CrowdStrike reported a solid QQ1 FY2026 to kick off the year, underscoring the strength of its AI-native Falcon platform and the rapid adoption of FalconFlex. Total revenue rose 19.8% year over year to $1.103 billion, with subscription revenue up 20% YoY to $1.05 billion and a subscription gross margin of 80%. Management emphasized the acceleration of ARR growth driven by FalconFlex, reflex deals, and deeper platform adoption across cloud, identity, exposure management, and next-gen SIEM. Ending ARR reached $4.44 billion, with net new ARR of $194 million, reflecting a continued strength in customer retention (gross retention 97%) and expansion. Free cash flow remained robust at $279.4 million (25% of revenue), and CrowdStrike announced a share repurchase authorization of up to $1 billion, underscoring confidence in its long-term ARR target of $10 billion.
Management guidance for Q2 calls for revenue of approximately $1.145–$1.152 billion (about 19% YoY growth) and non-GAAP earnings per share of $0.82–$0.84 on about 255 million diluted shares. For FY2026, the company expects revenue of $4.7435–$4.8055 billion (20%–22% growth) and non-GAAP net income of $878.7–$909.7 million (~$3.44–$3.56 per share). A temporary ARR-to-revenue mismatch is anticipated due to CCP-related programs and partner amortization, with a run-rate impact of roughly $10–$15 million per quarter slated to subside in Q4. CrowdStrike also signaled a strategic realignment to invest in cloud, identity, exposure management, AI, and next-gen SIEM, with a target to improve FY2027 free cash flow margin to above 30%.