CrowdStrike and Okta Trade at Big Premiums Despite Unproven AI Payoff

Cybersecurity stocks have enjoyed a good run in 2026 as investors bet on the idea that they’ll benefit from companies shoring up their defenses against AI-fueled online threats. The S&P Kensho cybersecurity index is up 41% this year compared to an 11% rise in the S&P 500 over the same period.

But some of the names attracting the most interest, such as cloud-based security firm CrowdStrike and identity security software provider Okta, have soared to valuation highs that should give investors in the sector pause. So far, there’s limited evidence that their revenue growth is getting a boost from new AI concerns.