CrowdStrike falls 8% and Palo Alto Networks drops 3% after earnings despite AI tailwinds

According to CNBC, shares of CrowdStrike (CRWD) and Palo Alto Networks (PANW) fell 8% and 3%, respectively, after their latest earnings reports, even as enthusiasm around Anthropic’s Mythos model has boosted sentiment for cybersecurity stocks. Jefferies software analyst Joseph Gallo said investors may have gotten ahead of themselves, noting that while both companies issued accelerating guidance, AI-related benefits can take time to materialize. Anthropic’s Mythos model helped drive a rally that lifted CrowdStrike and Palo Alto Networks shares more than 70% each between April and the end of May, and both companies were early partners in Anthropic’s Project Glasswing testing program, which was expanded this week to 150 additional partners including Rubrik and Tenable. Palo Alto Networks CEO Nikesh Arora told analysts that more than 1,200 companies had reached out to discuss AI strategy and that the company held 800 meetings over the last six weeks, but he cautioned against expecting an immediate windfall. CrowdStrike CEO George Kurtz said the company raised its fiscal 2027 net new annual recurring revenue growth outlook on AI tailwinds and added that its second-quarter pipeline has already surpassed $50 million.