Track market-moving stories before they get noisy

Shares of Okta (OKTA -1.76%) soared in August, gaining 21.9%, according to data supplied by S&P Global Market Intelligence. That's more than eight times the 2.6% gains of the S&P 500 during the same period.

It turns out the threat of artificial intelligence (AI) to the cybersecurity sector wasn't as bad as some feared.

Image source: Getty Images.

What SaaSpocalypse? Earlier this year, software-as-a-service (SaaS) stocks took a beating, thanks to fears that some investors called the "SaaSpocalypse." The crux of the popular narrative was that AI agents would take over many of the jobs currently handled by SaaS offerings, rendering them obsolete. The ensuing frenzy took down a broad range of cybersecurity stocks, and Okta wasn't spared, losing 27% of its value between early January and early April.

While the jury was still out, patient investors kept their heads, which was a profitable decision. For its fiscal 2027 second quarter (ended July 31), Okta reported results that confirmed what astute investors already knew. Revenue of $805 million rose 11% year over year, driven higher by subscription revenue of $793 million, up 12%. The company's adjusted gross margin held steady at 82%, and adjusted earnings per share (EPS) of $1.05 rose 15%. This was well ahead of analysts' consensus estimates of revenue of $793 million and adjusted EPS of $0.97.

Okta turned a greater percentage of profits into greenbacks. Operating cash flow of $234 million jumped 40%, while free cash flow of $227 million also increased 40%.

Premium Feature

Moneyball Superscore

80/100

Today's Change

(

-1.76

%) $

-3.01

Current Price

$

167.60

Other metrics were equally robust. Okta's remaining performance obligation (RPO) -- or contractually obligated revenue that hasn't yet been recognized -- climbed 17% to $4.86 billion, while current RPO (which will be recognized within 12 months) jumped 14% to $2.59 million. This was far from the SaaSpocalypse-related rout investors had anticipated.

CEO Todd McKinnon explained, "As AI agents transform every layer of technology, every agent needs a trusted identity and clear controls over what it can access and do." Far from being displaced by AI, Okta is becoming an integral part of the process.

Management's forecast also gave investors confidence, as Okta's outlook called for revenue of $815 million and adjusted EPS of $0.93, up 10% and 13%, respectively. The company is also guiding for current RPO of roughly $2.6 billion, up nearly 12% year over year. It's generally a positive sign when RPO growth outpaces revenue, as it indicates the company is building a solid foundation for future growth.

Okta's recovery has caused a commensurate rebound in its valuation. The stock now sells for 53 times forward earnings and 38 times next year's expected earnings -- so it isn't exactly cheap. However, with the SaaSpocalypse seemingly put to rest, the future looks bright for Okta.

Brett Tighe, Chief Financial Officer of Okta, Inc. (OKTA +0.11%), sold 80,000 shares of Class A Common Stock on September 2, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueShares sold80,000Shares sold (directly held)38,749Shares sold (indirectly held)41,251Transaction value$12.9 millionPost-transaction shares (directly held)82,046Post-transaction shares (indirectly held)7,693Post-transaction value$14.64 millionInsider ownership0.0540%Transaction value based on SEC Form 4 weighted average sale price ($160.97); post-transaction value based on September 02, 2026 market close ($163.15).

Key questionsWhat prompted this disposition of Class A Common Stock?
The sale was conducted pursuant to a Rule 10b5-1 trading plan established by Brett Tighe on April 8, 2026. The plan allows corporate insiders to schedule share sales in advance to satisfy liquidity needs while maintaining compliance with insider trading laws.How has the stock performed leading up to this filing?
The shares were sold at a weighted average price of $160.97, following a period where Okta generated an 82% return over the 12 months ending on the September 2, 2026 transaction date.What is the status of the executive's remaining equity position?
After this transaction, Brett Tighe continues to hold 82,046 shares directly and 7,693 shares indirectly through a trust, and the filing also reports 50,808 direct derivative securities and 27,795 indirect derivative securities.How does this disposition affect the insider's ownership percentage?
The Chief Financial Officer now maintains a direct and indirect ownership interest of 0.0540% in the company.Company OverviewMetricValueShare Price (as of market close 2026-09-04)$170.60Market Capitalization$28.4 billionRevenue (TTM)$3.1 billionNet Income (TTM)$296.0 millionCompany SnapshotOkta delivers comprehensive identity management solutions through its flagship Okta Identity Cloud platform, which includes integrated products such as authentication services, generating revenue primarily through subscription-based licensing and professional services.The company operates a cloud-based software-as-a-service (SaaS) business model, monetizing its identity infrastructure platform through recurring subscription fees from enterprise and mid-market customers seeking secure access management solutions.Okta serves a diverse customer base spanning large corporations, small and medium-sized businesses, educational institutions, charitable organizations, and governmental bodies across both domestic and international markets.Okta, Inc. is a leading provider of identity and access management solutions with trailing 12-month revenue of $3.1 billion, reflecting strong demand for cloud-based security infrastructure. The company's Okta Identity Cloud platform represents a comprehensive, integrated approach to identity management, positioning the organization as a critical infrastructure provider for enterprises navigating digital transformation and heightened security requirements.

With a global customer base, Okta has established itself as a market leader in the identity management sector, benefiting from secular trends toward cloud adoption and the increasing criticality of identity security in enterprise IT environments.

What this transaction means for investorsCFO Brett Tighe's September 2 sale of Okta stock for a weighted average price of $160.97 took place just days after shares reached a 52-week high of $174.85 on Aug. 27. The timing was fortuitous, since Tighe's disposition was a non-discretionary transaction executed as part of a pre-arranged Rule 10b5-1 plan.

While the disposal represented a significant 47% of his equity stake, it involved the conversion of 41,251 shares of Class B Common Stock into Class A and immediate sale of those shares. This action is a common approach taken by executives as part of a structured liquidity strategy, since they hold so many shares.

In fact, post-transaction, Tighe retained nearly 80,000 direct and indirect derivative securities in addition to 82,046 directly held Class A shares and 7,693 indirectly held Class A shares in a trust. Combined, this is a substantial equity position, although future sales of this size could begin to raise investor concern.

Okta stock is up thanks to strong business performance. The company exited its fiscal second quarter, ended July 31, with $805 million in sales, representing 11% year-over-year growth.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Okta (OKTA - Free Report) Okta, Inc.’s cloud-based identity solutions allow customers to integrate with nearly any application, service or cloud that they choose through its secure, reliable, and scalable platforms: Okta Platform and Auth0 Platform. Okta AI Suite is infused into several products available on these two platforms.

OKTA is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. OKTA has a Momentum Style Score of A, and shares are up 18.8% over the past four weeks.

