Shares of CrowdStrike (CRWD +20.50%) charged sharply higher on Thursday, gaining as much as 19.7% in early trading. As of 2:42 p.m. ET, the stock was still up 19.6%.

The catalyst that sent the cloud-based cybersecurity specialist higher was financial results that blew past expectations.

Image source: The Motley Fool.

Blockbuster results

CrowdStrike reported the results for its fiscal 2027 second quarter (ended July 31), and investors were clearly impressed. Revenue of $1.47 billion grew 26% year over year, as customers continued to expand their relationships with the platform. This forged record profits, with adjusted diluted earnings per share (EPS) of $0.31, up 34%.

For context, analysts' consensus estimates were calling for revenue of $1.44 billion and adjusted EPS of $0.29, so CrowdStrike easily surpassed both metrics.

It wasn't just the top- and bottom-line metrics that caught investors off guard. CrowdStrike added record net new annual recurring revenue (ARR) -- which measures subscription services growth -- of $333 million, up 51% year over year. This brought total ARR to $5.84 billion, up 25%. This suggests that CrowdStrike's growth spurt is far from over.

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NASDAQ: CRWD

CrowdStrike

Premium Feature

Moneyball Superscore

82/100

Today's Change

(20.50%) $38.78

Current Price

$227.96

Key Data Points

Market Cap

$193BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day's Range

$206.10 - $229.08

52wk Range

$85.68 - $229.08

Volume

23.4M

Avg Vol

10.7M

Gross Margin

74.89%

The company also revealed that subscription customers continued to adopt more modules at a higher rate, with 51%, 35%, and 26% adopting six or more, seven or more, and eight or more modules, respectively.

This also translated to record operating cash flow and free cash flow of $530 million and $377 million, respectively.

Investors had other reasons to celebrate. For the full 2027 fiscal year, management lifted its outlook, calling for revenue of $6 billion and EPS of $1.25 at the midpoint of its guidance, ahead of analysts' consensus estimates, which called for revenue of $5.94 billion and EPS of $1.23.

CrowdStrike stock isn't cheap, currently trading for 144 times next year's expected earnings and 45 times sales, but investors are rewarding the stock with a juicy premium, given its history of conservative guidance and robust results.