CrowdStrike Q1 revenue growth disappoints lofty expectations

CrowdStrike Holdings

03/06/2026 21:18

Overview
Cybersecurity platform's fiscal Q1 revenue grew 26% yr/yr, beating analyst expectations; investors unimpressed
Adjusted EPS for fiscal Q1 rose to $1.10, up from $0.73 yr/yr
Company announced four-for-one stock split and raised full-year net new ARR guidance

Outlook
CrowdStrike raises FY27 net new ARR growth guidance to 27.7% at the midpoint
Company sees Q2 FY27 revenue between $1.44 bln and $1.44 bln
CrowdStrike expects FY27 revenue between $5.91 bln and $5.96 bln

Result Drivers
NET NEW ARR GROWTH - Record Q1 net new annual recurring revenue (ARR) of $256 mln, up 32% yr/yr, driven by platform adoption from existing customers, new customer wins, and increased partner engagement, per CEO George Kurtz
AI AND PLATFORM INNOVATION - Growth attributed to AI technology wave, new Falcon platform capabilities, and launches such as Charlotte AI AgentWorks Ecosystem and Agentic MDR, according to management
PARTNER AND PUBLIC SECTOR EXPANSION - Expanded partnerships with OpenAI, Anthropic, AWS, IBM, Intel, and Google, and new public sector offerings including GovCloud and FedRAMP High-authorized capabilities contributed to Q1 results

Company press release: ID:nBw40RXZga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.39 bln
$1.36 bln (42 Analysts)
Q1 Adjusted EPS
 
$1.10
 
Q1 Net Income Attributable to CrowdStrike
 
$27.77 mln
 
Q1 Free Cash Flow
 
$468 mln
 
Q1 Gross Profit
 
$1.04 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 43 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for CrowdStrike Holdings Inc is $515.00, about 33% below its June 2 closing price of $768.95
The stock recently traded at 146 times the next 12-month earnings vs. a P/E of 77 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)