Feb. 5 at 8:27 PM
Okta is well positioned to benefit from the rapid adoption of AI agents, as these digital workers require the same identity security and access controls as human users. The company’s expanding role in securing, governing, and managing AI agents adds a new growth driver to its already large
$80 billion addressable market.
Financial momentum is improving. Okta reported third-quarter revenue of
$742 million, up 12% year over year, while adjusted earnings per share rose 22% to
$0.82. The company is generating growing free cash flow, seeing increased large-enterprise adoption, and posted record remaining performance obligations of
$2.3 billion. Management also authorized a
$1 billion share buyback and raised fiscal 2026 guidance, projecting 11% revenue growth and EPS of
$3.43–
$3.44, about a 22% increase from 2025.
Despite these positives, the stock remains about 35% below its 52-week high and trades at a relatively modest 23 times forward earnings.
$OKTA