For fiscal 2027, 15 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.08 to $3.91 per share. OKTA boasts an average earnings surprise of +7.9%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, OKTA should be on investors' short list.

Key Takeaways Okta is expanding AI security for agents and non-human identities as enterprise demand grows.New products drove about 30% of fiscal Q2 2027 bookings, with roughly 40% average ACV uplift.Okta is expanding through AI-agent deals, acquisitions and partnerships amid tougher competition. Okta (OKTA - Free Report) is benefiting from growing enterprise demand for Artificial Intelligence (AI) security and an expanding identity-security portfolio. The company is extending its platform beyond employees and customers to AI agents and other non-human identities as enterprises rapidly deploy agentic applications. Okta’s offerings include Okta for AI Agents, Auth0 for AI Agents, Identity Threat Protection, Identity Security Posture Management, Privileged Access and Fine-Grained Authorization. These capabilities strengthen Okta’s position against broader security competitors, including CrowdStrike (CRWD - Free Report) and Microsoft (MSFT - Free Report) .

New-product adoption is already supporting bookings and customer spending. In the second quarter of fiscal 2027, newer products accounted for roughly 30% of bookings, led by Okta Identity Governance. Deals incorporating new products generated an average annual contract value (ACV) growth of about 40%. Okta closed dozens of AI-agent deals, including several million-dollar-plus transactions. OKTA noted that AI-related deal sizes remain above the company-wide average, although AI contributions are still too small to materially affect overall revenues.

Rapid AI-agent proliferation could support further demand. In one customer evaluation, Okta initially detected roughly 50 Claude-agent instances, but the number increased to around 1,500 within a few weeks. Such rapid proliferation increases enterprises’ need to discover, govern and secure agents. Okta has already secured a multimillion-dollar AI Agents deal with a Fortune 50 healthcare company, while a global consulting firm selected the platform after considering an internal build. One of the world’s largest asset managers selected Okta to govern thousands of agents from multiple vendors, highlighting the appeal of its vendor-neutral architecture.

Okta is strengthening its capabilities through acquisitions and public-sector expansion. The Permiso acquisition adds a cloud-native platform that detects threats across human, non-human and agentic identities. The company said Permiso brings around 400 native risk detections compared with roughly 90 in Okta’s existing Identity Threat Protection offering, potentially strengthening post-authentication monitoring and runtime security. Okta for AI Agents-Core extends AI-agent governance into FedRAMP and Health Insurance Portability and Accountability Act (HIPAA) environments, while Impact Level 5 authorization expands opportunities with the U.S. Department of Defense as agencies work toward the 2027 Zero Trust mandate. Public sector currently represents less than 10% of Okta’s business, leaving room for further growth.

Okta’s ecosystem provides another advantage. Anthropic named Okta the first identity provider supporting Enterprise Managed Auth for Model Context Protocol connectors, while the company has expanded relationships with Amazon Web Services, Cisco, OpenAI, Databricks and Snowflake and added more than 25 Cross-App Access integrations. These partnerships should help enterprises secure agents across heterogeneous applications and clouds while supporting cross-selling and broader platform adoption.

OKTA Faces Tough CompetitionMicrosoft and CrowdStrike are intensifying competitive pressure. Microsoft’s E7 suite combines Copilot, E5, Entra and Agent 365, attracting hundreds of enterprise customers and millions of seats within two months, including a 400,000-employee deployment at EY. Agent 365 has nearly 40 million agents registered, while Purview has audited more than 50 billion Copilot interactions. Project Perception further combines Entra, Defender, network and application-security signals to automate attack simulation, investigation and remediation.

CrowdStrike reported in the second quarter of fiscal 2027 that AI Detection and Response (AIDR) annual recurring revenues (ARR) nearly tripled sequentially, identity ARR rose 34% to more than $585 million and Falcon Shield ARR surged more than 185%. Privileged-account security ARR increased more than 35-fold, while Signal provides granular access controls for human and non-human identities. Falcon Flex also generates more than 40% average ARR uplift when customers migrate from standard subscriptions, strengthening CrowdStrike’s ability to bundle endpoint, cloud, identity, SIEM and AI security into a broader platform offering.

OKTA’s Share Price Performance, Valuation & EstimatesShares of Okta have appreciated 92.3% year to date, outperforming the broader Zacks Computer and Technology sector’s 17.1% growth.

OKTA Stock’s Price Performance
Image Source: Zacks Investment Research

OKTA stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 40.46X compared with the broader sector’s 20.76X. Okta has a Value Score of F.

OKTA’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Okta’s earnings is currently pegged at 93 cents per share, unchanged over the past 30 days, suggesting 13.41% growth.

Okta currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Okta and CrowdStrike both crushed earnings, but one stock is surging nearly twice as hard as the other despite posting slower growth and a troubling dip in a key bookings metric.

Cybersecurity stocks are outrunning the broad market Thursday after twin fiscal Q2 2027 earnings beats from Okta and CrowdStrike reported Wednesday after the close. The First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR) is up 3% to $96.20 in early Thursday trading. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.3% to $768.17, a fraction of the sector’s move.

Okta (NASDAQ:OKTA | OKTA Price Prediction) stock is surging 22% to $163.98 after fiscal Q2 2027 results reframed the identity leader as the security layer for AI agents. Meanwhile, CrowdStrike Holdings (NASDAQ:CRWD) stock is climbing 13% to $213.70 following its own beat-and-raise report. Okta stock was up 55% year to date through Wednesday’s close, and CrowdStrike stock was up 61% over the same period.

Peers Palo Alto Networks (NASDAQ:PANW) and Fortinet (NASDAQ:FTNT) are riding the read-through as the platform trade in cybersecurity gets fresh validation. Palo Alto Networks stock is up 5% to $356.17, and Fortinet stock is up 1% to $159.51. Both names sit among CIBR’s largest disclosed cybersecurity-focused positions alongside CrowdStrike.

Twin Beat and Raise Reports Drive the Rally Okta reported revenue of $805 million, up 11% year over year, and adjusted EPS of $1.05 topped consensus. CEO Todd McKinnon stated, “As AI agents transform every layer of technology, every agent needs a trusted identity and clear controls over what it can access and do.”

CrowdStrike posted revenue of $1.47 billion, up 26% year over year, with adjusted EPS of $0.31 clearing estimates. CrowdStrike raised its full-year net new ARR growth outlook by 630 basis points, and CEO George Kurtz declared, “Q2 was the best quarter in CrowdStrike’s history. Delivering record Falcon Flex results, record net new ARR, and accelerating growth, the Falcon is soaring.”

