Okta (OKTA) — Company Research

Last Updated: 8 Oct 2026

Okta, Inc. (NASDAQ: OKTA) is the largest independent identity provider, selling cloud software that controls who and what can sign in to applications — employees, customers and, increasingly, AI agents. Fiscal 2026 (year to 31 January 2026) was the company's first full year of meaningful GAAP profitability: revenue rose 12% to $2,919 million, GAAP operating income reached $149 million and net income $235 million. The second quarter of fiscal 2027 then delivered an 11% revenue increase to $805 million, a raised full-year outlook and a sharp re-rating of the shares. This refreshed report covers Okta's business model, five-year financial record, valuation, product roadmap, competitive position, insider activity and risks, using figures drawn from the company's own filings and press releases.

1. Company Snapshot

Okta was founded in San Francisco in 2009 by Todd McKinnon and Frederic Kerrest and listed on Nasdaq in April 2017. It acquired the developer-focused identity platform Auth0 in May 2021, which now forms the core of its Customer Identity business. The fiscal year ends on 31 January, so “fiscal 2027” is the twelve months to 31 January 2027.

Field	Value
Ticker / Exchange	OKTA / Nasdaq
Sector	Technology — identity and access management software
Headquarters	San Francisco, California
Founded / Listed	2009 / IPO 7 Apr 2017
CEO / Leadership	Todd McKinnon (Co-founder & Chief Executive Officer); Brett Tighe (CFO); Eric Kelleher (President & COO)
Employees	6,366 (31 Jan 2026, FY2026 10-K); about 6,570 at 31 Jul 2026 per company commentary
Market cap	~$38.1bn (174.8m shares at $218.00 close, 7 Oct 2026)
FY2026 Revenue	$2,919m (+12%)
FY2026 GAAP net income	$235m (diluted EPS $1.31)
Customers	More than 20,000; 5,255 with annual contract value above $100k (Q2 FY2027)
Remaining performance obligations	$4,858m (+17%), 31 Jul 2026
52-week range	$62.66 – $226.44

2. Bull vs Bear

Bull Case

• Profitability has turned decisively: GAAP operating income moved from a $768m loss in FY2022 to a $149m profit in FY2026, and Q2 FY2027 GAAP operating margin reached 13% with non-GAAP operating margin of 28%.
• Cash generation funds buybacks and a clean balance sheet: trailing free cash flow is roughly $960m, the last $350m of convertible notes was repaid in June 2026, and a $1bn buyback (authorised 5 Jan 2026) had $555m remaining at 31 Jul 2026.
• Forward indicators are accelerating: RPO grew 17% to $4.86bn and current RPO 14% to $2.59bn in Q2 FY2027, ahead of 11% revenue growth, and customers above $1m ACV rose 22% to 605.
• AI-agent identity is a new demand vector: Okta for AI Agents is generally available, Cross App Access added 25+ integrations and Agent SSO launched at Oktane 2026 — positioning Okta as the neutral control plane for non-human identities.
• Guidance raised twice in two quarters: FY2027 revenue guidance now stands at $3.216–3.226bn and non-GAAP EPS at $3.90–3.94, up from $3.74–3.82 in March.

Bear Case

• Growth is still decelerating: revenue growth slowed from 56% in FY2022 to 12% in FY2026, and Q3 FY2027 guidance implies about 10%, with net retention of only 107%.
• Bundled competition from Microsoft: Entra ID is included in Microsoft 365 enterprise licences and is adding agent-identity controls of its own, pressuring Okta's pricing in workforce identity.
• Valuation now prices in success: after rising from a low of $62.66 to above $218, the shares trade on ~131x trailing GAAP EPS and ~40x trailing free cash flow.
• Heavy insider selling into the rally: the CEO, CFO, COO and Chief Legal Officer sold more than $45m of stock between June and September 2026, mostly under 10b5-1 plans.

3. Business Segments

Okta reports as a single operating segment. The table below uses the revenue categories it discloses. By annual contract value (ACV), Workforce Identity accounted for 59% and Customer Identity (Auth0) for 41% in Q2 FY2027, growing 11% and 13% respectively. Geographically, the United States produced about $2,321m (roughly 80%) of FY2026 revenue and international markets about $598m (roughly 20%).

