CrowdStrike and Okta shares surge as AI drives cybersecurity spending to new highs

The AI boom has a less glamorous but increasingly lucrative cousin: the AI security boom. CrowdStrike and Okta just proved it with earnings reports that sent their stocks soaring and dragged the entire cybersecurity sector higher. CrowdStrike shares climbed as much as 15% following its fiscal second-quarter 2027 results, while Okta surged roughly 20-22%. CrowdStrike posts its best quarter ever CrowdStrike delivered record revenue of $1.47B for Q2 FY2027, a 26% jump year-over-year. The real headline, though, was the company’s net new Annual Recurring Revenue, which hit $333M, a 51% increase compared to the same quarter last year. Total ending ARR now sits at $5.84B, up 25% year-over-year. Management raised full-year net new ARR growth guidance to approximately 34% at the midpoint. The company’s Falcon Flex ARR also crossed a notable milestone, surpassing $2.29B, a 101% increase year-over-year. Okta rides the AI identity wave Okta posted Q2 FY2027 revenue of $805M, an 11% year-over-year increase, with adjusted earnings per share of $1.05 that beat analyst estimates. The company raised its full-year revenue guidance to a range of $3.22B to $3.23B. Analysts responded by upgrading their...