🔹 Revenue: $1.10B (Est. $1.10B) 🟡; UP +20% YoY
🔹 Adj EPS: $0.73 (Est. $0.66) 🟢
🔸 Share repurchase program authorized up to $1B
FY26 Guidance
🔹 Revenue: $4.74B–$4.81B (Est. $4.79B) 🟡
🔹 Adj EPS: $3.44–$3.56 (Est. $3.45) 🟢
🔹 Adj Operating Income: $970.8M–$1.01B
🔹 Adj Net Income: $878.7M–$909.7M
🔹 Non-GAAP Tax Rate: 22.5%
🔹 Weighted Avg Diluted Shares: 256M
Q2 Guidance
🔹 Revenue: $1.1447B–$1.1516B
🔹 Adj EPS: $0.82–$0.84
🔹 Adj Operating Income: $226.9M–$233.1M
🔹 Adj Net Income: $209.1M–$213.8M
🔹 Weighted Avg Diluted Shares: 255M
Other Key Q1 Metrics:
🔹 Subscription Revenue: $1.05B; UP +20% YoY
🔹 Net New ARR: $193.8M
🔹 Ending ARR: $4.44B; UP +22% YoY
🔹 Cash Flow from Operations: $384.1M (Record High)
🔹 Free Cash Flow: $279.4M; DOWN from $322.5M YoY
🔹 Cash & Cash Equivalents: $4.61B
Q1 Non-GAAP Profitability Metrics:
🔹 Operating Income: $201.1M; DOWN from $213.3M YoY
🔹 Net Income: $184.7M; DOWN from $196.8M YoY
🔹 Subscription Gross Margin: 80% (vs. 81% YoY)
Strategic & Operational Highlights
🔸 Share repurchase program authorized up to $1B
🔸 Falcon Flex total deal value exceeded $3.2B; up 6x YoY
🔸 Sustained 97% gross retention, strong net retention
🔸 Achieved FedRAMP High Authorization
🔸 Delivered Falcon Privileged Access module and Charlotte AI Agentic Workflows
🔸 Launched new Exposure Management tools and AI risk solutions
🔸 Expanded strategic partnership with Microsoft and Google Cloud
🔸 Named Google Cloud 2025 Security Partner of the Year
🔸 Recognized in multiple 2025 industry radar reports as a Leader in XDR, ITDR, and Runtime Security
CEO George Kurtz Commentary
🔸 “Strong Q1 led by record large-deal momentum and adoption of Falcon as the platform of choice for the AI era. Our innovation and scale push us toward $10B in ARR.”