CrowdStrike's Quarter Shows AI is a Cybersecurity Tailwind, Not a Threat
Earlier this year, the bears thought advances in AI models could disintermediate the cybersecurity sector. So far, they've been proven wrong.
TL;DR
- CrowdStrike's Q2 fiscal 2027 revenue reached $1.47 billion, a 26% year-over-year increase, surpassing estimates.
- Adjusted EPS was $0.31, exceeding the $0.29 estimate.
- Net new annual recurring revenue (NNARR) was $333 million, a 51% year-over-year increase, significantly beating analyst expectations.
- AI is described as a major accelerant for CrowdStrike's business, with clients increasingly seeking security for AI adoption.
- Key growth areas include Cloud Security (up over 29% ARR), LogScale (up 60% ARR), and Identity (up 33% ARR).
- The company secured significant deals with an unnamed frontier lab and a European car maker.
- CrowdStrike raised its full fiscal year 2027 revenue guidance to $5.991-$6.011 billion and adjusted EPS to $1.25-$1.26.
- The company's annual conference, Fal.Con, is sold out and expected to generate significant pipeline.
- A price target of $230 was raised from $220.