# Okta (OKTA)

Sector: Identity security software

| Field | Value |
|---|---|
| Price | $182.25 |
| Market cap | $32B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-12 |
| Next earnings | 2026-12-01 (estimate) |

Analysts: Bullish

Picks: Research only

Discount category: Close to intrinsic value

## In short

Investors pay more than the AI estimate for the place of Okta in securing AI agents, and only several years of faster growth with rising free cash flow can earn this price.

## Themes and gap

- Themes: AI disruption risk (ai-disruption)
- Gap type: Slow (slow)
- Why: The Q3 fiscal 2027 report in December 2026 and the fiscal 2028 outlook in early 2027 show whether growth and cash flow can support the price, but it needs several years of faster growth.

## About

Okta, Inc. (Okta) is an identity company based in San Francisco, California. It sells software that controls who can sign in to applications and what they can access. It has two businesses. Workforce identity serves the employees of its clients. Customer identity, which includes Auth0, serves the customers and partners of its clients. Okta also sells products that find AI agents, secure their connections and govern their actions. Revenue was $805 million in Q2 of fiscal 2027, which ended on July 31, 2026, and $1,570 million for six months. Subscription revenue was $793 million in Q2. Okta had 5,255 customers with annual contract value above $100,000 at July 31, 2026. Todd McKinnon is Chief Executive Officer and a co-founder. Brett Tighe is Chief Financial Officer. The fiscal year of Okta ends on January 31. The Class A common stock trades on Nasdaq in US dollars. Okta files 10-K and 10-Q reports.

## Thesis

The price of Okta depends on whether AI agents make identity a larger and faster growing market for a neutral vendor. Okta says that every AI agent needs a trusted identity, and it sells products to find agents, secure their connections and govern their actions. In Q2 of fiscal 2027, revenue rose 11%, current remaining performance obligations rose 14%, and free cash flow was $227 million, which is 28% of revenue. Guidance for fiscal 2027 is revenue growth of 10% to 11% and a free cash flow margin of 28% to 29%. Investors pay for faster growth than this. For the price to hold or rise, four things must be true. Current remaining performance obligations must grow faster than the 11% to 12% that Okta guides for Q3. New products such as Okta Identity Governance must keep adding to growth. The dollar-based net retention rate, which was 107%, must rise. Free cash flow must stay near 28% of revenue while interest income falls and Okta buys back shares. The Q3 report in early December 2026 and the Q4 report with the fiscal 2028 outlook in early 2027 are the next tests. If growth speeds up, the price can hold. If competitors bundle identity into larger products, or if a security incident harms trust, the price can fall.

## Checkpoints

- Dec 1, 2026 (estimate): Q3 fiscal 2027 results. Status: Pending. Watch: Revenue and current remaining performance obligations meet or beat the guidance of $813 million to $817 million and $2.590 billion to $2.600 billion, and this passes; a miss on either fails.
- Mar 2027 (estimate): Q4 fiscal 2027 results and fiscal 2028 outlook. Status: Pending. Watch: The outlook for fiscal 2028 shows revenue growth of 10% or more and a free cash flow margin near 28%, and this passes; slower growth or a lower margin fails.

## Balance sheet

- Cash: $2.3B
- Debt: $0.0M
- Net cash: $2.3B

At July 31, 2026, Okta had cash and cash equivalents of $763 million and short-term investments of $1,536 million, which is $2,299 million in all. It has no debt. It paid the remaining $350 million of its 2026 convertible notes in cash in June 2026. Non-current operating lease liabilities were $53 million. Deferred revenue was $1,781 million, of which $30 million is non-current. Free cash flow was $498 million for six months. Okta repurchased shares for $366 million in six months, and $555 million remained under its $1 billion program. Total stockholders' equity was $6,973 million.

As of 2026-07-31.

Sources:

- https://www.sec.gov/Archives/edgar/data/1660134/000166013426000068/okta-7312026_ex991.htm
- https://www.sec.gov/Archives/edgar/data/1660134/000166013426000069/okta-20260731.htm

## Dividends

Okta does not pay a dividend.

Source: company filings and market data, read on 2026-11-13.

