27 August 2026
CrowdStrike and Okta surge on AI-driven cybersecurity spending
First reported
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- CrowdStrike, which makes security software, gained 20% Thursday after beating earnings forecasts and raising guidance, citing growing cyberattacks powered by AI agents.
- Okta, an identity management company, surged 29% after reporting that new AI-focused products accounted for 30% of quarterly bookings and closing dozens of AI deals.
- Both companies say AI is forcing businesses to buy more security tools. Okta CEO Todd McKinnon predicts identity security will become the largest cybersecurity category within five to ten years as AI agents proliferate.
- Okta closed a roughly 200 million dollar acquisition of Permiso Security, a threat detection startup, and plans more targeted purchases to build AI security capabilities.
- The broader cybersecurity sector rallied, with Palo Alto Networks, Zscaler, SailPoint and Rubrik each rising at least 10% on signs that AI-related security demand is accelerating.