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May 29, 2026, 7:24 AM

Okta jumps 8%, tops first-quarter results on agentic AI demand

Okta (OKTA), a prominent provider of cloud-based identity-software solutions, reported financial results for its fiscal fourth quarter that surpassed analyst expectations. The company attributed its robust performance, in part, to the escalating demand for security solutions tailored for artificial intelligence agents. Following the earnings announcement, Okta's shares experienced an uptick in after-hours trading.

For the fiscal fourth quarter, which concluded on January 31, 2026, Okta announced total revenue of $761 million. This figure marked an 11% increase compared to the revenue generated in the same period of the previous fiscal year. The reported revenue notably exceeded the $750 million consensus estimate from analysts tracked by FactSet, as highlighted by Morningstar.

The company's adjusted earnings per share (EPS) for the quarter also demonstrated strength, rising to 90 cents. This was an increase from 78 cents per share reported a year prior and surpassed the FactSet analysts' consensus projection of 85 cents per share, Morningstar reported.

Okta's management indicated that a significant factor contributing to these strong fourth-quarter results was the growing need for enhanced security measures specifically tied to agentic AI. These advanced AI agents, which are designed to autonomously execute tasks, have gained considerable traction throughout 2026, with Okta positioning itself to capitalize on this momentum, Morningstar noted. Okta CEO Todd McKinnon emphasized the role of strong customer trust in these positive outcomes, according to AlphaSpread.

Beyond the headline revenue and EPS figures, Okta also provided updates on other key business metrics. Current remaining performance obligations (cRPOs), which represent contracted future revenue, saw a 12% increase year-over-year. The company's net retention rate, an indicator of customer loyalty and spending, stabilized at 106%, suggesting underlying business stability, Seeking Alpha reported. Furthermore, Okta's agentic identity strategy is focused on critical areas such as governance, discovery, and platform expansion, supporting continued subscription growth, Futurum Group highlighted.

Despite the positive fourth-quarter performance, the market's reaction was somewhat tempered by the company's forward-looking statements. Okta's shares climbed 1.8% in after-hours trading, a gain that occurred even as the company released revenue guidance for the subsequent quarter that fell short of analysts' projections, Morningstar stated.

Looking ahead, Okta issued its revenue guidance for the first quarter of fiscal year 2027. The company anticipates revenue to fall within the range of $749 million to $753 million. This forecast is below the $755 million that analysts had modeled for the period, Morningstar reported. The company also provided a weaker revenue outlook for the entire fiscal year. AlphaSpread further pointed out that this guidance implies the slowest growth rate for Okta since its initial public offering (IPO), underscoring a cautious outlook despite recent successes.

Sources