Why Okta Is Moving Twice as Hard CrowdStrike posted the faster growth and larger guidance raise, yet Okta stock is climbing nearly twice as much Thursday morning. Okta had lagged the group heading into the report, slipping 2% over the trailing month through Wednesday’s close, while CrowdStrike stock had gained 5% over that same stretch. That setup created a sharper snapback when the identity thesis received fresh AI-agent fuel.

The re-rating reflects growing appreciation for the agentic identity category McKinnon has been building. Speaking with CNBC, McKinnon added, “Network is the biggest cyber category now, but if you look out five or 10 years, with millions of agents running around, it’s definitely going to be identity.” Okta also closed its purchase of threat detection startup Permiso Security in a deal worth around $200 million.

CrowdStrike was already priced for excellence entering the report, carrying a market cap near $188.7 billion versus Okta’s $22.9 billion. Wall Street’s average price target sits at $210.53 for CrowdStrike and $146.34 for Okta, meaning both stocks are pushing past those consensus levels Thursday morning. That valuation gap helps explain why the same beat-and-raise pattern is producing very different reactions.

The blemish worth naming: Okta’s billings came in at $681.2 million, down 5.4% year over year, a gap between headline strength and underlying bookings that will draw questions on the call. Okta’s raised full-year revenue range still implies growth in the low double digits, well under CrowdStrike’s revenue pace and net new ARR trajectory.

What to Watch Investors can watch for whether Okta stock holds Thursday’s rally into next week, as the billings soft spot will bump up against the AI-agent narrative in follow-up analyst notes. Traders could look for signs that the read-through extends to Palo Alto Networks and Fortinet as the cybersecurity platform trade absorbs the twin reports.

CrowdStrike generated free cash flow of $377.4 million in the quarter, and Okta produced $227 million in free cash flow versus $162 million a year earlier. Both companies are pairing accelerating fundamentals with expanding cash generation, which keeps the cybersecurity platform trade a favored destination for growth capital.

The cybersecurity ETF was up 31% year to date through Wednesday’s close, well ahead of the SPDR S&P 500 ETF’s 12% year-to-date gain. Investors should size their positions with that stretch in mind, since much of the beat-and-raise setup is now reflected in prices. Even the bulls may want to leave room for guidance revisions and follow-on analyst commentary to drive the next leg.

Contact [email protected] for any questions or corrections.

Okta Inc. (NASDAQ:OKTA) on Wednesday posted upbeat second-quarter results.

Okta reported quarterly earnings of $1.05 per share, which beat the analyst consensus estimate of 97 cents, according to Benzinga Pro data. Quarterly revenue came in at $805 million, which beat the consensus estimate of $795.12 million and was up from $728 million in the same period last year. 

"As AI agents transform every layer of technology, every agent needs a trusted identity and clear controls over what it can access and do," said Todd McKinnon, CEO of Okta.

Okta raised its fiscal 2027 adjusted EPS guidance to a new range of $3.90 to $3.94, versus the $3.84 analyst estimate, and raised its fiscal revenue outlook to $3.22 billion to $3.23 billion, versus the $3.2 billion estimate.

Okta shares jumped 19.9% to trade at $161.13 on Thursday.

These analysts made changes to their price targets on Okta following earnings announcement.

Needham analyst Mike Cikos maintained the stock with a Buy and raised the price target from $140 to $200.Cantor Fitzgerald analyst Jonathan Ruykhaver maintained the stock with an Overweight rating and raised the price target from $170 to $200.Evercore ISI Group analyst Peter Levine maintained the stock with an Outperform rating and raised the price target from $130 to $185.Keybanc analyst Eric Heath maintained the stock with an Overweight rating and raised the price target from $180 to $190.Truist Securities analyst Junaid Siddiqui reiterated the stock with a Buy and raised the price target from $165 to $200.Trending

DA Davidson analyst Rudy Kessinger maintained the stock with a Buy and raised the price target from $165 to $190.Morgan Stanley analyst Simeon Gutman maintained the stock with an Overweight rating and raised the price target from $180 to $200.Guggenheim analyst John Difucci maintained the stock with a Buy and raised the price target from $162 to $188.Considering buying OKTA stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

The Trump administration may impose new tariffs on semiconductors, potentially impacting a broad range of tech products and complicating U.S. AI ambitions. Okta (OKTA) rallies on strong Q2 results and raised full-year guidance, highlighting robust demand for its security solutions.

Okta Inc OKTA shares climbed to a new year-to-date high on Thursday morning after the identity security company posted a blockbuster Q2 and raised its guidance for the full year.

The upbeat release prompted a fresh wave of bullish analyst calls, with RBC raising its price target for OKTA to $195 and Citizens lifting it to $180 per share.

These upgrades suggest Wall Street believes OKTA stock is poised for more than a one-day post-earnings pop even though it’s already trading at nearly twice the price at which it started 2026.  

The most important takeaway from Okta's second-quarter report may not be its headline revenue beat, but the evidence that demand is broadening across its platform.

Revenue climbed 11% year-on-year to $805 million while adjusted earnings came in at $1.05 per share (EPS) – both handily above Street estimates.

More importantly, current remaining performance obligations (cRPOs) soared about 14% to $2.56 billion. RBC specifically pointed to this acceleration and record bookings as reasons for raising its price target.

OKTA’s bookings strength was driven primarily by large enterprise deals, improved sales execution and growing adoption of newer products.

Management said the firm’s new products accounted for roughly 30% of Q2 bookings, with Identity Governance the leading contributor.

Crucially, Okta Inc said deals involving new products generate an average 40% increase in annual contract value, suggesting the opportunity isn’t simply about winning more clients but expanding the value of existing relationships.

A bigger opportunity for Okta may be emerging as artificial intelligence (AI) changes the definition of an enterprise identity.

Companies are increasingly deploying sophisticated AI agents that can access applications, data and other systems, creating a new security problem – they need to know which agents exist, what they can access and what actions they are permitted to take.

OKTA is positioning itself as a neutral identity layer capable of governing those interactions across different platforms and cloud environments.

That strategy is already moving beyond the concept stage. Okta Inc launched products designed to secure and govern AI agents, while its Agent Gateway is intended to enforce policies at runtime across multiple platforms.

Management said the company won dozens of AI deals in Q2 – including a “multimillion-dollar” agreement with a Fortune 50 healthcare company.

The acquisition of Permiso Security, announced in July, should further strengthen Okta’s ability to detect and respond to identity threats involving human, non-human and agentic identities.

This is central to analysts’ bullish thesis for OKTA shares: AI could become a catalyst not only for a new product category but also for broader identity modernization.

Okta Inc says conversations that begin around securing AI are increasingly expanding into wider identity projects, potentially giving the firm more opportunities to cross-sell its existing platform.

Should you buy Okta Inc into post-earnings strength today?OKTA’s stronger quarter also gave management room to raise its fiscal 2027 outlook across key metrics.

