Palo Alto and CrowdStrike post record quarter as AI threats lift cybersecurity demand

Palo Alto Networks and CrowdStrike both reported their strongest quarter on record, helped by rising demand for cybersecurity tools as AI systems become more capable. The companies have benefited from concern that advanced AI models could be used to find software flaws and carry out attacks faster and at greater scale. That has pushed businesses to strengthen defenses and increased interest in cybersecurity platforms. Both firms have also been active in AI security efforts, including early testing programs with Anthropic and OpenAI. Analysts said the companies are well positioned to keep gaining share, though investor expectations have also become harder to meet after their strong run.