Segment / category	% of FY2026 revenue	What it is
Subscription	~97.8% ($2,855m)	Recurring SaaS fees for Workforce Identity (single sign-on, adaptive MFA, Universal Directory, Workflows, Identity Governance, Privileged Access, Identity Threat Protection) and Customer Identity (Auth0, Okta Customer Identity, Fine Grained Authorization), plus AI-agent identity products.
Professional services & other	~2.2% ($64m)	Implementation, training and consulting services; Okta is moving most service delivery to channel partners, which management says creates about a one-point revenue headwind in FY2027.

4. Business Model & Moat

How it makes money. Okta sells multi-year subscriptions priced per user (for workforce) or per monthly active user (for customer identity), with add-on modules such as Identity Governance and Privileged Access sold into the installed base. Subscription revenue was $793m of the $805m Q2 FY2027 total, giving very high revenue visibility, and the $4.86bn RPO backlog covers well over a year of revenue.

Integration network. The Okta Integration Network contains more than 7,000 pre-built connectors to SaaS and on-premise applications. Each new integration makes Okta more useful to every customer and harder for a rival to replicate quickly.

Switching costs. Identity sits underneath every application login in an organisation. Replacing it means re-wiring authentication across hundreds of apps and retraining users — a disruptive, risky project that most IT teams avoid once Okta is embedded.

Neutrality. Okta's pitch is that it is the independent identity layer that works equally well across Microsoft, Google, AWS and thousands of SaaS vendors. That neutrality matters more as AI agents need to act across many vendors' systems, and it underpins initiatives such as the Cross App Access standard and the Blueprint Alliance announced in September 2026.

5. Financial Health

The five-year record shows a company that grew rapidly through the Auth0 acquisition, then traded growth for margin. Revenue growth halved between FY2023 and FY2026, but GAAP EPS swung from a $5.73 loss to a $1.31 profit and the convertible debt pile was retired.

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2022	$1,300m	+55.7%	($5.73)	($0.46)	$0.00	$1,816m
FY2023	$1,858m	+42.9%	($5.16)	($0.04)	$0.00	$2,193m
FY2024	$2,263m	+21.8%	($2.17)	$1.60	$0.00	$1,154m
FY2025	$2,610m	+15.3%	$0.06	$2.81	$0.00	$349m
FY2026	$2,919m	+11.8%	$1.31	$3.50	$0.00	$0m†

Fiscal years end 31 January (FY2026 = year to 31 Jan 2026). Adjusted EPS is Okta's non-GAAP diluted EPS, which excludes stock-based compensation, acquisition-related amortisation and other items; from FY2027 the company uses a 21% non-GAAP tax rate, down from 26%. Long-term debt is the non-current carrying value of convertible senior notes per SEC XBRL filings; FY2023 is higher than FY2022 because an accounting change (ASU 2020-06) removed the equity component discount. †At 31 Jan 2026 the remaining $350m of 2026 notes was classified as current; it was repaid in cash in June 2026, leaving no convertible debt outstanding. Okta has never paid a dividend.

Quarter / Half	Revenue ($m)	Adjusted EPS	GAAP EPS
Q2 FY2027 (to 31 Jul 2026)	$805m (+11%)	$1.05	$0.65
Q1 FY2027 (to 30 Apr 2026)	$765m (+11%)	$0.91	$0.42
Q4 FY2026 (to 31 Jan 2026)	$761m (+11%)	$0.90	$0.35
Q3 FY2026 (to 31 Oct 2025)	$742m (+12%)	$0.82	$0.24
Q2 FY2026 (to 31 Jul 2025)	$728m	$0.91	$0.37
Q1 FY2026 (to 30 Apr 2025)	$688m	$0.87‡	$0.35
FY2026 total	$2,919m	$3.50	$1.31

‡Q1 FY2026 adjusted EPS derived as the FY2026 total ($3.50) less the three later quarters. Quarterly EPS may not sum exactly to the annual figure because of share-count changes. Q2 FY2027 free cash flow was $227m (28% margin) and operating cash flow $234m; cash and short-term investments totalled $2,299m at 31 Jul 2026. For Q3 FY2027 management guided to revenue of $813–817m and non-GAAP EPS of $0.92–0.94.

