure connected with the July 2024 Falcon content-configuration incident among its risk factors. That event caused Windows systems to crash across multiple industries worldwide, including aviation, banking and enterprise services, and remains relevant to customer requirements around testing, update governance and operational resilience.
