CrowdStrike (CRWD) Q1 2027 Earnings Results

CrowdStrike narrowly beat Wall Street’s fiscal first-quarter estimates after the bell on Wednesday, but shares slid 10% following the report.

Here’s how the company performed against LSEG estimates:

• Earnings per share: $1.10 adjusted versus an expected $1.07
• Revenue: $1.39 billion compared to an estimate of $1.36 billion

The cybersecurity stalwart announced that revenue saw a 26% increase year-over-year. Net income for the quarter was approximately $27.8 million, or 11 cents per share, a significant improvement from a net loss of $104.3 million, or a loss of 42 cents per share, in the prior year.

Adding to the news, CrowdStrike also revealed a four-for-one stock split, which is set to take effect in July. The company’s shares closed at $747.61 on Wednesday.

CEO George Kurtz attributed the company’s performance to an “AI inflection point,” driven by increasing customer adoption of its platform. He stated in a press release, “In Q1, the worlds of cybersecurity and frontier AI collided: this was the Mythos moment. CrowdStrike is AI security infrastructure, critical to successful AI adoption.”

CrowdStrike is positioned to capitalize on the surging demand for advanced cybersecurity tools, especially as sophisticated AI models, like Anthropic’s Mythos, present new avenues for accelerating cyberattacks. The sector has demonstrated resilience, largely shaking off earlier AI-induced disruption concerns that impacted other software companies. CrowdStrike’s stock has seen a notable rise of approximately 60% year-to-date.

During Wednesday’s earnings call, Kurtz highlighted AI detection and response (AIDR) as a new and significant growth vector for CrowdStrike. He indicated that the company’s pipeline for the second quarter had already surpassed $50 million, likening CrowdStrike’s role to providing the essential “picks and shovels” for what he described as “the world’s largest technology gold rush of all time.”

CrowdStrike is actively involved as an early adopter of Anthropic’s Mythos through its Project Glasswing initiative. This program grants select companies early access to the model, amidst ongoing concerns about its potential misuse by malicious actors if broadly released.

In response to the evolving threat landscape posed by agentic AI, CrowdStrike, along with its competitors, has been strategically pursuing acquisitions to bolster its AI capabilities and assist customers in re-evaluating their cybersecurity strategies. Notable recent moves include a $740 million acquisition of identity security firm SGNL and the acquisition of AI security startup Pangea.

Looking ahead, CrowdStrike projects revenue for the current quarter to be around $1.44 billion, aligning closely with LSEG’s consensus estimate of $1.43 billion. Furthermore, the company has raised its fiscal 2027 forecast for net new annual recurring revenue growth, anticipating a range between $6.53 billion and $6.56 billion.