CrowdStrike and Okta stocks surge on rising AI security demand

Cybersecurity firms CrowdStrike and Okta reported strong fiscal second-quarter earnings, driven by increased corporate spending to combat artificial intelligence-related threats. CrowdStrike shares saw a record single-day gain of 20%, while Okta shares surged nearly 29% following results that exceeded Wall Street expectations and included raised financial guidance.

CrowdStrike CEO George Kurtz described the current landscape as an “arms race,” noting that AI is simultaneously creating more sophisticated attacks and driving higher security budgets. Kurtz highlighted the rise of “autonomous campaigns” or “Agent-states,” where coordinated AI agents execute attacks at machine speed. To counter this, CrowdStrike and Nvidia launched SafeMind, an agentic defense system designed to learn from blocked attacks.

Okta CEO Todd McKinnon noted that new products accounted for nearly a third of total bookings, with the company securing dozens of AI-focused deals. The positive momentum extended to the broader sector, with companies such as Palo Alto Networks, Zscaler, and Rubrik also seeing significant stock increases.