Okta Inc. reported third‑quarter fiscal 2026 revenue of $742 million, up 12% year‑over‑year, and adjusted earnings per share of $0.82, both surpassing consensus estimates of $730 million and $0.75 respectively. The revenue beat was driven by an 11% rise in subscription revenue to $724 million, reflecting robust demand from large enterprise customers and the adoption of new identity‑governance and AI‑agent security solutions.
The company’s adjusted operating income rose to $178 million, giving a non‑GAAP operating margin of 24%, an improvement over the 22% margin reported in the prior year. The margin expansion was largely attributable to higher mix of high‑margin AI‑enabled contracts and disciplined cost management, offsetting modest increases in support and professional services costs.
Okta lifted its full‑year revenue outlook to $2.91 billion, up from the previous $2.89 billion estimate, and raised its adjusted EPS guidance to $3.43–$3.44 from $3.33–$3.38. Management cited continued strength in core identity services and momentum in AI‑security offerings as the basis for the upward revision, signaling confidence in sustained growth momentum.
CEO Todd McKinnon highlighted that the quarter’s performance was driven by “continued strength with large customers” and the launch of Auth0 for AI agents, positioning Okta to secure the emerging AI‑technology transformation. He emphasized that the company’s neutral identity platform is key to protecting AI agents, underscoring a strategic focus on AI security.
Analysts noted that while the earnings beat was solid, the market reaction was tempered by sector‑wide valuation concerns and a perception that the company’s remaining performance‑obligation guidance for the next quarter was slightly disappointing. The mixed reaction reflects investors’ focus on forward‑looking metrics and the competitive dynamics within the cybersecurity space.
Overall, Okta’s Q3 results demonstrate strong execution, margin resilience, and a clear strategic emphasis on AI‑enabled identity solutions, while the company’s guidance signals confidence in continued growth amid a competitive and valuation‑conscious market.
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