At Oktane 2026, Okta detailed its AI-agent security strategy as analysts raised targets. Roth Capital said early deals generated a 50%–60% uplift in deal values; management expects AI to remain immaterial in FY2027, with meaningful revenue possibly from FY2028 onward.
In Q2, revenue grew 11%, subscription revenue 12%, and current remaining performance obligations (cRPO) growth accelerated by 2 percentage points to 14%. Management attributed that momentum mainly to large enterprises, an expanding product portfolio and stronger execution—not AI revenue. New products made up about 30% of bookings, led by Identity Governance. Management said AI discussions are prompting customers to consolidate legacy identity products and expand into governance and customer identity.
Stephens raised its price target to $240, and Jefferies expected a more pronounced AI monetization cycle in 2027. BofA said Oktane did not change its investment thesis because the opportunity remains early. The stock traded at roughly 54.4 times forward earnings on Sept. 24. Hedge-fund bullish positions rose to 58 in Q2 from 49; short interest was 8.21 million shares, or 5.49% of the float, on Sept. 15, versus 6.45 million the prior month.
