"Falcon Flex has been a real home run for us, Saket. And... a real game changer for adoption."
— George Kurtz
03Detailed Report
CRWD
Company CRWD
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
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%.
Key Performance Indicators
Revenue
Increasing
1.10B
QoQ: 4.24% | YoY: 19.80%
Gross Profit
Increasing
814.29M
73.80% margin
QoQ: 3.79% | YoY: 16.99%
Operating Income
Decreasing
-124.66M
QoQ: -46.14% | YoY: -1 897.23%
Net Income
Decreasing
-110.21M
QoQ: -19.42% | YoY: -357.37%
EPS
Decreasing
-0.44
QoQ: -17.74% | YoY: -344.44%
Revenue Trend
Margin Analysis
Financial Highlights
Overview of QQ1 FY2026 metrics and recent trends:
- Revenue: $1.10334B; YoY growth 19.8%; QoQ growth 4.24%.
- Gross Profit: $814.291M; Gross margin (gross profit / revenue) ≈ 73.80%; Subscription gross margin ≈ 80% of revenue.
- Operating income: -$124.656M; Operating margin ≈ -11.30% (as a percentage of revenue).
- Net income: -$110.207M; Net income margin ≈ -9.99%.
- Earnings per share (diluted): -$0.44; Weighted avg shares: 248.432M.
- ARR and growth: Ending ARR $4.44B (YoY +22%); Net new ARR $194M in Q1.
- ARR mix and retention: 97% gross retention; 60% of Q1 deal value sourced from partners; 48% (6+ modules), 32% (7–8 modules), 22% (8+ modules) in subscription customers.
- FalconFlex momentum: Total FalconFlex account value $3.2B; 820 accounts; average flex customer deal size >$1M in ending ARR; average flex subscription length ≈ 31 months; >75% of flex contracts deployed; reflex activity driving broader platform adoption (9-figure reflex in some cases).
- Cash flow: Operating cash flow $384.107M; Free cash flow $280.919M (25% of revenue); Cash and cash equivalents end period $4.615B; Net Change in Cash +$290.957M.
- Balance sheet health: Total assets $8.72B; Total liabilities $5.229B; Total stockholders’ equity $3.450B; Net debt position strongly negative (net debt ≈ -$3.828B) due to large cash balance and limited debt.
- Guidance highlights: Q2 revenue guidance $1.145–$1.152B; Non-GAAP operating income $226.9–$233.1M; Non-GAAP net income $209.1–$213.8M; Diluted non-GAAP EPS $0.82–$0.84; Full-year revenue guidance $4.7435–$4.8055B; FY2026 non-GAAP net income $878.7–$909.7M; FY2027 free cash flow margin >30% anticipated via strategic realignment and platform-scale efficiencies.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.10B
19.80%
4.24%
Gross Profit
814.29M
16.99%
3.79%
Operating Income
-124.66M
-1 897.23%
-46.14%
Net Income
-110.21M
-357.37%
-19.42%
EPS
-0.44
-344.44%
-17.74%
Key Financial Ratios
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