CrowdStrike and Okta stocks surge on strong AI-driven earnings

CrowdStrike and Okta reported quarterly earnings that exceeded Wall Street expectations, leading to significant surges in their stock prices. CrowdStrike shares rose 20% during its best trading day on record, while Okta shares increased nearly 29%.

Both companies identified the rise of artificial intelligence as a primary driver for increased customer spending on security. CrowdStrike CEO George Kurtz described the current landscape as an “arms race,” noting that AI is increasing both the frequency of cyberattacks and the necessity for robust security defenses. The company reported that adoption of its Falcon platform doubled year-over-year.

Okta reported that its new products accounted for nearly one-third of total bookings, including dozens of AI-related deals in the second quarter. While Bank of America analysts upgraded Okta to a neutral rating due to accelerating AI growth, they noted that broader adoption is still in its preliminary stages.