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Will the Rising Adoption of AI Agents Boost CRWD's Identity Business?
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Key Takeaways
CrowdStrike's identity ARR grew 34% y/y to more than $585M in Q2'27.
Falcon Shield ARR surged 185%, while privileged account security ARR grew more than 35 times.
Signal handled 30 million access decisions, while a global financial firm added next-gen identity and AIDR.
CrowdStrike (CRWD - Free Report) is seeing growing demand for its identity security products as companies deploy more artificial intelligence (AI) agents. These agents need access to enterprise systems and data, creating security risks around identities, permissions and access controls. In the second quarter of fiscal 2027, CrowdStrike's identity business ending annual recurring revenues (ARR) grew 34% year over year to more than $585 million. Strong growth across the identity portfolio is helping CrowdStrike capitalize on the rising need to secure AI agents.
Falcon Shield is emerging as an important part of this business as enterprises look to secure third-party agentic applications. Its ending ARR skyrocketed more than 185% year over year in the second quarter. The company’s privileged account security offering saw ending ARR grow more than 35 times year over year. The company believes that older access controls are becoming less effective as AI agents and other non-human users become more common, which should further fuel the demand for stronger controls as companies manage more non-human identities.
CrowdStrike is also expanding its identity capabilities through Signal, which provides real-time and more detailed access controls for both human and non-human users. In one customer example, Signal handled more than 30 million unique access decisions without friction. A major global financial firm also added next-gen identity to its Falcon deployment after an AI security audit, along with AIDR to support its AI adoption. These deployments show how identity security can become a key part of securing AI use.
As companies give AI agents greater access to data and enterprise systems, the need to control these identities could increase. CrowdStrike says that customers need to manage identity, data, execution and network access as they move AI agents into production. With its identity products already showing strong growth, the rising adoption of AI agents could create another source of demand for CrowdStrike's platform. The Zacks Consensus Estimate for fiscal 2027 and 2028 indicates revenue growth of 24.6% and 22.4%, respectively.
How Competitors Fare Against CRWD
Okta Inc. (OKTA - Free Report) is expanding its identity platform to secure AI agents across enterprise environments. In the second quarter of fiscal 2027, new products accounted for about 30% of bookings, while Okta for AI Agents generated dozens of deals, including several worth more than $1 million.
The company has also made its AI agent governance product generally available for regulated environments to help customers discover, govern and protect human, non-human and agent identities through a single control layer.
Palo Alto Networks (PANW - Free Report) is also expanding its identity security capabilities through its Idira platform, which includes technology from its CyberArk acquisition. The company is targeting the growing need to secure machine identities and AI agents as enterprises deploy more autonomous systems.
Idira is designed to provide identity security and privilege controls for AI agents, while Prisma AIRS adds AI security and policy enforcement capabilities, which helps the company secure agent identities, permissions and activity as AI adoption expands.
CRWD’s Price Performance, Valuation & Estimates
Shares of CrowdStrike have upsurged 125.8% in the year-to-date period compared with the Zacks Security industry’s return of whopping 101.5%.
CRWD’s YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 39.35, significantly higher than the industry’s average of 19.86. The Zacks Value Score of F suggests that the CRWD stock is overvalued.
CRWD’s Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2027 and 2028 earnings indicates year-over-year growth of 35.5% and 28.2%, respectively. The estimate for fiscal 2027 has been unchanged over the past 30 days. The same for fiscal 2028 has been revised up by a penny over the past 30 days.
Image Source: Zacks Investment Research
CrowdStrike currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Shutterstock
Will the Rising Adoption of AI Agents Boost CRWD's Identity Business?
Key Takeaways
CrowdStrike (CRWD - Free Report) is seeing growing demand for its identity security products as companies deploy more artificial intelligence (AI) agents. These agents need access to enterprise systems and data, creating security risks around identities, permissions and access controls. In the second quarter of fiscal 2027, CrowdStrike's identity business ending annual recurring revenues (ARR) grew 34% year over year to more than $585 million. Strong growth across the identity portfolio is helping CrowdStrike capitalize on the rising need to secure AI agents.
Falcon Shield is emerging as an important part of this business as enterprises look to secure third-party agentic applications. Its ending ARR skyrocketed more than 185% year over year in the second quarter. The company’s privileged account security offering saw ending ARR grow more than 35 times year over year. The company believes that older access controls are becoming less effective as AI agents and other non-human users become more common, which should further fuel the demand for stronger controls as companies manage more non-human identities.
CrowdStrike is also expanding its identity capabilities through Signal, which provides real-time and more detailed access controls for both human and non-human users. In one customer example, Signal handled more than 30 million unique access decisions without friction. A major global financial firm also added next-gen identity to its Falcon deployment after an AI security audit, along with AIDR to support its AI adoption. These deployments show how identity security can become a key part of securing AI use.
As companies give AI agents greater access to data and enterprise systems, the need to control these identities could increase. CrowdStrike says that customers need to manage identity, data, execution and network access as they move AI agents into production. With its identity products already showing strong growth, the rising adoption of AI agents could create another source of demand for CrowdStrike's platform. The Zacks Consensus Estimate for fiscal 2027 and 2028 indicates revenue growth of 24.6% and 22.4%, respectively.
How Competitors Fare Against CRWD
Okta Inc. (OKTA - Free Report) is expanding its identity platform to secure AI agents across enterprise environments. In the second quarter of fiscal 2027, new products accounted for about 30% of bookings, while Okta for AI Agents generated dozens of deals, including several worth more than $1 million.
The company has also made its AI agent governance product generally available for regulated environments to help customers discover, govern and protect human, non-human and agent identities through a single control layer.
Palo Alto Networks (PANW - Free Report) is also expanding its identity security capabilities through its Idira platform, which includes technology from its CyberArk acquisition. The company is targeting the growing need to secure machine identities and AI agents as enterprises deploy more autonomous systems.
Idira is designed to provide identity security and privilege controls for AI agents, while Prisma AIRS adds AI security and policy enforcement capabilities, which helps the company secure agent identities, permissions and activity as AI adoption expands.
CRWD’s Price Performance, Valuation & Estimates
Shares of CrowdStrike have upsurged 125.8% in the year-to-date period compared with the Zacks Security industry’s return of whopping 101.5%.
CRWD’s YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, CrowdStrike trades at a forward price-to-sales ratio of 39.35, significantly higher than the industry’s average of 19.86. The Zacks Value Score of F suggests that the CRWD stock is overvalued.
CRWD’s Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2027 and 2028 earnings indicates year-over-year growth of 35.5% and 28.2%, respectively. The estimate for fiscal 2027 has been unchanged over the past 30 days. The same for fiscal 2028 has been revised up by a penny over the past 30 days.
Image Source: Zacks Investment Research
CrowdStrike currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.