It has been about a month since the last earnings report for CrowdStrike Holdings (CRWD). Shares have added about 7.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is CrowdStrike due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for CrowdStrike before we dive into how investors and analysts have reacted as of late.
CrowdStrike Q1 Earnings Surpass Estimates on ARR Strength, AI Demand
CrowdStrike reported non-GAAP earnings per share of $1.10 for the first quarter of fiscal 2027, which surpassed the Zacks Consensus Estimate by 2.8%. The bottom line increased 50.7% on a year-over-year basis.
The company’s first-quarter revenues of $1,385.63 million surpassed the consensus estimate by 1.7%. The top line increased 25.6% year over year.
CRWD’s Top-Line Details
Subscription revenues jumped 25.7% year over year to $1,320.85 million. Professional services revenues increased 23% year over year to $64.78 million.
As of April 30, 2026, annual recurring revenues (ARR) were $5.51 billion, up 24% year over year. The company added $255.8 million to its net new ARR in the reported quarter.
As of April 30, 2026, CrowdStrike’s subscription customers, who adopted six or more cloud modules, represented 51% of total subscription customers. Customers that adopted seven or more cloud modules accounted for 35% of the total, while those with eight or more cloud modules represented 25%.
CrowdStrike’s Operating Details
CrowdStrike’s gross profit increased 27.1% to $1,089.8 million in the fiscal first quarter from $857.1 million in the year-ago quarter. The non-GAAP gross margin increased 100 basis points to 78.7%.
The non-GAAP subscription gross profit rose 27.1% year over year to $1.07 billion, while the gross margin expanded 100 basis points (bps) year over year to 81%. The non-GAAP professional gross profit increased 29.5% to $21.2 million, while the gross margin expanded 160 bps to 32.7% on a year-over-year basis.
Non-GAAP sales and marketing expenses jumped 12.1% year over year to $413.1 million. Non-GAAP research and development expenses climbed 25.3% year over year to $273.4 million. Non-GAAP general and administrative expenses increased 12% year over year to $77.7 million.
Non-GAAP income from operations was $325.7 million, up from $201.1 million in the year-ago quarter. The non-GAAP operating margin expanded 530 basis points year over year to 24%.
CrowdStrike’s Balance Sheet & Cash Flow
As of April 30, 2026, cash and cash equivalents were $4.55 billion.
In the fiscal first quarter, CrowdStrike generated operating and free cash flows of $590.9 million and $468.5 million, respectively.
CrowdStrike Offers Q2 and FY2027 Guidance
The company updates its fiscal second-quarter 2027 guidance, including total revenues of $1.43-$1.44 billion and ARR of $5.792-$5.794 billion.
Non-GAAP earnings are expected in the range of $1.16 to $1.17 per share.
The company also raised its fiscal 2027 net new ARR growth guidance by 520 basis points at the midpoint and updated its full-year guidance to include total revenues of $5.91-$5.95 billion and ARR of $6.53-$6.55 billion.
For fiscal 2027, Non-GAAP earnings are expected in the range of $4.88 to $4.96 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted -11.8% due to these changes.
VGM Scores
At this time, CrowdStrike has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, CrowdStrike has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
CrowdStrike belongs to the Zacks Security industry. Another stock from the same industry, Palo Alto Networks (PANW), has gained 24.6% over the past month. More than a month has passed since the company reported results for the quarter ended April 2026.
Palo Alto reported revenues of $3 billion in the last reported quarter, representing a year-over-year change of +31.1%. EPS of $0.85 for the same period compares with $0.80 a year ago.
Palo Alto is expected to post earnings of $0.97 per share for the current quarter, representing a year-over-year change of +2.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -6.5%.
Palo Alto has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