The company now expects full-year revenue of $3.216 billion to $3.226 billion, and projects EPS (adjusted) of $3.90 to $3.94 with free cash flow of at least $ 910 million.

Citizens’ decision to raise its target to $180 reflects its view that the quarter established a credible path toward durable growth reacceleration.

The investment firm expects continued cRPO acceleration, evidence that new products can sustain higher contract values, further enterprise wins, and tangible monetization of AI-agent security to drive OKTA stock higher.

Okta’s ability to convert those opportunities into faster revenue growth while maintaining strong cash generation will determine whether the stock can turn its latest breakout into a sustained move toward the $180-$195 analyst targets.

Key Takeaways Okta's Q2 revenues rose 10.6% to $805 million, while subscription revenues climbed 12% to $793 million. OKTA's subscription backlog rose 17% to $4.858 billion, while cRPO advanced 14% to $2.585 billion. Okta raised fiscal 2027 revenue guidance to $3.216-$3.226 billion and EPS to $3.90-$3.94. Okta (OKTA - Free Report) reported second-quarter fiscal 2027 earnings of $1.05 per share, which increased 15.4% year over year and beat the Zacks Consensus Estimate by 9.38%.

Revenues increased 10.6% year over year to $805 million, beating the consensus mark by 1.62%. Subscription momentum supported the quarter, with subscription revenues rising 12% to $793 million.

Location-wise, revenues from the United States contributed 87.6% to total revenues in the fiscal second quarter. The figure increased 10.19% year over year to $638 million. International revenues contributed 22.9% to total revenues. The figure increased 12.08% year over year to $167 million.

OKTA's Subscription Growth Supports the Top LineSubscription revenues accounted for nearly all of the top line, while Professional services and other revenues were $12 million, down 29.4% year over year from $17 million. Management said growth benefited from steady momentum across its core Workforce and Customer Identity businesses and contributions from newer products, led by Okta Identity Governance.

Workforce Identity represented 59% of annual contract value, or ACV, at quarter-end and grew 11% year over year. Customer Identity accounted for the remaining 41% and increased 13%, underscoring balanced growth across Okta’s two core identity businesses.

Okta's Backlog and Large Customers ExpandIn the second quarter of fiscal 2027, remaining performance obligations, which represent subscription backlog, increased 17% year over year to $4.858 billion. Current remaining performance obligations (cRPO), a key indicator of future subscription revenues, advanced 14% year over year to $2.585 billion.

Customers generating more than $100,000 in ACV increased 6% year over year to 5,255. The trailing-12-month dollar-based net retention rate was 107%, up one percentage point from the year-ago period, reflecting expansion within the existing customer base after accounting for contractions and churn.

OKTA's Profitability Shows Operating LeverageNon-GAAP gross margin was 81.9%, up 40 basis points year over year, while non-GAAP subscription gross margin improved 20 basis points to 83.9%.

On a non-GAAP basis, operating expenses increased 10.7% year over year to $434 million. Research and development expenses rose 16.5% to $127 million, while sales and marketing expenses increased 17.6% to $241 million. General and administrative expenses declined 15.4% to $66 million.

Non-GAAP operating income increased 11.9% year over year to $226 million. Non-GAAP operating margin expanded 50 basis points to 28.2%, highlighting continued profitability despite growth investments.

Okta's Cash Generation Remains StrongOkta ended July 31, 2026, with $2.299 billion in cash, cash equivalents and short-term investments compared with $2.589 billion as of April 30, 2026.

Net cash provided by operating activities was $234 million, representing 29% of revenues, compared with $167 million, or 23%, a year ago. Free cash flow increased to $227 million from $162 million, while the free cash flow margin expanded to 28% from 22%.

OKTA Raises Its Fiscal 2027 OutlookFor the third quarter of fiscal 2027, OKTA expects revenues of $813-$817 million, implying 10% year-over-year growth. cRPO is projected at $2.59-$2.60 billion, implying growth of 11-12%. Non-GAAP earnings are expected between 92 cents and 94 cents per share, with free cash flow of $175-$185 million.

For fiscal 2027, management raised its revenue outlook to $3.216-$3.226 billion, suggesting 10-11% growth, from the prior $3.185-$3.205 billion range. Non-GAAP earnings are now projected at $3.90-$3.94 per share compared with the previous $3.79-$3.87 range. Free cash flow guidance increased to $910-$930 million from $855-$885 million, with an expected margin of 28-29%.

OKTA’s Zacks Rank & Other Stocks to ConsiderOkta currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector include Dell Technologies (DELL - Free Report) , Docusign (DOCU - Free Report) and Hewlett-Packard (HPE - Free Report) . While Dell Technologies sports a Zacks Rank #1 (Strong Buy), Docusign and Hewlett-Packard carry a Zacks Rank of 2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dell Technologies shares have gained 268.4% in the year-to-date period. Dell Technologies is set to report second-quarter fiscal 2027 results on Sept. 1.

Shares of Docusign have plunged 13.3% year to date. Docusign is set to report second-quarter fiscal 2027 results on Sept. 3.

Shares of Hewlett-Packard have rallied 129.9% year to date. Hewlett-Packard is slated to report fiscal third-quarter 2026 results on Sept. 2.

Shares of Okta (OKTA -3.86%) soared on Thursday after the identity management leader delivered strong quarterly profits.

Image source: Getty Images.

Guarding AI agents AI agents have the potential to automate huge swaths of the economy, boosting productivity and slashing costs along the way. Yet AI agents also pose a dangerous threat to digital infrastructure and traditional data protection systems.

High-profile breaches -- such as when OpenAI's models compromised parts of Hugging Face's systems -- are driving businesses to spend more on cybersecurity solutions. Okta, as a leading provider of identity and access management tools, is benefiting from this trend.

Premium Feature

Moneyball Superscore

80/100

Today's Change

(

-3.86

%) $

-6.68

Current Price

$

166.23

Okta's total revenue rose 11% year over year to $805 million in its fiscal 2027 second quarter, which ended on July 31.

"As AI agents transform every layer of technology, every agent needs a trusted identity and clear controls over what it can access and do," CEO Todd McKinnon said. "Okta helps organizations discover agents, secure their connections, govern their actions, and respond when something goes wrong, giving them the flexibility and control they need to deploy agents safely and at scale."

It's a lucrative position to hold. Okta's adjusted net income jumped 15% to $194 million, or $1.05 per share. The cyber guardian also generated $227 million in free cash flow, placing its FCF margin at an impressive 28%.

Demand continues to rise Okta now forecasts its full-year revenue to grow by roughly 11% to $3.2 billion. Management also projects adjusted earnings per share of $3.90 to $3.94 and free cash flow of $910 million to $930 million.

