SAN FRANCISCO, May 28, 2026, 14:02 PDT
Okta shares traded higher after reporting stronger-than-expected revenue and profit for the quarter, lifted by demand for its access management products for both people and AI agents. The stock added to gains after the bell, following a 5.8% jump during regular hours, according to MarketWatch.
Okta is betting the new wave of agentic AI, where software acts for users or businesses, could drive fresh demand for security. The report comes as Okta tries to sell investors on a spending cycle. Each AI agent potentially needs its own ID, rules, and access controls — all in Okta’s wheelhouse.
The news hit as cybersecurity stocks were already jittery. Just a day before, Zscaler’s weak forecast dragged its shares lower and weighed on Palo Alto Networks and CrowdStrike. Some analysts called Zscaler’s issues specific to the company, not a sign of trouble for the wider group.
Okta posted first-quarter revenue of $765 million, up 11%, topping the $752 million expected by analysts surveyed by FactSet, according to MarketWatch. Adjusted EPS came in at 91 cents, beating the 85-cent estimate.
GAAP net income came in at $74 million for the company, compared to $62 million in the same period last year. Current remaining performance obligations, or cRPO, climbed 12% to $2.499 billion. That figure measures subscription backlog likely to become revenue over the next year.
Chief Executive Todd McKinnon said “AI agents are rapidly becoming a new workforce,” and said firms will need to secure those non-human identities like they do for employee accounts. Chief Financial Officer Brett Tighe cited stronger large-enterprise demand and improved sales productivity since last year’s go-to-market changes. Business Wire
Okta’s new-product lineup made up 35% of bookings for the quarter, CEO Todd McKinnon told MarketWatch. That number could get extra attention from investors, since it shows newer tools like its identity governance products are picking up more of the growth, and not just acting as add-ons.
Okta said it expects second-quarter revenue of $790 million to $794 million and adjusted earnings of 95 cents to 97 cents per share. For fiscal 2027, Okta lifted its guidance to revenue of $3.185 billion to $3.205 billion with adjusted EPS of $3.79 to $3.87.
Okta is still seeing some pressure. The company said moving professional services to partners will knock about one point off annual revenue growth. Its free-cash-flow outlook also factors in less interest income from stock buybacks and settling the rest of its 2026 notes.
Okta reported $277 million in operating cash flow and $271 million in free cash flow for the quarter. The company spent $248 million on buybacks, with management giving money back to shareholders as spending continues on AI agents.
Okta shares traded at $94.72, up 5.8% from their last close and hitting an intraday high of $100.60, market data showed. The stock added more than 1% in after-hours action to $96.10, Investor’s Business Daily said.
