CrowdStrike vs. Okta: Which Cybersecurity Stock Is a Better Buy in 2026?
2026-10-13 13:29
•Sara Appino •The Motley Fool
••••• ••••• Axe Cap view
CrowdStrike vs Okta: Prioritising Growth Over Profitability in Cybersecurity
Despite Okta’s profitability milestone, CrowdStrike’s faster growth and AI-driven market expansion make it the preferred investment for 2026.
South African investors watching global cybersecurity trends should lean towards growth rather than near-term profit in this sector. CrowdStrike posted stellar revenue growth of 21.7% and record annual recurring revenue, reflecting a robust presence in endpoint and cloud security markets. Its AI-focused addressable market is rapidly expanding, an edge in today’s innovation-driven environment. Okta has turned profitable with 11.8% revenue growth and strong bookings, showing operational discipline. But growth matters more in tech investments like these, especially for longer-term upside. On the JSE, we don’t have direct equivalents to CrowdStrike or Okta, so consider USD/ZAR as the proxy. A strengthening rand could dampen dollar-based returns but slower tech adoption locally means wait-and-watch is warranted here. The main risk is aggressive competition from Microsoft bundling identity and security into cost-effective packages, potentially pressuring CrowdStrike’s margins and market share. this is just our opinion and not financial advice
We would buy CrowdStrike for exposure to fast growth and AI innovation, trimming on any sharp rallies. Avoid Okta for now, given slower growth despite profitability. Monitor USD/ZAR closely for currency impact.
- CRWD
- OKTA
- USD/ZAR
- Microsoft aggressively bundling cybersecurity products
- Rand volatility impacting foreign currency earnings
6/10
CrowdStrike and Okta are compared as cybersecurity investments for 2026. CrowdStrike posted record quarterly results with 21.7% revenue growth but reported widening net losses. Okta achieved profitability with 11.8% revenue growth and record bookings. The article recommends CrowdStrike due to faster growth and expanding AI-driven addressable market, though both companies are considered worth owning.
Our take is based on reporting first published by The Motley Fool.