"The emerging use of AI by organizations and threat actors alike has further elevated the role identity plays within a company's security posture," McKinnon said during a conference call with analysts. "Organizations are accelerating their infrastructure modernization timelines to address this heightened threat environment."

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Okta. The Motley Fool has a disclosure policy.

Okta (OKTA - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, OKTA broke out above the 50-day moving average, suggesting a short-term bullish trend.

The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.

OKTA could be on the verge of another rally after moving 23.1% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

The bullish case only gets stronger once investors take into account OKTA's positive earnings estimate revisions. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

Investors should think about putting OKTA on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.

Okta Today

$166.23 -6.68 (-3.86%)

As of 08/28/2026 04:00 PM Eastern

$62.66▼

$174.85100.14

$172.92

Okta’s NASDAQ: OKTA summer stock price weakness was warranted, as its security platform came under scrutiny amid industry headwinds and management and integration challenges. However, today's story is completely different: Okta has navigated its prior hurdles and emerged as an AI winner.

It just so happens that AI is driving an exponential increase in digital traffic, increasing the need for ID security and access management, Okta’s specialty. While growth remains sluggish for now, signs point to acceleration and long-term profitability.

Get Okta alerts:

Okta’s late-August price action reflects the strength of its newfound position. Up more than 100% from its April 2026 lows, the stock price surged 29% in a single day following the Q2 earnings release. The move confirmed support at a critical level, aligned with the mid-summer breakout, and set a fresh high, confirming the August price action as a continuation signal.

In this scenario, Okta’s uptrend is at best half over, with another $60 to $70 of upside relative to the pre-release highs near $150. As it stands, the near- to mid-term target is $210 to $220, putting this market on track to retest all-time highs within the next 12 months.

Okta Outperforms and Guides Higher on Agentic Traffic StrengthOkta had a good quarter, with revenue growing 10.6% to $805 million, about 150 basis points (bps) better than expected. Subscriptions drove the strength, growing 12%, with internal metrics pointing to sustained strength in the coming quarters. The remaining performance obligation (RPO), a measure of backlog, grew at an accelerated 17% pace, and the current RPO, the portion of the backlog to be recognized within the next 12 months, rose 14%.

Margin was another strength. The company controlled costs while investing in growth, lifting GAAP margins and sustaining strength on an adjusted basis. Adjusted operating margin came in flat, which was good enough, as share buybacks compounded the bottom line for accelerated growth.

The adjusted earnings per share of $1.05 was up more than 1,500 bps year-over-year (YOY) and more than 800 bps above expectations, with strength carrying through into guidance.

Guidance was a catalyst. Executives issued a solid Q3 forecast, expecting revenue above consensus, and improved the full-year outlook to include a low-end target for revenue and earnings above forecast. The likely outcome is that Okta continues to gain momentum in the coming quarters as data center completion and deepening agentic dependence drive traffic.

Can Okta Reach $200? Analysts and Institutions Weigh InAnalysts' initial response to the release was very bullish. MarketBeat tracked eight revisions within the first 12 hours of the release, including several price targets reaffirmed above the consensus, numerous price target increases, and sentiment upgrades.

68th Percentile

Moderate Buy

4.0% Upside

Healthy

N/A

0.74 Selling Shares

24.29%

See Full Analysis

As it stands, the consensus price target assumes fair value near $168, a slight downside in light of the post-release price pop, but the trend matters more, as it leads to the high-end range. Four analysts assign a price target of $200, which would represent a significant stepping stone for this stock because it aligns with the bottom of its 2020/2022 reversal pattern.

Institutional activity is a critical factor. The group bought aggressively in early Q3, underpinning market support, but has distributed over the trailing 12-month period. The risk is that they sell into the market, but this seems unlikely now that the business has traction. The worst case is that buyers dry up and institutions move to the sidelines, waiting to see what happens next. The best-case scenario is that they sustain their bullish posture and underpin the rally to $200.

A Healthier Balance Sheet Sets Okta Up for Value GainsCash flow, the balance sheet, and capital return are driving forces for this stock. The company is profitable and improving its profitability by leveraging AI. Q2 highlights include a 28% free cash flow margin, up 600 bps YOY, supporting a healthy balance sheet and capital returns.

Capital returns consist of opportunistic share buybacks, with Q2 activity aiding a 1.1% YOY reduction and ample authorization remaining. Balance sheet highlights reflect the impacts of debt reduction and buybacks, with cash, assets, and liabilities down. Key details include zero long-term debt as of quarter-end and steady equity, along with healthy cash flow, setting the stage for aggressive value gains in upcoming quarters.

Weighing Okta's Breach Risk Against Its Agentic AI UpsideOkta’s biggest risk is its position as an ID control plane. That makes it a prime target for attack, especially via third-party vendors who inadvertently receive overinflated authorizations. Breaches mean lost trust and impaired business, and they will be reflected in the stock’s price. Catalysts include expanding penetration of digital services throughout the ecosystem, agentic traffic, and the proliferation of hyperscale datacenter supercomputers slated to come online over the subsequent 12 to 24 months.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Should You Invest $1,000 in Okta Right Now?Before you consider Okta, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Okta wasn't on the list.

While Okta currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.

Get This Free Report

Key Takeaways Okta shares jumped 28.63% after Q2 fiscal 2027 earnings and revenues beat consensus estimates. OKTA's cRPO rose 14% to $2.59B, while customers with over $1M in ACV increased more than 20%. Okta expects fiscal 2027 revenue of $3.216B-$3.226B and non-GAAP EPS of $3.90-$3.94. Okta (OKTA - Free Report) shares jumped 28.63% after the company reported second-quarter fiscal 2027 results on Wednesday, reflecting better-than-expected results, accelerating bookings indicators, strong large-enterprise execution and rising investor enthusiasm around AI-agent security. In the second quarter of fiscal 2027, revenues increased 11% year over year to $805 million, while subscription revenues rose 12% to $793 million. Adjusted earnings of $1.05 per share exceeded the Zacks Consensus Estimate by 9.38%, while revenues topped the consensus mark by 1.62%.

More importantly, forward-looking demand metrics strengthened. Remaining Performance Obligation (RPO) increased 17% to $4.86 billion and current RPO (cRPO) rose 14% to $2.59 billion. The cRPO growth accelerated while workforce identity and customer identity ACV increased 11% and 13%, respectively. Free cash flow margin also expanded 580 basis points to 28.1%. However, is this enough for the investors to jump into the stock? Let’s find out.

