CrowdStrike jumps 11% on record second quarter as 'Mythos moment' drives AI cyber wave

CrowdStrike popped more than 11% in extended trading after the cybersecurity company topped Wall Street's fiscal second-quarter estimates and boosted guidance as artificial intelligence threats mount.

Revenue jumped 26% in Q2 from $1.17 billion a year ago, with CEO George Kurtz calling it "the best quarter in CrowdStrike's history" in the earnings release.

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

Anthropic 's release of its advanced Mythos model, capable of exploiting previously unknown software vulnerabilities, has upended the cyber industry in recent months and sparked demand for new security tools.

CrowdStrike's annual recurring revenue rose 25% year over year to $5.84 billion, which included record net new annual recurring revenue of $333 million, the company said. Net income totaled $5.3 million, or 1 cent per share, compared to a net loss of $70.2 million, a loss of 7 cents per share, a year ago.

Agentic AI is driving demand for security tools to protect companies from proliferating threats. The backdrop has powered shares of CrowdStrike and its competitors to all-time highs, with the stock up more than 61% this year.

CrowdStrike said its Falcon Flex offering, which allows customers to deploy and swap out different security tools, more than doubled from a year ago. Kurtz said on the earnings call that the company added 935 Flex accounts during the quarter and these accounts comprised its top 10 deals by deal value.

Finance chief Burt Podbere said the Flex setup is helping CrowdStrike win bigger, longer-term deals and allowing customers to buy multiple products under one single platform.