CrowdStrike revenue reached $1.47 billion in the second quarter of fiscal 2027, a 26% increase from the same period last year. Management indicated that this growth rate has accelerated for five consecutive quarters, driven by increased customer spending on security measures as they adopt artificial intelligence.
The company's stock currently trades at 49.7 times its trailing twelve-month sales, a significant premium to the S&P 500's multiple of 3.1. Over the past three years, CrowdStrike revenue has grown at an average annual rate of 26.9%, compared with a 5.9% average for the S&P 500. Despite this revenue expansion, the company has not yet achieved profitability under GAAP standards. For the twelve months ended July 31, 2026, CrowdStrike reported a GAAP operating loss of approximately 2.5% of revenue, while the S&P 500 posted an operating margin of 18.5%. On an adjusted basis, however, management reported record operating income of $372 million for the second quarter of fiscal 2027, representing a 25% operating margin that is up 3.5 percentage points year over year.
Executives attribute sustained demand to the expanding attack surface created by AI, which introduces more models, agents, and identities for businesses to protect. CrowdStrike sells these defenses through its Falcon platform. Management noted that when customers migrate from standard subscriptions to Falcon Flex, the annual recurring revenue generated from those accounts increases by more than 40% on average. Based on this trajectory, CrowdStrike expects new annual recurring revenue to grow 34% in fiscal 2027 at the midpoint of its outlook.
Growth in annual recurring revenue remains strong but is guiding slower for the upcoming quarter. The company added $333 million in annual recurring revenue during the second quarter of fiscal 2027, a 51% increase from the prior year. For the third quarter of fiscal 2027, CrowdStrike expects to add between $343 million and $347 million. While this represents a larger dollar amount, it implies a year-over-year growth rate of only 29% to 31%. Investors will watch the third-quarter report to determine if the second-quarter surge represents a new baseline or a temporary spike.
The stock has experienced significant volatility in recent years. CrowdShare fell 42% in July and August 2024, outperforming the S&P 500's decline of 7.8% during that period only in magnitude of loss relative to its own high, though it underperformed the index in absolute terms during other shocks. During the 2025 tariff shock, CrowdStrike dropped 31% compared to a 19% decline for the index. In the inflation shock of 2022, the stock fell 31% while the index dropped 24%. An exception occurred in late 2023 during a yield shock, where CrowdStrike lost 4.6% while the S&P 500 fell 9.5%. Given that the stock returned 107% over the past twelve months, a position that has doubled in value likely constitutes a larger portion of portfolios than it did previously.