## Recent events

- 2026-09-14: Emilie Choi resigned from the board of directors of Okta. Okta said in an 8-K that her resignation was not the result of a disagreement on operations, policies or practices.
- 2026-08-27: Okta filed its Form 10-Q. It repurchased and retired 4,569,262 shares of Class A common stock for $366 million in six months under its $1 billion program, and $555 million of the program remained at July 31, 2026.
- 2026-08-26: Okta reported Q2 fiscal 2027 results. Revenue rose 11% to $805 million, and subscription revenue rose 12% to $793 million. Current remaining performance obligations rose 14% to $2.585 billion. Non-GAAP operating income was $226 million, which is 28% of revenue. Free cash flow was $227 million. Okta guided fiscal 2027 revenue to $3.216 billion to $3.226 billion and non-GAAP earnings per share to $3.90 to $3.94.
- 2026-06-18: Stockholders of Okta approved an amendment to the 2017 Equity Incentive Plan. The amendment removes the yearly automatic increase in the shares reserved for the plan.
- 2026-06-15: The 2026 convertible notes of Okta matured. Okta paid the remaining principal of $350 million in cash, so it has no debt.
- 2026-05-28: Okta reported Q1 fiscal 2027 results. Revenue rose 11% to $765 million, and current remaining performance obligations rose 12% to $2.499 billion. Free cash flow was $271 million, which is 35% of revenue.

## Latest news and filings

- Last earnings: 2026-08-26 (8-K: https://www.sec.gov/Archives/edgar/data/1660134/000166013426000068/)
- Next earnings: 2026-12-01 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-09-18 | 8-K | Change of directors or officers |  | okta-20260914 | https://www.sec.gov/Archives/edgar/data/1660134/000166013426000072/okta-20260914.htm |
| 2026-08-27 | 10-Q | Quarterly report for the period ended Jul 31, 2026 | 2026-07-31 | okta-20260731 | https://www.sec.gov/Archives/edgar/data/1660134/000166013426000069/okta-20260731.htm |
| 2026-08-26 | 8-K | Earnings release |  | okta-20260826 | https://www.sec.gov/Archives/edgar/data/1660134/000166013426000068/ |
| 2026-06-23 | 8-K | Change of directors or officers and Shareholder vote results |  | okta-20260618 | https://www.sec.gov/Archives/edgar/data/1660134/000166013426000054/okta-20260618.htm |
| 2026-05-29 | 10-Q | Quarterly report for the period ended Apr 30, 2026 | 2026-04-30 | okta-20260430 | https://www.sec.gov/Archives/edgar/data/1660134/000166013426000051/okta-20260430.htm |
| 2026-05-28 | 8-K | Earnings release and Investor disclosure |  | okta-20260528 | https://www.sec.gov/Archives/edgar/data/1660134/000166013426000050/ |
| 2026-04-22 | 8-K | Change of directors or officers |  |  | https://www.sec.gov/Archives/edgar/data/1660134/000119312526170498/d118360d8k.htm |
| 2026-03-23 | 8-K | Change of directors or officers |  | okta-20260319 | https://www.sec.gov/Archives/edgar/data/1660134/000166013426000029/okta-20260319.htm |
| 2026-03-11 | 8-K | Change of directors or officers |  | okta-20260305 | https://www.sec.gov/Archives/edgar/data/1660134/000166013426000024/okta-20260305.htm |
| 2026-03-05 | 10-K | Annual report for the period ended Jan 31, 2026 | 2026-01-31 | okta-20260131 | https://www.sec.gov/Archives/edgar/data/1660134/000166013426000020/okta-20260131.htm |

Every filing on SEC EDGAR (CIK 1660134): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001660134&type=&dateb=&owner=include&count=40

## Risks

- High: AI can change the identity market. Okta expects that AI agents need identity from a neutral vendor. If competitors bundle identity into larger products, or if agents use other methods, growth can slow. Revenue growth was 11% in Q2 of fiscal 2027.
- Medium: A security incident can harm trust. Okta says in its 10-Q that it had incidents in January 2022, at a third-party provider, and in October 2023, when a threat actor reached its customer support system.
- Medium: Stock-based compensation is large. It was $231 million for six months, which is 15% of revenue, and the non-GAAP results leave it out. Taxes paid on net share settlement of equity awards were $100 million in the same period.
- Medium: Interest income is falling. Okta paid $350 million of notes in cash and uses cash for buybacks. Okta says that this lowers the free cash flow margin by about 1 point in fiscal 2027.
- Low: Okta moves professional services to partners. This lowers revenue growth by about 1 point in fiscal 2027.

## Links

- Page: https://picks.utilarium.app/company/OKTA/
- History of changes: https://picks.utilarium.app/company/OKTA/history/
- JSON with full history: https://picks.utilarium.app/data/company/OKTA.json

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