CrowdStrike Q1 revenue rises 25.6% to $1.39 billion, beating estimates

SentinelOne has rolled out general availability of its Wayfinder Threat Hunting for Cloud service, extending coverage to AWS, Azure, and Google Cloud and tying the launch directly to its AI-led Singularity Platform. The stock last closed at US$25.80, with a 1-month share price return of 29.78% and a year-to-date share price return of 76.23%. The most followed narrative on SentinelOne pegs fair value at $24.25, leaving the stock modestly above that estimate and 6% overvalued, while the SWS DCF model points the other way, putting shares roughly 6.2% below an estimated future cash flow value of $27.49. Analysts behind the popular narrative use an 8.57% discount rate and assume revenue growth in the high teens with margins eventually moving toward US software averages, even as SentinelOne still reports a loss of $340.1 million on $1.10b of revenue. The company's new Flex licensing model is accelerating multi-product adoption, and expansion beyond endpoint security into cloud security, identity, and data protection, including the Prompt Security acquisition for GenAI risk, is expected to lift average contract value and diversify revenue streams.

CrowdStrike expanded its Google Cloud relationship on September 1, announcing Falcon capabilities designed to protect enterprise AI applications against prompt injection, sensitive-data leakage, and malicious AI activity through Google's Agent Gateway, alongside broader connections between Falcon and Gemini Enterprise. The move follows a fiscal second quarter in which revenue rose 26% year-over-year to approximately $1.47 billion, annual recurring revenue reached approximately $5.84 billion, up 25%, and net new ARR added during the quarter totaled $332.8 million. ARR from customers using Falcon Flex exceeded $2.29 billion, up 101% from a year earlier, while operating cash flow increased to $530.3 million from $332.8 million and free cash flow rose to $377.4 million from $283.6 million. Management raised its full-year fiscal 2027 net new ARR growth outlook to 34% at the midpoint. Jim Cramer highlighted CrowdStrike on Mad Money on October 1, noting the stock rallied 39% and that the Charitable Trust owns it, though the company still trades at roughly 210x forward earnings versus 96x for Palo Alto Networks and reported a $33.2 million GAAP operating loss against $371.6 million in non-GAAP operating income. Legal exposure from the July 2024 outage remains unresolved, with discovery ongoing in Delta's lawsuit and the company disclosing requests for information from the Justice Department and SEC concerning revenue recognition, ARR reporting for certain customers, and the outage.

The First Trust Cybersecurity ETF (CIBR) reached an all-time high on Monday as the tech-heavy Nasdaq Composite (^IXIC) notched a fresh record, with the fund's main holdings CrowdStrike (CRWD), Palo Alto Networks (PANW), and Fortinet (FTNT) all sitting near all-time highs after surging 132%, 131% and 97%, respectively. Rubrix (RBRK), F5 (FFIV), and Cloudflare (NET) also sit near record highs after a strong rally this year. Alarm bells from leadership at Anthropic and OpenAI prompted a rally in cybersecurity stocks last month, and the surge in AI agent usage and the popularity of Meta's (META) Muse have also highlighted the need for the industry. "Agents going rogue is the biggest risk today," Jay Chaudhury, CEO of Zscaler, told Yahoo Finance's Brian Sozzi on Monday, adding that a hijacked or rogue agent on a corporate network is far more dangerous because it works at machine speed. Morgan Stanley analysts, who have Overweight recommendations on Palo Alto Networks, CrowdStrike, and Okta (OKTA), expect corporate spending on cybersecurity software to grow by 23% annually through 2028, potentially accelerating to 33% annually if major cyberattacks spur new government mandates.

CrowdStrike Holdings has listed its Falcon cybersecurity platform in the OpenAI Marketplace for enterprise buyers. The arrangement allows eligible OpenAI enterprise customers to use a portion of their existing OpenAI commitments to procure Falcon, tying the platform to the same budgets used for frontier models and agents. The partnership links CrowdStrike's AI-driven security tools with OpenAI agentic technologies and associated procurement workflows for joint clients, with a launch set for September 2026. The move follows recent integrations from Tamnoon and Salt Security that plug Falcon into cloud remediation, API security and AI agent monitoring. The clearest test of whether the listing moves the needle will be whether management breaks out Marketplace-driven wins, such as the share of new Falcon commitments sourced from OpenAI or growth in joint enterprise customers.

TrendAI, the AI security business unit of Trend Micro Incorporated, announced it has expanded support for Claude's Compliance API in TrendAI Vision One to cover Claude Code and Cowork session transcripts from Claude Enterprise. The move builds on the integration TrendAI announced with Anthropic in June 2026 and adds visibility into how engineering and knowledge-work teams use AI agents day to day. Claude's Compliance API returns session records for Claude Code and Cowork, including prompts, responses and tool calls, each tied to a verified user, and TrendAI now brings those records into TrendAI Vision One so security teams can investigate AI activity in context, correlate it with endpoint, identity, cloud and network signals, and build custom detections. Rachel Jin, Chief Platform and Business Officer and Head of TrendAI, said coding and knowledge-work agents are now doing real work inside the business and security teams should be able to see and investigate that work the same way they do everything else. TrendAI Vision One also continues to ingest activity logs from Claude Enterprise, covering user logins, admin actions and configuration changes, and from Claude Platform, covering admin, system and resource events. The Claude Compliance API integration in TrendAI Vision One is available now for TrendAI Vision One customers using Claude Enterprise.