OKTA
NASDAQ · Technology · Software - Infrastructure · US
Research · Sep 3, 2026
[OKTA] Okta Thesis 2026: AI Identity Management Drives Rule of 40 Milestone Year
Okta, Inc. (OKTA) FY26 (Jan) revenue $2.919B (+11.8%); op income $153M (first full-year profit vs -$74M FY25); NI $235M (+739%); EPS $1.31; FCF $905M (+24%, ~31% margin); Rule of 40 achieved. Total debt $422M (-56%); $2.5B+ cash; $1B buyback authorized. $3B+ ACV milestone; Q4 record TCV ~$1.3B. New products ~30% of Q4 bookings: Okta Identity Governance (OIG) 2,000+ customers, Okta Privilege Access (PAM), ISPM, Identity Threat Protection, Device Access, Fine-Grained Authorization. AI products: Auth0 for AI Agents + Okta for AI Agents; ~40% contract uplift when AI products included. AWS Marketplace +45% FY26; channel partners in 18/20 top Q4 deals. Workforce Identity Cloud (WIC) ~70% revenue; Auth0/Customer Identity ~30%. Q2 FY26: DOD deal + 5/10 top deals US public sector. Acxiom Security acquisition (PAM). FY27 guide: revenue +9% (~$3.18B); non-GAAP op margin 25-26%; FCF margin 27-28%; Q1 FY27 FCF margin 33-35%. FY27 priorities: Okta Secures AI, large customers, US federal + regulated industries default. Headwinds: 1-pt professional services → partner shift; 1-pt lower interest income; non-GAAP tax rate 21%. Risks: growth deceleration, Microsoft Entra competition, federal/DOGE uncertainty, SBC dilution, Auth0 CIAM competition, macro SaaS spend.
Research · Sep 2, 2026
Enterprise Software Licensing Folds AI Agent Usage Into Seat Contracts
GitLab and Palo Alto Networks say they're folding AI agent usage into existing customer contracts instead of pricing agents separately, while seat counts keep rising.
Research · Jun 2, 2026
PANW, CRWD and the Software AI Capex Second Wave
Six of eight software names are above their 200-day MA as PANW posts FY26 Q3 strength and CRWD prints a second-wave beat.