The quarter cleared the company’s own bar by a meaningful amount. Revenue was $554.5 million versus prior Q1 guidance of $547–$551 million, while non-GAAP EPS of $0.48 exceeded the guided $0.44–$0.45 range. Non-GAAP operating income of $161.6 million also came in above the $150–$154 million guide, so this was a broad operating beat rather than an EPS-only result. (Financial Highlights; Fiscal 2027 Guidance)
| Metric | Q1 fiscal 2027 actual | Prior-year quarter | Prior expectation / outlook |
|---|---|---|---|
| Total revenue | $554.5M, +16% | $477.3M | $547–$551M Q1 guide (Financial Highlights; Fiscal 2027 Guidance) |
| ARR | $2.136B, +17% | $1.822B | Full-year ARR outlook now $2.359–$2.379B (Financial Highlights; Fiscal 2027 Guidance) |
| Non-GAAP operating income | $161.6M | $143.1M | $150–$154M Q1 guide (Non-GAAP reconciliation; Fiscal 2027 Guidance) |
| Non-GAAP operating margin | 29% | 30% | 27.5%–28.0% Q1 guide (Non-GAAP reconciliation; Fiscal 2027 Guidance) |
| Non-GAAP diluted EPS | $0.48 | $0.42 | $0.44–$0.45 Q1 guide; published consensus around $0.45 (Non-GAAP reconciliation; Fiscal 2027 Guidance) |
| Adjusted free cash flow | $309.2M, 56% margin | $262.2M, 55% margin | Full-year $610–$615M maintained near prior level (Adjusted Free Cash Flow; Fiscal 2027 Guidance) |
The full-year outlook is operationally intact, despite lower reported dollar targets. Management cut the fiscal-year ARR midpoint by $23 million and revenue midpoint by $13 million, but attributed the change to a more unfavorable foreign-exchange assumption. Constant-currency ARR growth stayed at 15.5%–16.5%, and constant-currency revenue growth edged up by 25 basis points at the midpoint. That makes the headline reduction largely translation-driven—not a cut to the underlying demand outlook. (Fiscal 2027 Guidance; Foreign Exchange discussion)
Profitability remains stronger than initially guided, but it is not accelerating. Q1 non-GAAP margin reached 29%, above the original 27.5%–28.0% outlook, and full-year non-GAAP operating-income guidance is unchanged at $682–$690 million. However, the full-year EPS increase to $1.97–$1.99 comes principally from a lower expected diluted share count after substantial repurchases, rather than higher operating-income guidance. The company repurchased $275.5 million of stock in the quarter, reducing shares outstanding to 290.3 million from 294.7 million at March 31. (Fiscal 2027 Guidance; Cash Flow Statement; Balance Sheet)
The remaining tension is modestly slower reported growth and a planned CFO transition. Q2 revenue guidance of $565–$570 million implies 14%–15% reported growth, broadly consistent with the full-year outlook and near published expectations, rather than a fresh acceleration signal. Separately, CFO Jim Benson plans to retire by March 31, 2027; the long transition window limits the immediate disruption, but the successor search becomes a new execution item to watch. (Q2 Fiscal 2027 Guidance; Item 5.02 / CFO transition announcement)
Read the original 8-K on SEC EDGAR ↗