CrowdStrike Holdings, Inc. (CRWD) - Q1 2027 (Ended April 30, 2026) Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended April 30, 2026 (Q1 of Fiscal Year 2027). CrowdStrike is a global cybersecurity leader providing an AI-native, cloud-delivered platform (Falcon) for endpoint, cloud workload, identity, and data protection. The company operates as a single reportable segment. As of May 28, 2026, there were 254,564,820 shares of Class A common stock outstanding.
Key Financial Metrics
| Metric | Q1 2027 (Apr 30, 2026) | Q1 2026 (Apr 30, 2025) |
|---|---|---|
| Total Revenue | $1,385.6 million | $1,103.4 million |
| Gross Profit | $1,043.4 million | $815.6 million |
| Gross Margin | 75.3% | 74.0% |
| Operating Loss | ($30.6) million | ($118.7) million |
| Net Income (Loss) | $46.0 million | ($105.1) million |
| Net Income Attributable to CrowdStrike | $27.8 million | ($104.3) million |
| Diluted EPS | $0.11 | ($0.42) |
| Cash and Cash Equivalents | $4,552.8 million | $5,230.1 million (Jan 31, 2026) |
| Long-Term Debt | $745.8 million | $745.5 million (Jan 31, 2026) |
| Operating Cash Flow | $590.9 million | $384.1 million |
| Annual Recurring Revenue (ARR) | $5,508.6 million | $4,435.6 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 26% year-over-year, driven by a 26% increase in subscription revenue and a 23% increase in professional services revenue.
- Profitability: The company returned to profitability, reporting net income of $46.0 million compared to a net loss of $105.1 million in the prior year. This was aided by a tax benefit of $6.9 million and a significant gain on strategic investments.
- Acquisitions: Significant investing activity ($994.1 million outflow) was driven by the acquisitions of SGNL.AI, Inc. ($627.9 million cash) and Seraphic Algorithms Ltd. ($327.5 million cash), alongside capital expenditures.
- Share Repurchases: The company repurchased 480,000 shares for $175.6 million under its expanded $1.5 billion authorization program.
- Accounting Change: The company increased the estimated period of benefit for sales commissions from four to five years, reducing sales commission expense by $27.9 million in the quarter.
Guidance, Outlook, Risks, and Unusual Items
- July 19 Incident: The filing details ongoing legal proceedings and costs related to the July 19, 2024, sensor update incident. While several class actions were dismissed, the company expects to continue incurring significant legal and professional expenses. The incident has led to elongated sales cycles and customer commitment packages that may impact future revenue recognition and retention metrics.
- Strategic Plan: A strategic plan announced in May 2025 to reduce approximately 500 roles (5% of workforce) was substantially completed as of April 30, 2026.
- Stock Split: On June 3, 2026, the board approved a 4-for-1 forward stock split, effective July 1, 2026.
- Risks: Key risks include the ongoing impact of the July 19 Incident on reputation and sales, intense competition, reliance on third-party data centers (AWS), and the complexity of integrating recent acquisitions.
- Unusual Items: Net income included a $36.4 million realized gain on the sale of strategic investments and a $15.5 million gain from the remeasurement of a previously held equity interest in Seraphic.
Investor Verification Checklist
- Verify the sustainability of the return to profitability after excluding one-time gains from strategic investments and tax benefits related to acquisitions.
- Monitor the trajectory of the "July 19 Incident" legal costs and their impact on future operating expenses and cash flow.
- Assess the integration progress and revenue contribution of the SGNL.AI and Seraphic acquisitions.
- Review the impact of the 4-for-1 stock split on liquidity and market perception.
- Confirm the effectiveness of the "Strategic Plan" cost reductions in offsetting rising R&D and sales expenses.