CrowdStrike Shares Surge 20.5% as AI Threats Drive Record Demand

CrowdStrike Holdings (CRWD) shares climbed 20.5% following a record fiscal second-quarter performance, as Chief Executive George Kurtz linked the demand spike to an increase in artificial intelligence (AI)-powered cyberattacks.

The cybersecurity firm surpassed analyst expectations for both revenue and earnings, and lifted its full-year forecast after the quarterly release.

AI Threat Demand Fuels Record Quarter

Revenue for the quarter reached $1.47 billion, a 26% increase from a year earlier and ahead of the $1.44 billion consensus. On an adjusted basis, the company earned $0.31 per share, beating the $0.29 forecast.

Net new annual recurring revenue (ARR), which tracks new subscription commitments, set a record at $332.8 million, 51% higher than the prior year. Total ARR rose 25% to $5.84 billion.

Kurtz attributed the performance to what he termed the "Mythos moment," referring to Anthropic’s Mythos model launch. According to reports, the model can exploit previously unknown software vulnerabilities, elevating AI security on corporate agendas.

"The Mythos moment translated into mass-market acceptance that AI adoption needs security, and that’s CrowdStrike. Every enterprise will run on AI, and securing it is the largest market opportunity in our history."
George Kurtz, CrowdStrike Founder and CEO

During the earnings call, Kurtz spoke of an "arms race" where AI is both increasing attacks and boosting security expenditure.

The company increased its full-year net new ARR growth outlook by 630 basis points, to about 34% at the midpoint. Full-year revenue guidance was also raised, to a range of $5.99 billion to $6.01 billion.

The quarterly figures align with CrowdStrike's earlier research highlighting AI-based threats, and come after Jim Cramer's stock picks identified cybersecurity as a leading theme for 2026.

CrowdStrike emerges among cybersecurity firms capitalizing on growing corporate concern about AI-driven threats, a development expected to influence spending patterns in upcoming earnings periods.