CrowdStrike misses revenue target as net new ARR slows to $256M
The cybersecurity giant fell short of Wall Street's revenue expectations while net new ARR failed to meet the high analyst bar.
By RuntimeWire Staff · Published
Primary source: Crowdstrike
Crowdstrike (CRWD) — Fiscal Second quarter 2027
Revenue: $1.39B
Ending ARR: $5.51B
Net New ARR: $256M
Non-GAAP Subscription Gross Profit / Margin: $1.1B / 81%
Non-GAAP Operating Income / Margin: $326M / 24%
Free Cash Flow / Margin: $468M / 34%
CrowdStrike fell short of Wall Street expectations for the second quarter of fiscal 2027, posting $1.39 billion in revenue against a consensus estimate of approximately $1.44 billion. While the company maintained its high-margin profile, the critical metric that analysts were watching most closely—net new ARR—landed at just $256M, failing to reach the whisper-level targets that suggested the stock needed to see at least $292 million to satisfy elevated market expectations.
The results reflect a cooling pace compared to the previous quarter, where net new ARR stood at $255.8 million. Despite the miss on top-line growth, the Falcon platform continues to demonstrate significant scale, ending the period with $5.51B in annual recurring revenue (ARR). Management remains focused on the monetization of its AI initiatives, including Charlotte AI and AgentWorks, but the immediate pressure remains on converting these platform narratives into faster-velocity revenue growth.
CrowdStrike's efficiency metrics remained robust despite the revenue headwinds:
- Non-GAAP Subscription Gross Profit / Margin: $1.1B / 81%
- Non-GAAP Operating Income / Margin: $326M / 24%
- Free Cash Flow / Margin: $468M / 34%
Investors will now turn their attention toward the upcoming Fal.Con conference on August 31st. The primary focus will be on whether the company can accelerate its product roadmap and AI-adoption to defend its full-year ARR guidance of $6.532 billion to $6.556 billion.