Reported results
- Total revenue was $771.8 million, up 30% year-over-year; subscription revenue was $747.1 million, up 31% year-over-year; services revenue was $24.6 million, up 29% year-over-year.
- GAAP gross margin was 74% compared to 71% in the year-ago period; non-GAAP gross margin was 76% compared to 74% in the year-ago period.
- GAAP income from operations was $28.4 million compared to a loss of $65.3 million in the year-ago period; non-GAAP income from operations was $185.9 million compared to $86.8 million in the year-ago period.
- GAAP net income was $40.9 million, or $0.50 per share (diluted), based on 82.0 million diluted weighted-average shares; non-GAAP net income was $162.6 million, or $1.90 per share (fully diluted), based on 85.8 million fully diluted weighted-average shares.
- Non-GAAP operating margin was 24% compared to 15% in the year-ago period.
- Free cash flow was $137.6 million, nearly double the $69.9 million in the year-ago period; operating cash flow was $141.9 million compared to $72.1 million in the year-ago period.
Guidance
- Q3 fiscal 2027 revenue guidance: $756 million to $761 million (GAAP).
- Q3 fiscal 2027 GAAP income (loss) from operations guidance: $(14.5) million to $(10.5) million.
- Q3 fiscal 2027 non-GAAP income from operations guidance: $152.0 million to $156.0 million.
- Q3 fiscal 2027 GAAP net income per share guidance: $0.00 to $0.05.
- Q3 fiscal 2027 non-GAAP net income per share guidance: $1.57 to $1.61.
- Full year fiscal 2027 revenue guidance: $2.99 billion to $3.03 billion (GAAP).
- Full year fiscal 2027 GAAP income (loss) from operations guidance: $(28.0) million to $(8.0) million.
- Full year fiscal 2027 non-GAAP income from operations guidance: $616.3 million to $636.3 million.
- Full year fiscal 2027 GAAP net income per share guidance: $0.53 to $0.77.
- Full year fiscal 2027 non-GAAP net income per share guidance: $6.39 to $6.58.
Notes
Company raised full year fiscal 2027 guidance. Remaining Performance Obligations (RPO) was $1,519.2 million, up 91% year-over-year; Current Remaining Performance Obligations (cRPO) was $797.3 million, up 73% year-over-year. This is the company’s third consecutive quarter of GAAP EPS profitability. Atlas revenue grew approximately 29% year-over-year; EA & other revenue grew approximately 36% year-over-year in Q2 fiscal 2027.
Price and volatility reaction
The stock moved -13.5% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -40.3 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 434.21 | 2026-09-01 |
| Close after release | 375.4 | 2026-09-02 |
| Realised move | -13.5% | close to close |
| 30d ATM IV change | -40.3 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-01 (8-K, Item 2.02). Read the original filing on sec.gov.