CrowdStrike, Palo Alto surge 95–113% as AI threats spur cyber demand

What happened

CrowdStrike and Palo Alto Networks rallied 95% and 113%, respectively, between April and June for their best quarter on record. The surge was driven by new artificial intelligence tools that have increased demand for more sophisticated cyber defense, particularly following the emergence of Mythos-class models capable of being used by hackers to uncover software vulnerabilities.

Why it matters

Both companies have positioned themselves at the forefront of the AI cybersecurity race by gaining early access to Mythos as Project Glasswing partners and adopting OpenAI's Daybreak. Palo Alto closed a $25 billion（約4兆円） acquisition of identity security company CyberArk earlier this year, while CrowdStrike invested in startup SGNL—moves that suggest businesses are scrambling to protect themselves against AI-powered cyber-attacks and are turning to established market leaders for that protection.

What to watch

Palo Alto CEO Nikesh Arora reported over 1,200 customers reached out to discuss cybersecurity since Mythos, with 800 meetings held in a six-week period. CrowdStrike's Falcon Shield identity protection platform ended its fiscal first quarter with four-times annual recurring revenue growth. Both stocks dropped after recent earnings despite strong results, as investors demanded even more momentum.