Okta’s first quarter results drew a positive response from the market, with management crediting growth in large enterprise adoption, increased partner engagement, and broader product traction. CEO Todd McKinnon highlighted significant momentum from both core identity platforms—Okta and Auth0—as well as new offerings in identity governance and privileged access. Management emphasized that new products, including solutions for AI agent identity management, now make up a rising share of bookings, underscoring the company’s ability to adapt to evolving security needs.
Is now the time to buy OKTA? Find out in our full research report (it’s free for active Edge members).
Okta (OKTA) Q1 CY2026 Highlights:
- Revenue: $765 million vs analyst estimates of $751.9 million (11.2% year-on-year growth, 1.7% beat)
- Adjusted EPS: $0.91 vs analyst estimates of $0.85 (6.7% beat)
- Adjusted Operating Income: $191 million vs analyst estimates of $179.5 million (25% margin, 6.4% beat)
- The company slightly lifted its revenue guidance for the full year to $3.20 billion at the midpoint from $3.18 billion
- Management raised its full-year Adjusted EPS guidance to $3.83 at the midpoint, a 1.3% increase
- Operating Margin: 7.3%, up from 5.7% in the same quarter last year
- Annual Recurring Revenue: $3.02 billion (12.3% year-on-year growth, beat)
- Billings: $612 million at quarter end, up 10.9% year on year
- Market Capitalization: $21.67 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Okta’s Q1 Earnings Call
- John DiFucci (Guggenheim): Asked if AI agent identity management is translating to real deployments or just early conversations. CEO Todd McKinnon said most customers are just beginning to formalize governance for AI agents, with Okta’s products well positioned for future adoption.
- Brian Essex (JPMorgan): Questioned whether heightened cybersecurity threats and new AI risks are accelerating spend. McKinnon responded that while there is urgency, purchasing decisions remain focused on strengthening core identity infrastructure, not panic buying.
- Eric Heath (KeyBanc): Inquired about pricing strategies and deal sizes for AI agent products. CFO Brett Tighe explained that AI-related deals are already larger than average, but Okta is pricing for market share and expects models to evolve as the market matures.
- Roger Boyd (UBS): Probed whether Okta’s AI initiatives are influencing broader enterprise deals. McKinnon confirmed that AI conversations are elevating Okta’s strategic relevance and driving cross-sell of additional identity solutions.
- Fatima Boolani (Citi): Asked about the rationale for shifting professional services to partners while peers expand direct services. McKinnon clarified that Okta is focusing internal teams on high-level architectural consulting, while partners provide scale for more routine services.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) customer adoption rates and revenue contribution from Okta’s new AI agent identity products, (2) continued traction in large enterprise and public sector deals, and (3) the effectiveness of Okta’s partner-led services model. Execution on these priorities, along with measurable progress in product integration with key technology partners, will be critical for sustained growth.
Okta currently trades at $120.79, up from $94.72 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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