6. Valuation

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Market cap	~$38.1bn (174.8m shares at $218.00 close, 7 Oct 2026)
Trailing P/E (GAAP)	~131x ($218.00 / LTM GAAP diluted EPS $1.66 = FY2026 $1.31 − H1 FY2026 $0.72 + H1 FY2027 $1.07). On LTM non-GAAP EPS of $3.68 the multiple is ~59x.
P/E (forward)	~56x ($218.00 / $3.92, the midpoint of management's FY2027 non-GAAP EPS guidance of $3.90–3.94)
P/S (TTM)	~12.4x (market cap ~$38.1bn / LTM revenue $3,073m = FY2026 $2,919m − H1 FY2026 $1,416m + H1 FY2027 $1,570m)
P/FCF	~40x (market cap ~$38.1bn / LTM FCF ~$961m; FCF = LTM operating cash flow $987m − capex $8m − capitalised internal-use software $18m, per 10-K and 10-Q cash flow statements)
Enterprise value	~$35.8bn (market cap ~$38.1bn + total debt $0m − cash and short-term investments $2,299m per 31 Jul 2026 balance sheet; operating leases excluded)
EV/EBITDA (TTM)	~109x (EV ~$35.8bn / LTM EBITDA ~$328m; EBITDA = LTM GAAP operating income $232m + D&A ~$96m, using FY2026 total depreciation $13m plus intangible amortisation $83m as the LTM proxy). GAAP EBITDA is depressed by stock-based compensation, so this multiple is high relative to cash-based measures.
52-week high	$226.44
52-week low	$62.66
Short interest (% of float)	4.92% (8.21m shares, settlement 15 Sep 2026, MarketBeat)
Days to cover	2.2 (15 Sep 2026 settlement)

7. What Are They Building

Identity for AI agents. The centrepiece of Okta's roadmap is securing non-human identities. Okta for AI Agents is now generally available for workforce customers, and Auth0 for AI Agents serves developers building agentic applications. At Oktane 2026 (22–24 Sep, Las Vegas) the company launched Agent SSO, built on its Cross App Access standard, at no extra cost, and added more than 25 new Cross App Access integrations. On 22 Sep 2026 Okta and other vendors formed the Blueprint Alliance, an industry reference architecture for securing AI agents.

Security suite expansion. Okta is moving beyond sign-on into adjacent identity security. It bought Axiom Security (privileged access, closed 4 Sep 2025, about $54m) and Permiso Security (identity threat detection and response, agreement 30 Jul 2026, closed 26 Aug 2026). These feed Okta Privileged Access, Identity Threat Protection and Identity Security Posture Management, while Okta Identity Governance remains the largest new-product contributor.

Go-to-market changes. A revamped channel programme announced in September 2026 shifts most implementation work to partners, freeing Okta to focus on software. Management has flagged about a one-point revenue headwind from this in FY2027 but expects better margins. Follow OKTA price action on ChartsView Live Charts.

8. Peer Comparison

Okta competes with platform vendors that bundle identity into wider suites and with specialist identity-security firms. Market caps below were checked in late September and early October 2026.

Peer	Market cap (Oct 2026)	Key 2025 metric
Microsoft (Entra ID)	~$3.81 trillion (30 Sep 2026)	Fiscal 2026 revenue above $331bn; Entra revenue not disclosed; added Conditional Access and ID Protection for AI agents (Jul–Aug 2026)
Palo Alto Networks (incl. CyberArk)	~$330bn (2 Oct 2026)	Closed ~$25bn CyberArk acquisition 11 Feb 2026; Next-Gen Security ARR $8.1bn (+60%) in fiscal Q3 2026, incl. $1.6bn from CyberArk and Chronosphere
CrowdStrike (Falcon Identity)	~$277bn (early Oct 2026)	Ending ARR $5.25bn (+24%) in Q4 FY2026; identity ARR not separately disclosed
Cisco (Duo)	~$420–435bn (late Sep/early Oct 2026)	Duo named 2026 Gartner Peer Insights Customers’ Choice for user authentication; Duo revenue not disclosed
SailPoint (SAIL)	~$11.2bn (7 Oct 2026)	ARR $1.231bn (+25%) in Q2 FY2027, SaaS ARR +36%
Ping Identity (private, Thoma Bravo)	Private — n/a	Taken private for $2.8bn in 2022 and merged with ForgeRock in 2023; no current figures published

9. Insider Activity

Co-founder and CEO Todd McKinnon remains Okta's largest individual holder, with about 6.5m Class B shares held indirectly through trusts. Form 4 filings show steady selling by senior executives between June and September 2026, largely under pre-arranged Rule 10b5-1 plans, as the share price rose sharply. No open-market purchases occurred in the period; the last insider purchase was director David Schellhase buying 3,712 shares at $72.04 on 16 Apr 2026.

