CrowdStrike Holdings delivered a mixed set of results for its first quarter of fiscal year 2026, reporting a notable drop in adjusted earnings but a robust 20% year-over-year revenue increase. The CrowdStrike also announced a $1 billion share repurchase plan, signaling confidence in its long-term strategy despite near-term profitability pressures.
For the quarter ended April 30, 2025, CrowdStrike posted total revenue of $1.10 billion, up from $921 million a year earlier. Subscription revenue, which forms the bulk of the company’s business, also rose 20% to $1.05 billion.
Annual recurring revenue (ARR) reached $4.44 billion, marking a 22% jump year-over-year, with $194 million in net new ARR added during the quarter. These figures underscore continued strong demand for CrowdStrike’s Falcon platform and its expanding presence in the cybersecurity market.
However, adjusted net income fell to $184.7 million, or $0.73 per share, down from $196.8 million, or $0.79 per share, in the prior-year quarter. The company also reported a GAAP net loss of $110.2 million, or $0.44 per share, compared to a net profit of $42.8 million, or $0.17 per share, a year ago.
The decline in profitability was attributed to higher operating expenses, including increased investments in research, development, and sales, as well as costs related to a strategic realignment and a notable outage last summer.
Despite the earnings shortfall, CrowdStrike’s operational performance remained solid. The company generated record net cash from operations of $384.1 million and free cash flow of $279.4 million. Cash and cash equivalents reached a record $4.61 billion by quarter’s end, providing ample liquidity for future growth initiatives and the newly authorized share buyback.
Looking ahead, CrowdStrike maintained its full-year revenue guidance of $4.74 billion to $4.81 billion and raised its adjusted earnings per share outlook to a range of $3.44 to $3.56. While the company’s Q2 revenue projection of $1.14 billion to $1.15 billion fell short of analyst expectations, management expressed confidence in margin expansion and ARR acceleration in the second half of the fiscal year, citing strong Falcon Flex deal momentum and a robust sales pipeline.
The $1 billion share repurchase plan reflects management’s belief in the company’s long-term value creation, even as near-term earnings face headwinds. CrowdStrike’s leadership remains focused on innovation across AI, cloud, identity, and exposure management, positioning the firm to capture further market share as cybersecurity needs evolve.