Okta Rides on Strong Enterprise Demand & New ProductsOkta is benefiting from strong enterprise demand. In the second quarter of fiscal 2027, the number of customers generating more than $1 million in Annual Contract Value (ACV) increased more than 20%, taking the total above 600. Upsell, cross-sell and pipeline generation also remained healthy. Anthropic selected Okta as the first identity provider supporting Enterprise Managed Auth for MCP connectors, while Okta has expanded relationships with AWS, Cisco, OpenAI, Databricks and Snowflake and added more than 25 Cross-App Access integrations. The company’s installed base of more than 20,000 customers gives Okta an established distribution channel through which to introduce AI-security products.

New products accounted for roughly 30% of the quarterly bookings, while adding a new product to a transaction generates about a 40% average ACV uplift. Okta for AI Agents secured dozens of deals during the quarter, including several million-dollar-plus transactions. Okta Identity Governance, Privileged Access, Identity Threat Protection and other newer offerings are increasing the amount customers spend on the platform. Okta’s investments in cloud marketplaces, global system integrators and channel partners are also improving deal economics.

The rapid deployment of enterprise AI agents is expanding Okta’s addressable identity-security opportunity beyond human users to machine and agent identities. Okta for AI Agents provides agent discovery, governance, access control and runtime protection, while Auth0 for AI Agents addresses developers building agentic applications. Okta noted that AI security conversations are increasingly expanding into broader identity-modernization projects, potentially creating cross-selling opportunities across Okta's platform.

These factors are expected to help OKTA shares appreciate. The company is facing stiff competition from the likes of Microsoft (MSFT - Free Report) , CrowdStrike (CRWD - Free Report) and Cisco Systems (CSCO - Free Report) . YTD, CrowdStrike, Cisco and Microsoft have returned 94.5%, 45.6% and 4.5%, respectively.

OKTA Stock’s Price Performance
Image Source: Zacks Investment Research

OKTA Offers Positive FY27 GuidanceFor fiscal 2027, OKTA expects revenues between $3.216 billion and $3.226 billion, indicating 10-11% growth from the figure reported in fiscal 2026. Okta expects fiscal 2027 non-GAAP earnings between $3.90 and $3.94 per share.

For the third quarter of fiscal 2027, OKTA expects revenues between $813 million and $817 million, indicating 10% growth from the figure reported in the year-ago quarter. Okta expects fiscal 2027 non-GAAP earnings between 92 cents and 94 cents per share.

The Zacks Consensus Estimate for Okta’s fiscal 2027 earnings has increased by a penny to $3.84 per share over the past 30 days. The earnings estimate suggests 9.71% growth over the figure reported in fiscal 2026. The consensus estimate for revenues is currently pegged at $3.21 billion, suggesting 9.96% growth from the figure reported in fiscal 2026.

The Zacks Consensus Estimate for Okta’s third-quarter fiscal 2027 earnings has been steady at 93 cents per share over the past 30 days. The earnings estimate suggests 13.41% growth over the figure reported in the year-ago quarter. The consensus estimate for revenues is currently pegged at $813.2 million, suggesting 9.6% growth from the figure reported in the year-ago quarter.

Here’s Why OKTA is a BuyOKTA shares are trading at a premium as suggested by the Value Score of F.

In terms of forward 12-month price/sales (P/S), Okta is trading at 8.91X, higher than the median of 5.06X and Cisco’s 6.16X. However, OKTA is cheaper than Microsoft and CrowdStrike, shares of which are trading at 9.36X and 34.77X, respectively.

OKTA Stock’s Valuation
Image Source: Zacks Investment Research

Despite its premium valuation, Okta’s improving growth indicators, expanding large-enterprise footprint and increasing contribution from newer products strengthen its investment case. Rising adoption of Okta for AI Agents could provide an additional growth avenue as enterprises increasingly seek to secure AI agents and machine identities. Accelerating cRPO growth, healthy cross-selling opportunities, expanding free cash flow margins and an encouraging fiscal 2027 outlook further support prospects.

Okta currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Okta (OKTA -3.86%) stock closed out this week's trading with a huge gain, rising 23% across the stretch. Meanwhile, the S&P 500 ended the week up 1.1%, and the Nasdaq Composite gained 1.8%.

After the stock market closed on Wednesday, Okta released results for the second quarter of its 2027 fiscal year -- a period that closed July 31. The company reported sales and earnings that beat expectations and also issued encouraging guidance, and its stock also got a boost from excitement surrounding the broader cybersecurity industry.

Image source: Getty Images.

Okta served up strong Q2 results and guidance Okta recorded a non-GAAP (adjusted) profit of $1.05 per share on sales of $805 million last quarter, beating the average analyst estimate's call for adjusted earnings of $0.96 per share on sales of roughly $793 million. The company's revenue was up 10.6% year over year in the quarter, and adjusted earnings per share were up 15.4%.

Okta also said that it expects to record sales between $3.216 billion and $3.226 billion for the year -- essentially in line with the average analyst estimate. Meanwhile, adjusted earnings per share are projected to be between $3.90 and $3.94 -- significantly ahead of the average analyst estimate's call for per-share earnings of $3.84 prior to the release of the report.

Premium Feature

Moneyball Superscore

80/100

Today's Change

(

-3.86

%) $

-6.68

Current Price

$

166.23

Cybersecurity stocks were hot this week In addition to strong earnings reports from companies including Okta and CrowdStrike, the broader cybersecurity industry saw a bullish valuation backdrop thanks to concerns about the rising tide of cyberthreats driven by artificial intelligence (AI). On Thursday, a public letter signed by more than tech 100 companies was published that urged businesses, institutions, and politicians to prioritize cybersecurity protections amid expectations that AI will continue to usher in a wider range of increasingly advanced and numerous threats. While the evolution of these threats poses huge challenges, it also suggests a strong demand environment for Okta.

Keith Noonan has positions in CrowdStrike. The Motley Fool has positions in and recommends CrowdStrike and Okta. The Motley Fool has a disclosure policy.

Key Takeaways Okta expects Q2 revenues of $790-$794 million, up 9% year over year. New products drove about 25% of Q1 bookings, with deals showing about a 40% ACV uplift. Okta's RPO growth supports subscription revenue visibility despite competition and longer sales cycles. Okta (OKTA - Free Report) is set to release second-quarter fiscal 2027 results on Aug. 26.

For the second quarter of fiscal 2027, Okta expects revenues in the range of $790-$794 million, implying 9% year-over-year growth. The company expects non-GAAP net income per share between 95 cents and 97 cents.

The Zacks Consensus Estimate for earnings has remained steady at 96 cents per share over the past 30 days, indicating a 5.49% year-over-year increase. The consensus mark for revenues is pegged at $792.14 million, indicating an 8.81% increase over the year-ago quarter’s reported figure.

Okta’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise being 7.65%.

