- CRWD
- PANW
- NVDA
Cybersecurity spending continues to climb, and artificial intelligence (AI) is creating even more systems that businesses need to protect. In fact, technology research firm Gartner estimates that global information security spending will reach roughly $244 billion in 2026. Gartner also expects spending specifically on AI cybersecurity to nearly double from $25.9 billion in 2025 to $51.3 billion this year. Two companies are particularly well positioned to capture that spending are CrowdStrike (NASDAQ: CRWD) and Palo Alto Networks (NASDAQ: PANW).
CrowdStrike
CrowdStrike built its reputation protecting computers and other devices from cyberattacks. But its Falcon platform has expanded well beyond that.
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Today, CrowdStrike offers 34 cloud-based security modules covering everything from endpoint and cloud security to identity protection, threat intelligence, data protection, and cybersecurity for generative AI. That broad portfolio gives CrowdStrike a strategic advantage. You see, once a business uses Falcon for one security function, CrowdStrike can sell that customer additional products without having to win an entirely new account. In fact, 51% of its subscription customers now use at least six Falcon modules, while 26% use eight or more.
In its fiscal 2027 second quarter, CrowdStrike generated $1.47 billion in revenue, up 26% year over year. Annual recurring revenue (ARR) increased by 25% to $5.84 billion, while the company added a record $333 million of new ARR during the quarter.
Then there’s cash flow. CrowdStrike generated a record $377 million in free cash flow during the quarter, up from $284 million a year earlier. Management now expects fiscal 2027 revenue of approximately $6 billion and ARR of roughly $6.6 billion.
The truth is, companies aren’t simply deploying AI software anymore. They’re increasingly deploying autonomous AI agents that can access corporate systems, data, and applications. Those agents create another category of digital surface that needs protection.
CrowdStrike is already building security products specifically for AI agents. Its Falcon Guardian platform is designed to discover AI agents operating across an organization, monitor what they’re doing, detect suspicious behavior, and stop compromised agents in real time.
