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Okta Beats Expectations, Boosted by AI Demand
29 May
Summary
- Okta reported $765 million in Q1 revenue, an 11% year-over-year increase.
- The company's adjusted earnings per share reached $0.91, exceeding forecasts.
- AI agents are driving demand for Okta's identity security solutions.
Okta reported first-quarter revenue of $765 million, marking an 11% increase from the previous year and exceeding analyst predictions. The company also surpassed earnings expectations, achieving $0.91 in adjusted earnings per share. This financial success was partly attributed to the growing demand for identity security solutions fueled by the proliferation of AI agents.
CEO Todd McKinnon noted that companies developing AI capabilities are increasingly turning to Okta for identity management. He views this trend as a foundational element for future growth over the next five to ten years. Subscription backlog, representing future revenue, also saw a substantial 16% year-over-year increase to $4.719 billion.
The company anticipates continued revenue growth between $790 million and $794 million for the current quarter. For the full fiscal year 2027, Okta has raised its revenue guidance to a range of $3.185 billion to $3.205 billion. This revised forecast represents a 9% to 10% growth projection, demonstrating confidence in sustained market performance.
