Both companies beat Wall Street’s estimates<\/a> for the fiscal second quarter and raised their forecasts<\/a>, citing the AI agent threat. CrowdStrike gained 15% while Okta surged 21%. The broader cyber sector rallied as well, with Palo Alto Networks<\/a>, SailPoint<\/a>, Zscaler<\/a> and Rubrik<\/a> up about 9%. <\/p>\n “We’re in an arms race,” CrowdStrike CEO George Kurtz said during an earnings call with analysts on Wednesday. “AI is driving more cyberattacks. AI is driving more cyber spending. AI is driving a clear divide between the cybersecurity companies that solve problems and those that compound problems.”<\/p>\n Tune in at 6 p.m. ET for “Mad Money” as Kurtz joins CNBC’s Jim Cramer. Watch in real time on CNBC+ or the CNBC Pro stream.<\/p>\n The company’s flexible Falcon platform offering, which lets customers switch out security tools, doubled year over year, he added.<\/p>\n The release of advanced AI models like Anthropic<\/a>‘s Mythos, and attacks<\/a> such as OpenAI<\/a>‘s Hugging Face<\/a> hack, have raised the stakes<\/a> for the cybersecurity sector in recent months, forcing businesses to scale their security stacks to combat mounting attacks orchestrated by AI agents. <\/p>\n One clear winner has been identity security tools that help businesses secure and manage the explosion in AI agents. Amid this backdrop, cybersecurity stocks have rocketed to fresh highs, with both CrowdStrike and Okta up more than 80% each. <\/p>\n Wednesday’s earnings marked the unofficial start of the reporting season for the cyber sector, with Palo Alto Networks and Zscaler<\/a> among the companies set to report next week,<\/p>\n Analysts at Deutsche Bank remain “optimistic” about the sector’s growth in the AI era, but are waiting on upcoming reports to solidify near-term demand trends.<\/p>\n Okta CEO Todd McKinnon touted the company’s early success with new products, which accounted for nearly a third of total bookings. <\/p>\n “While\u00a0adoption\u00a0remains\u00a0in\u00a0its\u00a0early\u00a0stages,\u00a0momentum\u00a0is\u00a0growing,\u00a0and\u00a0those\u00a0advantages\u00a0are translated into\u00a0customer\u00a0demand\u00a0reflected\u00a0in\u00a0the\u00a0dozens\u00a0of\u00a0AI deals\u00a0we\u00a0won\u00a0in\u00a0Q2,” he said on a Wednesday earnings call.<\/p>\n Following the results, analysts at Bank of America upgraded shares to neutral from an underperform rating on accelerating AI growth, but warned of limited upside ahead.<\/p>\n “We are increasingly encouraged by Okta’s AI opportunity and early customer traction,” the firm wrote. “However, adoption remains very early, disclosed metrics remain limited, and management continues to view AI as immaterial to FY27 results.”<\/p>\n
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