Name	Date	Type	Shares	Price	Value	Plan Type
Todd McKinnon (CEO)	22 Sep 2026	Sale	48,822	~$193.48 avg	~$9.45m	10b5-1 (adopted 8 Apr 2026)
Eric Kelleher (President & COO)	18 Sep 2026	Sale	6,395	~$183.58	~$1.17m	10b5-1 (adopted 12 Jun 2026)
Eric Kelleher (President & COO)	11 Sep 2026	Sale	2,549	$168.55	~$0.43m	Not confirmed
Brett Tighe (CFO)	2 Sep 2026	Sale (incl. 41,251 converted Class B)	80,000	~$160.97 avg	~$12.88m	10b5-1 (adopted 8 Apr 2026)
Todd McKinnon (CEO)	8 Jul 2026	Sale	68,936	~$146.62 avg	~$10.11m	10b5-1 (adopted 8 Apr 2026)
Larissa Schwartz (Chief Legal Officer)	22 Jun 2026	Sale	2,463	$120.00	~$0.30m	10b5-1 (adopted 3 Jul 2025)
Eric Kelleher (President & COO)	18 Jun 2026	Sale	3,977	$114.10	~$0.45m	Not confirmed
Brett Tighe (CFO)	8 Jun 2026	Sale	65,000	$117.25	~$7.62m	Not confirmed
Larissa Schwartz (Chief Legal Officer)	2 Jun 2026	Sale	24,971	$134.13	~$3.35m	Not confirmed

On the company side, Okta repurchased 1,542,442 shares at an average $81.06 ($125m) in Q2 FY2027 under its $1bn programme. Helen Riley joined the board on 18 Sep 2026.

10. Key Risks

• Competitive bundling (Competitive): Microsoft can include Entra ID in Microsoft 365 licences at little marginal cost, and Palo Alto Networks (with CyberArk) and CrowdStrike are building identity into broad security platforms, which could compress Okta's pricing and win rates.
• Security incidents (Operational): as an identity provider Okta is a high-value target; past breaches in 2022 and 2023 damaged trust, and any new compromise could trigger churn and regulatory scrutiny.
• Growth deceleration (Financial): revenue growth has slowed to about 10–11% and net retention to 107%; if AI-agent products do not reaccelerate demand, the valuation premium could compress.
• Seat-based exposure to headcount (Macro): workforce identity is priced per employee, so hiring freezes or layoffs at customers directly reduce renewal values.
• Execution on acquisitions and channel shift (Operational): integrating Axiom and Permiso and moving services to partners carry execution risk and a known revenue headwind in FY2027.
• Dilution from stock-based compensation (Financial): GAAP profitability remains far below non-GAAP because of heavy stock compensation, which buybacks only partly offset.

11. Recent Developments

• 22 Sep 2026 — Oktane 2026 and AI-agent launches. At its Las Vegas conference Okta launched Agent SSO on the Cross App Access standard, expanded Okta for AI Agents, and co-founded the Blueprint Alliance reference architecture for securing AI agents; an investor summit followed on 23 Sep.
• 22 Sep 2026 — CEO share sale. Todd McKinnon sold 48,822 shares at an average of about $193 under a 10b5-1 plan, following a CFO sale of 80,000 shares on 2 Sep.
• 21 Sep 2026 — Channel programme overhaul. Okta unveiled a revamped partner programme that shifts most implementation and service delivery to partners.
• 18 Sep 2026 — Board appointment. Helen Riley was named to Okta's board of directors.
• 26 Aug 2026 — Q2 FY2027 beat and raise. Revenue rose 11% to $805m, non-GAAP EPS was $1.05, RPO grew 17% to $4.86bn and FY2027 guidance was raised to $3.216–3.226bn revenue and $3.90–3.94 non-GAAP EPS; the shares closed up about 27% the next day.
• 26 Aug 2026 — Permiso Security acquisition completed. The identity threat detection and response specialist, announced on 30 Jul 2026, joins Okta's Identity Threat Protection portfolio; terms were not disclosed by Okta.

12. Key Dates

• 31 Oct 2026 — end of fiscal Q3 2027.
• Expected Dec 2026 — Q3 FY2027 results (not yet confirmed by Okta; last year's Q3 report was on 2 Dec 2025). Management guided to revenue of $813–817m and non-GAAP EPS of $0.92–0.94.
• 31 Jan 2027 — end of fiscal year 2027.
• Expected Mar 2027 — Q4 and full-year FY2027 results, with FY2028 guidance.
• 26 Aug 2026 — Q2 FY2027 results released (most recent reported quarter).

Check the ChartsView Economic Calendar for macro releases that move software stocks, and discuss Okta with other investors in the Forum.

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