Let’s see how things have shaped up for Okta prior to this announcement:

Factors to Note for OktaOkta’s second-quarter fiscal 2027 performance is expected to have benefited from an expanding portfolio across governance, privileged access, device access, authorization, posture management and AI-driven threat protection, which continues to support customer wins and cross-sell.

In the first quarter of fiscal 2027, customers with more than $100K in annual contract value (ACV) increased 6% year over year to 5,180. Remaining Performance Obligations (RPOs) were $4.719 billion, up 16% year over year, and current RPO was $2.499 billion, up 12%. For the second quarter of fiscal 2027, management expects current RPO between $2.505 billion and $2.515 billion, implying 11% year-over-year growth and supporting forward subscription revenue visibility.

A major driver for Okta’s anticipated growth is the rapid adoption of its new and innovative products, particularly those focused on AI security. Products such as Okta Identity Governance, Okta Privileged Access and the newly introduced Auth0 for AI Agents and Okta for AI Agents have seen strong early demand. The company highlighted that new products represented about 25% of fiscal first-quarter 2027 bookings and that deals including new products have shown about a 40% ACV uplift, reinforcing the long-term cross-sell potential as agent deployments scale. This is expected to have driven significant value for customers in the to-be-reported quarter.

Expanding partnerships and integrations are expected to have driven Okta’s top-line growth. Okta has formed alliances with major technology providers such as ServiceNow, Google, Amazon, OpenAI and Anthropic. These partnerships extend Okta’s reach into new AI-driven workflows and reinforce its position as an independent identity platform. The integration with ServiceNow’s AI Control Tower and Amazon Bedrock Agent core enables Okta to provide identity governance for agents across multiple platforms, meeting customer demands for flexibility and security in a rapidly evolving AI landscape.

However, the company is facing competitive pressure from large platform vendors, and specialists remain intense; sales cycles can stay elongated in a cautious IT spend environment, and past security incidents still weigh on customer confidence, upsell momentum, and retention.

What Our Model SaysPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Okta has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Dell Technologies (DELL - Free Report) has an Earnings ESP of +6.42% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dell Technologies shares have surged 251.2% in the year-to-date period. Dell Technologies is slated to report second-quarter fiscal 2027 results on Sept. 1.

Hewlett Packard (HPE - Free Report) has an Earnings ESP of +9.96% and carries a Zacks Rank #2 at present.

Hewlett Packard shares have surged 122.5% in the year-to-date period. Hewlett Packard is set to report third-quarter fiscal 2026 results on Sept. 2.

Intuit (INTU - Free Report) has an Earnings ESP of +0.08% and carries a Zacks Rank #3 at present.

Intuit shares have plunged 44.6% in the year-to-date period. Intuit is set to report fourth-quarter fiscal 2026 results on Aug. 25.

In a blog update, Claude commented on its efforts to help more teams use frontier capabilities for cyber defense. &quot;Claude Mythos 5 is now available in Claude Security, and coming soon to partners&#039; cyber defense tools. We&#039;re also launching a $35M fund to help secure open-source software and sharing plans to expand our Cyber Verification Program. The riskiest behavior occurs when a user has direct access to a model, where a malicious actor can try to steer it toward harmful uses. But if users can only receive specific outputs, such as a patch for a vulnerability or a security alert, that risk is much lower. The changes we&#039;re announcing give users greater access to the defensive results, while maintaining appropriate guardrails around direct access to the model: Claude Mythos 5 integration into the tools defenders rely on. We&#039;re working with our cybersecurity technology and services partners to integrate Claude Mythos 5 into the products and services defenders already use to secure their software. Claude Security scans can now run on Claude Mythos 5. Customers on Claude Enterprise plans can now run our most capable model in Claude Security, using it to scan their codebases for security vulnerabilities and suggest patches.$35M in credits for open-source security. Our new Defender Advantage Fund will provide $35M in credits to organizations working to patch vulnerabilities in open-source projects, automate parts of the process of scanning and patching open-source software, and experiment with new security approaches. Expanding our Cyber Verification Program. The program already gives vetted defenders reduced safeguards on Opus and Sonnet models. In the coming weeks, we will expand this program to include broader dual-use capabilities on Opus and Sonnet, with Mythos-class access to follow... We will continue to work with government partners, organizations, open-source maintainers, and the broader industry to build the resilient cyber infrastructure today&#039;s highly capable AI models demand.&quot; Publicly traded companies in the space include Check Point (CHKP), CrowdStrike (CRWD), CyberArk (CYBR), F5 (FFIV), Fortinet (FTNT), Gen Digital (GEN), Okta (OKTA), Palo Alto Networks (PANW) and Qualys (QLYS). <a class="reference_link" href="https://claude.com/blog/bringing-claude-mythos-5-to-more-defenders" target="new">Reference Link</a>

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

The most useful thing said about cybersecurity this week came from Abhijit Dubey, the global CEO of NTT DATA, who told CNBC that “the frontier AI effectively has changed the cybersecurity equation” because attacks are now exponentially more sophisticated, the surface area has grown, and everything is happening at machine speed. His conclusion follows directly: “when you have attacks that are operating on machine speed, you cannot have defense. That is human speed.”

Dubey announced an expanded partnership with Palo Alto Networks (NASDAQ:PANW | PANW Price Prediction) covering both AI for security and security for AI.

The interesting question for investors is which US-listed vendors are positioned for the shift he describes. The money is quietly moving toward whoever can govern autonomous agents, and away from whoever built a business selling vulnerability detection and patching. That reframes the sector from a cost center to a prerequisite for AI adoption.

Why Detection And Patching Is the Losing Side Dubey put the legacy problem this way: “Most cybersecurity postures and enterprises effectively are vulnerability detection oriented” at a moment when attackers are exploitation-driven. Nikesh Arora made the same point on PANW’s June earnings call, saying that frontier models can weaponize a vulnerability “in mere minutes,” whereas it used to take months.

Jay Chaudhry at Zscaler told investors that “you will never be done patching” and that hiding applications and eliminating lateral movement matters more than trying to close every hole. That is the same argument, phrased architecturally.

Vendors whose growth came from selling scanners, dashboards, and remediation queues find themselves in an awkward spot. Their pitch assumes a human has time to look at the alert. The vendors positioned for what comes next sell in-line enforcement, identity, and platform-level context.

Palo Alto Networks Is the Named Partner for a Reason PANW’s most recent quarter had revenue of $3 billion, up 31% year over year, and Next-Generation Security ARR reaching $8.13 billion, up 60%, disclosed in the company’s Q3 FY26 8-K. Arora described a Prisma AIRS deal with a global consulting customer running more than 2 trillion tokens per month on the platform.

