CrowdStrike Q1 Earnings: Revenue, EPS Miss Estimates, Cybersecurity Company Raises FY26 Guidance, Approves $1B Buyback

CrowdStrike Holdings Inc CRWD reported first-quarter financial results after the market close on Tuesday. Here’s a rundown of the report.

Q1 Earnings: CrowdStrike reported first-quarter revenue of $1.10 billion, missing analyst estimates of $1.16 billion, according to Benzinga Pro. The cybersecurity company reported adjusted earnings of 73 cents per share, missing analyst estimates of 81 cents per share.

Total revenue was up 20% year-over-year in the first quarter, and subscription revenue also grew 20% to $1.05 billion. Annual recurring revenue increased 22% year-over-year to $4.44 billion after the company added $193.8 million of net new ARR in the quarter.

Net cash generated from operations was $384.1 million and free cash flow came in at $279.4 million. The company ended the quarter with $4.61 billion in cash, equivalents and short-term investments.

“We started the fiscal year with record Q1 large deal and MSSP momentum alongside sustained 97% gross retention and consistently strong net retention as the market consolidates on Falcon as its cybersecurity platform of choice for the agentic AI era,” said George Kurtz, co-founder, president and CEO of CrowdStrike.

“The scale of Falcon Flex demand and the pace of innovation across AI, next-gen SIEM, cloud, identity, and exposure management advances us towards $10 billion in ending ARR.”

CrowdStrike’s board approved a share repurchase program of up to $1 billion.

Outlook: CrowdStrike expects second-quarter revenue to be between $1.145 billion and $1.152 billion versus estimates of $1.23 billion. The company anticipates second-quarter adjusted earnings of 82 cents to 84 cents per share versus estimates of 92 cents per share.

CrowdStrike also raised its full-year guidance. The company now expects full-year revenue of $4.74 billion to $4.81 billion versus estimates of $4.77 billion. The company also raised its full-year adjusted earnings guidance from a range of $3.33 to $3.45 per share to a new range of $3.44 to $3.56 per share versus estimates of $3.43 per share.

CrowdStrike’s management team will further discuss the company’s quarterly results on a conference call with investors and analysts at 5 p.m. ET.

CRWD Price Action: CrowdStrike shares were down 7.31% after-hours, trading at $453.02 at the time of publication on Tuesday, according to Benzinga Pro.

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