CrowdStrike and Okta shares jump on second-quarter beats and raised outlooks
Shares in CrowdStrike Holdings Inc. and Okta Inc. both jumped in late trading today after the two security companies beat expectations in their July quarters.
CrowdStrike shares were up more than 10% after the bell and Okta shares more than 19%. Both raised their full-year outlooks. Executives at each company pointed to enterprise deployment of artificial intelligence agents as the force pulling customers toward larger security commitments.
For its fiscal 2027 second quarter, which ended July 31, CrowdStrike reported adjusted earnings of 31 cents per share, up from 23 cents in the same quarter of the previous fiscal year, on revenue of $1.47 billion, up 26% year-over-year. Analysts were expecting 29 cents per share on revenue of $1.44 billion. Per-share figures reflect a four-for-one stock split completed in July.
Net new annual recurring revenue reached $332.8 million, up 51% from a year earlier and well clear of the $284 million to $286 million CrowdStrike guided to in June. Total annual recurring revenue stood at $5.84 billion as of July 31, up 25% year-over-year. Accounts running on Falcon Flex, the flexible licensing arrangement the company has pushed since 2024, carried more than $2.29 billion of that total, and their annual recurring revenue grew 101%. Subscription revenue was $1.4 billion, up 27%.
