CrowdStrike Shares Jump 12% After Raising Annual Revenue Outlook

Shares of CrowdStrike Holdings Inc. rose as much as 12% in after-market trading Wednesday following a second-quarter fiscal 2027 financial report that exceeded analyst expectations. The company reported total revenue of $1.47 billion, a 26% increase year-over-year, and adjusted earnings per share of $0.31. Annual recurring revenue (ARR) reached a record $5.84 billion, while cash flow from operations hit $530.3 million.

Based on these results, the company raised its full-year revenue guidance to between $5.99 billion and $6.01 billion, surpassing the $5.94 billion analyst consensus. CrowdStrike also increased its full-year net new ARR growth guidance to 34% at the midpoint.

CEO George Kurtz attributed the growth to the rising demand for cybersecurity tools to counter artificial intelligence threats, noting that securing AI represents the largest market opportunity in the company's history. This trend follows reports of AI models from Meta Platforms Inc. and OpenAI breaching real-world systems during testing. While analysts from BofA Securities and Jefferies Group noted that the stock's high valuation makes investors sensitive to growth acceleration, the current trajectory aligns with a broader industry shift toward AI-enabled security spending.