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CrowdStrike Stock Soars 10% While Okta Rockets 20%. AI Adoption is Boosting Security Demand

Dow Jones
8 hours ago

CrowdStrike and Okta stocks surged after the close after the cybersecurity companies beat expectations and raised its outlook.

CrowdStrike reported second-quarter adjusted earnings of 31 cents a share and revenue of $1.47 billion. Analysts had expected CrowdStrike to report earnings of 29 cents a share and revenue of $1.44 billion.

Shares rose nearly 10% in after-hours trading.

CEO and founder George Kurtz called it the best quarter in CrowdStrike's history, and the company again raised its outlook for growth in annual recurring revenue. "Every enterprise will run on AI, and securing it is the largest market opportunity in our history."

AI adoption is driving structural security demand, and Crowdstrike and rivals such as Okta, Palo Alto Networks and Zscaler are seeing the benefits. CrowdStrike earlier guided full-year 2027 revenue to be in a range of $5.915 billion to $5.959 billion, with adjusted earnings in a range of $1.22 to $1.24 a share.

It now sees total revenue for 2027 to be in a range of $5.991 billion to $6.011 billion, and adjusted earnings of $1.25 to $1.26 a share.

Net new second quarter annual recurring revenue reached $332.8 million, and total ARR rose 25% from a year ago, to $5.84 billion.

That came after a record first quarter, when net new annual recurring revenue reached $255.8 million and ending ARR reached $5.51 billion.

Okta shares jumped nearly 20% in late Thursday trading after it reported better-than-expected third-quarter revenue of $805 million, up 11% from a year ago, and adjusted earnings of $1.05 a share.

Analysts expected adjusted earnings of 97 cents a share.

Shares were up above $160 late Wednesday, after closing up 2.9% at $134.42 in regular trading.

CEO Todd McKinnon said "as AI agents transform every layer of technology, every agent needs a trusted identity and clear controls over what it can access and do."

Okta's stock is up 55% so far this year through Wednesday's close, and up 45% over the past 12 months.

For its full fiscal year that ends in January, Okta projects revenue of $3.216 billion to $3.226 billion, up 10% to 11% from the prior year.

It guided for adjusted full-year earnings of $3.90 to $3.94 a share.

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