CrowdStrike Sees Strong AI Security Demand as Falcon Flex Deals Surge

CrowdStrike is seeing rapid growth in demand for AI security as organizations increasingly adopt AI and agentic technologies, CEO and co-founder George Kurtz said during the company’s fiscal Q2 2027 earnings call.

The company also reported strong growth in its Falcon Flex subscription model, with major customers and partners increasingly using the platform to deploy CrowdStrike’s expanding security portfolio.

Falcon Positioned for the AI Era

Kurtz said CrowdStrike believes its Falcon platform is well positioned to become a major security layer for organizations adopting AI and agentic tools.

The company has seen particularly strong demand for Falcon AIDR, its AI Detection and Response offering.

According to Kurtz, Falcon AIDR's annual recurring revenue (ARR) growth nearly tripled sequentially by the end of July compared with the previous quarter.

CrowdStrike is also seeing momentum across:

  • Falcon Next-Gen SIEM
  • Falcon Next-Gen Identity Security
  • Falcon Exposure Management
  • Falcon endpoint security
  • Falcon AIDR

Kurtz described the broader Falcon platform as an important security infrastructure layer for enterprise AI adoption.

Falcon Flex ARR Surpasses $2.29 Billion

CrowdStrike's Falcon Flex subscription model is also expanding rapidly.

Falcon Flex allows customers and partners to package and deploy multiple CrowdStrike security products through a more flexible subscription model.

Ending ARR from Falcon Flex customers reached $2.29 billion, representing 101% year-over-year growth.

CrowdStrike said its 10 largest deals during the quarter all included Falcon Flex.

The company also added more than 935 new Flex customers during the quarter.

Kurtz said CrowdStrike has accelerated its Flex-first go-to-market strategy as businesses look for greater flexibility while adopting security technologies for the AI era.

Project QuiltWorks Builds AI Security Partner Ecosystem

CrowdStrike is also expanding its partner-focused Project QuiltWorks initiative.

The program focuses on helping organizations and security partners prepare for vulnerabilities discovered or accelerated by frontier AI systems.

According to Kurtz, QuiltWorks partners are currently collaborating with CrowdStrike on approximately $400 million in total contract-value pipeline.

The company has also expanded the initiative to a broader range of managed service providers and other partners.

Partner Business Continues to Grow

CrowdStrike's global system integrator business grew nearly 50% year over year, driven largely by demand for Next-Gen SIEM and vulnerability management.

The company is also seeing strong momentum in the SMB market through managed security service provider (MSSP) partnerships.

CrowdStrike Beats Q2 Expectations

For fiscal Q2 2027, CrowdStrike reported:

  • Revenue: $1.47 billion
  • Year-over-year revenue growth: 26%
  • Revenue beat: $30 million above Wall Street expectations
  • Non-GAAP EPS: $0.31
  • EPS beat: $0.02
  • Falcon Flex ending ARR: $2.29 billion
  • Falcon Flex ARR growth: 101% year over year
  • New Falcon Flex customers: 935+

The company also raised its full-year fiscal 2027 guidance.