Did The Market Read Okta Stock Right?

Okta (OKTA) stock returned 134% in the year to October 5, 2026, against 17.1% for the S&P 500. Okta’s results on May 28 and August 26, 2026 both came with the same message from management: AI agents need identities that are secured. Buyers may be betting on that demand. So how much of Okta’s sales come from AI agents today?

How Much Of Okta’s Sales Come From AI Agents?

Almost none yet. On the August 26, 2026 earnings call, which management says is too small to show up in the numbers right now. Management also said it does not expect AI to be material in fiscal 2027.

Okta did win dozens of AI deals in fiscal Q2 2027, and management said conversations about AI are resulting in deals for its other products. So far, the AI demand appears to be showing up in those other products. Management said bookings in fiscal Q2 2027 were a record for any quarter other than a fourth quarter, and new products made up about 30% of those bookings. Management said Okta Identity Governance was once again the leading contributor.

Okta Now Earns A Profit, But A Thin One

The clearer change in Okta’s accounts is profit. Okta’s operating margin was 7.7% over the past twelve months, up from 3.0% a year ago. Three years ago Okta ran an operating loss equal to 31% of its revenue.

Okta also brings in more cash than its profit suggests. Its operating cash flow was $1.0 billion over the past twelve months, against net income of $0.3 billion. It holds $2.2 billion more cash than debt, and management said on the August call that no convertible debt remains.

Okta’s profit is still thin, though. Its 7.7% operating margin compares with 18.6% for the S&P 500.

Is Okta’s Sales Growth Speeding Up?

Not in its reported revenue. Okta’s revenue was up 10.6% in the latest quarter from a year earlier, against 11.6% three quarters before. For fiscal Q3 2027, management guided to revenue growth of 10%.

Yet investors now value Okta at $38.0 billion, against $3.1 billion of revenue over the past twelve months. Okta stock is priced at 128.5 times earnings, against 21.5 for the S&P 500. The price appears to assume much faster growth than Okta reports today. Management said the open question is how fast its AI pipeline converts into sales.

So buyers appear to have paid for AI sales that Okta’s own management says are not in its numbers yet. Revenue growth back above the 11.6% of three quarters before would be the first sign that Okta’s sales are speeding up.

Does This Mean You Should Act On OKTA?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.