CrowdStrike's quarter shows AI is a cybersecurity tailwind, not a threat

An important development from the financial markets: Shares of CrowdStrike jumped 10% after the company delivered another beat-and-raise quarter, cementing our thesis that cybersecurity has become one of the most critical investment priorities for companies in a post-Mythos world. Revenue in CrowdStrike's fiscal 2027 second quarter increased 26% year over year to $1. 47 billion, exceeding the $1.

44 billion consensus estimate, according to LSEG. Adjusted earnings per share (EPS) increased 35% to $0. 31 in the quarter ended July 31, ahead of the $0.

Economic Details

29 estimate, LSEG data showed. CRWD 1Y mountain CrowdStrike 1-year performance The stock had pulled back heading into the print — falling in seven of the past sessions dating back to its record close of $225. 13 — but was still up roughly 61% for the year before its after-hours move.

Fellow cybersecurity firm Okta also reported strong results after the bell, with shares jumping roughly 20% following a raise in guidance. The one-two punch of these knockout reports should also lift shares of Palo Alto Networks , which reports earnings next Tuesday. Bottom line Earlier this year, the bears thought advances in AI models could disintermediate CrowdStrike.

Instead, AI has become a major accelerant for the business, and it's more than just talk. It's shown up in the numbers. "The Mythos moment translated into mass-market acceptance that AI adoption needs security, and that's CrowdStrike," founder and CEO George Kurtz said in the company's earnings release, referring to Anthropic's limited preview of its Claude Mythos AI model back in April that highlighted critical vulnerabilities at companies that humans had missed for years.

Analyst Views

"Every enterprise will run on AI, and securing it is the largest market opportunity in our history," Kurtz said. Arguably the most important metric in every CrowdStrike earnings report is its net new annual recurring revenue (NNARR), which represents the quarter-over-quarter change in ARR and measures how much new recurring business was added during the quarter. Why we own it Cybersecurity is a must-have for companies in the digital age.

Led by co-founder and CEO George Kurtz, CrowdStrike is among the best, along with fellow Club member Palo Alto Networks . The company specializes in endpoint protection through its AI-native platform called Falcon. Competitors: Palo Alto Networks, Fortinet , SentinelOne , Microsoft Portfolio weighting: 3.

62% Most recent buy: Feb. 3, 2026 Initiation date: March 24, 2026 Expectations were high into the print — with investors anticipating an acceleration in demand for cybersecurity solutions to thwart the growing threat of cyberattacks — and CrowdStrike delivered. The company's NNARR of $333 million was above the Street's $284 million estimate.

Economists are analysing what the news means for the markets.