CrowdStrike is the leading AI-native cybersecurity platform and creator of the Falcon platform, and the question for the next twelve months is whether the company can convert the $1.39 billion Q1 FY2027 total revenue up 26% year over year, the $256 million record Q1 net new ARR up 32% year over year, the $591 million record cash flow from operations, the $468 million record free cash flow, the $5.51 billion ARR up 24% year over year, the $325.7 million Q1 FY2027 non-GAAP operating income, the $1.10 Q1 FY2027 non-GAAP diluted EPS, the raised FY2027 net new ARR growth guidance by 520 basis points at the midpoint, the announced four-for-one stock split, the 51%/35%/25% module adoption rates for six/seven/eight or more modules, the Project QuiltWorks coalition with OpenAI and Anthropic, the Charlotte AI AgentWorks Ecosystem with AWS, NVIDIA, and OpenAI, the Agentic MDR, the AI security infrastructure positioning, the Falcon platform adoption, the new logo lands, and the increased partner engagement into the kind of AI-Security-Infrastructure and Net-New-ARR-Acceleration operating leverage the company has been telegraphing. The Q1 FY2027 print was the cleanest test of that thesis, and the cleanest signal is that Founder and CEO George Kurtz said "in Q1, the worlds of cybersecurity and frontier AI collided this was the Mythos moment. CrowdStrike is AI security infrastructure, critical to successful AI adoption. Our record Q1 net new ARR, QuiltWorks coalition, and AIDR innovation are indicators of our own AI inflection point. We're seeing platform adoption from existing customers, new logo lands, and increased partner engagement, each giving me the conviction to significantly raise our FY27 net new ARR guidance." The strategic tension is the GAAP loss from operations against the record non-GAAP income from operations, and the forward question is whether the AI security infrastructure positioning can compound the net new ARR acceleration into the raised FY2027 guidance the company has been telegraphing.
The $256 million record Q1 net new ARR and the 32% year-over-year growth are the cleanest read on the operating momentum, and the AI security infrastructure positioning is the proof. The Q1 FY2027 net new ARR of $256 million grew 32% year over year. The Q1 FY2027 ARR of $5.51 billion grew 24% year over year.
The Q1 FY2027 total revenue of $1.39 billion grew 26% year over year, the Q1 FY2027 subscription revenue of $1.32 billion grew 26% year over year, the Q1 FY2027 GAAP subscription gross margin was 78% compared to 77% in Q1 FY2026, the Q1 FY2027 non-GAAP subscription gross margin was 81% compared to 80% in Q1 FY2026, the Q1 FY2027 GAAP loss from operations was $30.6 million compared to $118.7 million loss in Q1 FY2026, the Q1 FY2027 non-GAAP income from operations was $325.7 million compared to $201.1 million in Q1 FY2026, the Q1 FY2027 GAAP net income was $27.8 million compared to a $104.3 million loss in Q1 FY2026, the Q1 FY2027 GAAP net income per diluted share was $0.11 compared to a $0.42 loss in Q1 FY2026, the Q1 FY2027 non-GAAP net income was $283.4 million compared to $184.7 million in Q1 FY2026, the Q1 FY2027 non-GAAP net income per diluted share was $1.10 compared to $0.73 in Q1 FY2026, the Q1 FY2027 record net cash generated from operations of $590.9 million compared to $384.1 million in Q1 FY2026, the Q1 FY2027 free cash flow of $468.5 million compared to $279.4 million in Q1 FY2026, the Q1 FY2027 Cash and Cash Equivalents of $4.55 billion as of April 30, 2026, the 51% module adoption rate for six or more modules, the 35% module adoption rate for seven or more modules, the 25% module adoption rate for eight or more modules, the Project QuiltWorks coalition with OpenAI and Anthropic, the only cybersecurity company selected as a launch partner in both Anthropic's Project Glasswing and OpenAI's Trusted Access for Cyber (TAC) programs, the Charlotte AI AgentWorks Ecosystem with AWS, NVIDIA, and OpenAI, the Agentic MDR, the raised FY2027 net new ARR growth guidance by 520 basis points at the midpoint to 27.7%, the announced four-for-one stock split with record date June 25, 2026, the distribution date July 1, 2026, and the split-adjusted trading expected to begin July 2, 2026 anchor the print. The forward question is whether the AI security infrastructure positioning can compound the net new ARR acceleration into the raised FY2027 guidance.