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Okta Beats Q1 Estimates as Demand for AI-Agent Security Grows

The company raised full‑year guidance and expanded its subscription backlog, signaling stronger enterprise spending to secure agentic AI deployments.

Overview

  • Okta reported adjusted EPS of $0.91 and revenue of $765 million, beating Street estimates after the market close on Thursday.
  • Management raised full‑year fiscal 2027 revenue and EPS guidance and said current remaining performance obligations grew about 12% to roughly $2.5 billion.
  • CEO Todd McKinnon said customer planning for agentic AI is boosting interest in identity controls, though management noted AI‑related sales remain early and not yet a major share of revenue.
  • The results and commentary sent Okta shares sharply higher, producing a new 52‑week high and prompting multiple analysts to lift price targets and outlooks.
  • Investors and analysts pointed to the company’s go‑to‑market changes and that new products made up about 25% of bookings as reasons to watch whether AI‑agent security and cross‑sell will drive sustained revenue acceleration.