Okta announced AI-agent identity features, including Agent SSO, at Oktane 2026. Q2 FY2027 revenue rose 11% to $805 million, while the company’s FY2027 guidance calls for 10%–11% growth, leaving open whether AI can accelerate sales.
Q2 FY2027 subscription revenue increased 12%, and remaining performance obligations (RPO), which provide contracted-revenue visibility, rose 17% to $4.86 billion. BMO Capital raised its price objective to $230 from $187 after Oktane 2026, saying AI could expand Okta’s addressable market and support growth, wider adoption and new customer wins.
Okta reported 5,255 customers with annual contract value above $100,000 as of July 2026, and dollar-based net retention of 107%. Investors still need evidence that AI products can lift growth beyond the company’s 10%–11% FY2027 forecast. The article also cites subdued AI monetization and competition from Microsoft and other security platforms as risks.
