CrowdStrike Inc. reported its first-quarter fiscal 2026 results with annual recurring revenue (ARR) rising 22% year-over-year to $4.44 billion and net new ARR increasing by 5% quarter-over-quarter to $194 million. Quarterly revenue grew 20% to $1.1 billion, slightly missing estimates by 0.4%, while non-GAAP earnings per share (EPS) came in at $0.73, beating expectations by 10.6% but down 8% year-over-year. The company maintained its full-year 2026 revenue guidance at approximately $4.78 billion and raised adjusted EPS guidance to about $3.50, beating estimates by $0.05. Despite the strong ARR growth and EPS beat, CrowdStrike's shares declined by up to 8% in after-hours trading, pressured by a weaker-than-expected revenue forecast for the next quarter ($1.145 billion to $1.152 billion) and ongoing impacts from a July 2024 IT outage related to a Windows update. The outage has also drawn regulatory scrutiny, with the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) requesting information from CrowdStrike regarding the incident and the company's revenue recognition practices. The company stated it is cooperating with these inquiries and stands by its accounting. Additionally, Evercore downgraded CrowdStrike's stock citing valuation concerns and the lingering effects of the IT outage. Operationally, gross profit increased 17% to $814 million with a margin decline of 177 basis points, while net income fell 6% to $185 million. The stock market reaction reflects investor caution amid regulatory probes and guidance concerns despite solid underlying business growth.