CrowdStrike, Okta shares jump on strong July-quarter results
This digest was compiled by AI from multiple sources — links to the originals are below.
CrowdStrike Holdings Inc. and Okta Inc. shares surged in late trading after both security companies beat expectations for their July quarters. CrowdStrike shares rose more than 10% and Okta shares more than 19% after the bell. Both companies raised their full-year outlooks, citing enterprise deployment of AI agents.
Key Facts
- CrowdStrike reported adjusted earnings of 31 cents per share on revenue of $1.47 billion for its fiscal 2027 second quarter ended July 31.
- Net new annual recurring revenue reached $332.8 million, up 51% year-over-year and above the company's guidance of $284 million to $286 million.
- Okta shares jumped more than 19% in late trading after the company beat expectations and raised its full-year outlook.
- CrowdStrike's total annual recurring revenue stood at $5.84 billion as of July 31, up 25% year-over-year.
- CrowdStrike founder and CEO George Kurtz called the quarter the best in the company's history.
CrowdStrike Financial Results
For its fiscal 2027 second quarter ended July 31, CrowdStrike reported adjusted earnings of 31 cents per share, up from 23 cents in the same quarter a year earlier, on revenue of $1.47 billion, up 26% year-over-year. Analysts had expected adjusted earnings of 29 cents per share on revenue of $1.44 billion. Net new annual recurring revenue reached $332.8 million, up 51% from a year earlier and well above the company's June guidance of $284 million to $286 million. Total annual recurring revenue stood at $5.84 billion as of July 31, up 25% year-over-year. Subscription revenue rose 27% to $1.4 billion.
AI Agent Adoption
Executives at both CrowdStrike and Okta pointed to enterprise deployment of artificial intelligence agents as the force pulling customers toward larger security commitments. CrowdStrike unveiled Continuous Identity for AI Agents, a product that extends risk-aware authorization across human, machine and agent identities. Accounts running on Falcon Flex, CrowdStrike's flexible licensing arrangement, carried more than $2.29 billion of total annual recurring revenue, with their ARR growing 101% year-over-year. CrowdStrike founder and CEO George Kurtz said the quarter was the best in the company's history and that AI adoption means security, which is CrowdStrike.
Market Reaction and Outlook
CrowdStrike shares were up more than 10% after the bell, while Okta shares rose more than 19%. Both companies raised their full-year outlooks following the strong quarterly results. CrowdStrike posted unadjusted net income of $5.3 million, or one cent per share, compared with a loss of $70.2 million, or seven cents per share, in the second quarter of fiscal 2026. Operating cash flow of $530.3 million and free cash flow of $377.4 million were both second-quarter records for CrowdStrike.
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CrowdStrike, Okta shares jump on strong July-quarter results