PANW trades at a forward P/E of 91x with the stock up 89.77% year to date through August 20. That is not a cheap valuation, and platformization stories have disappointed on margin before.

What PANW has that most rivals do not is IDERA, its identity platform stitched together with the CyberArk acquisition, aimed at what Arora called the “primary attack vector of the future”: agentic identities. That is the layer Dubey said matters.

The risk is straightforward. Stock-based compensation was 17% of revenue in the quarter, and integrating CyberArk without hurting growth remains a priority.

Identity Is What the Market Has Not Priced Todd McKinnon at Okta framed the customer problem cleanly in May, saying “91% of enterprises deploy AI agents, but only 22% have a way to identify them.” That gap is the entire investable idea.

Okta (NASDAQ:OKTA) trades at a forward P/E of 38x, a meaningful discount to PANW because growth is slower, with FY27 revenue guided to 9-10%. McKinnon said Okta’s pipeline for AI agent products was “bigger than anything we’ve ever seen”, and neutrality across hyperscalers is real leverage for a customer choosing an identity control plane.

CrowdStrike (NASDAQ:CRWD) has taken the endpoint franchise into agent governance through AIDR, with ARR reportedly growing “more than 250% sequentially” off a small base. George Kurtz argued that AIDR could exceed EDR in size because every agent needs a host and an identity. The identity layer has a shorter path to becoming non-optional than the platform layer, because agent identity is essential to governance.

Caveats Worth Weighing Zscaler (NASDAQ:ZS) is the interesting counter-case, down 22.22% year to date despite ARR reaching $3.5 billion. Its Symmetry Systems acquisition bets on the access-graph problem rather than issuing agent identity itself, which is defensible.

Fortinet (NASDAQ:FTNT) benefits from a firewall refresh cycle with product revenue up 52% last quarter. That is a real cash-generating business, but closer to infrastructure than to agent governance.

Platform consolidation has been sold to investors before, and margin expansion has been uneven. This cycle differs because Dubey’s framing removes the buyer’s option to wait. His line makes the point: “You have to do it securely from the beginning.” A customer who wants the AI cannot defer the security purchase, which is the first time in a while that has been true.

Contact [email protected] for any questions or corrections.

Okta (OKTA - Free Report) closed the most recent trading day at $141.21, moving -1.88% from the previous trading session. This move lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow experienced a rise of 0.22%, and the technology-dominated Nasdaq saw an increase of 0.16%.

Heading into today, shares of the cloud identity management company had gained 1.56% over the past month, lagging the Computer and Technology sector's gain of 3.8% and the S&P 500's gain of 3.25%.

The upcoming earnings release of Okta will be of great interest to investors. The company's earnings report is expected on August 26, 2026. The company is predicted to post an EPS of $0.96, indicating a 5.49% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $792.14 million, indicating a 8.81% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.83 per share and revenue of $3.2 billion, indicating changes of +9.43% and +9.51%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Okta boasts a Zacks Rank of #2 (Buy).

Looking at valuation, Okta is presently trading at a Forward P/E ratio of 37.58. This indicates a discount in contrast to its industry's Forward P/E of 46.41.

We can additionally observe that OKTA currently boasts a PEG ratio of 2.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. OKTA's industry had an average PEG ratio of 2.77 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 25, putting it in the top 11% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

SANTA CLARA, Calif.--(BUSINESS WIRE)-- #AIInfrastructure--Lightbits Labs®, inventor of the NVMe® over TCP storage protocol and Inferra™, intelligent KV cache orchestration engine, today announced native integration with Okta in Lightbits software release v3.20.1. This enhancement streamlines storage security for enterprise customers, including one of the world's largest US-based financial services providers. Okta (Nasdaq: OKTA), a leading identity and access management company based in San Francisco, Calif., provi.

It's a mixed picture to kick off a new trading week. Sam Vadas highlights softness in the software space that includes downgrades in Workday (WDAY).

Okta (OKTA - Free Report) closed at $147.30 in the latest trading session, marking a -2.02% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.26%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.54%.

Shares of the cloud identity management company have depreciated by 2.77% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.41%, and the S&P 500's gain of 2.13%.

Market participants will be closely following the financial results of Okta in its upcoming release. The company plans to announce its earnings on August 26, 2026. In that report, analysts expect Okta to post earnings of $0.96 per share. This would mark year-over-year growth of 5.49%. Meanwhile, the latest consensus estimate predicts the revenue to be $792.14 million, indicating a 8.81% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $3.83 per share and a revenue of $3.2 billion, demonstrating changes of +9.43% and +9.51%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Okta is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Okta's current valuation metrics, including its Forward P/E ratio of 39.25. This valuation marks a discount compared to its industry average Forward P/E of 47.55.

Also, we should mention that OKTA has a PEG ratio of 2.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. OKTA's industry had an average PEG ratio of 2.75 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

For Immediate ReleaseChicago, IL – August 7, 2026 – Today, Zacks Equity Palo Alto Networks, Inc. (PANW - Free Report) , Fortinet, Inc. (FTNT - Free Report) and Okta, Inc. (OKTA - Free Report) .

Industry: Security

Link: https://www.zacks.com/commentary/2969533/3-security-stocks-to-bet-on-now-as-industry-trends-show-promise

The Zacks Security industry is experiencing robust demand for cybersecurity products, driven by the increasing need for secure networks and cloud-based applications, especially with the rise of hybrid work environments. This surge in demand is largely due to a significant increase in data breaches, prompting companies to seek comprehensive IT security solutions. The growing need for privileged access security, fueled by digital transformation and cloud migration strategies, is boosting demand for cybersecurity solutions.

Companies, such as Palo Alto Networks, Inc., Fortinet, Inc. and Okta, Inc., are benefiting from these trends. However, the industry's short-term growth prospects may be hampered as organizations delay investments in large and costly technology products due to global economic slowdown concerns, macroeconomic challenges and geopolitical tensions. Increased operating expenses related to hiring new employees and implementing sales and marketing strategies to gain market share are expected to pressure profit margins in the near term.

Industry DescriptionThe Zacks Security industry encompasses companies that provide both on-premise and cloud-based security solutions. These solutions cater to a variety of needs, such as identity access management, infrastructure protection, integrated risk management, malware analysis and Internet traffic management, among others. The industry offers a diverse range of security solutions, many of which can be used interchangeably. 

These solutions are broadly categorized into three types — Computer Security, Cybersecurity and Information Security. Computer Security focuses on safeguarding the software and hardware of computer systems from vulnerabilities. Cybersecurity encompasses areas like web security, network security, application security, container security and information security. Information Security deals with the protection of data in all forms, whether physical or digital.

Major Trends Shaping the Future of the Security IndustryRising Cyber Threats Drive IT Security Demand: The increasing frequency of cyberattacks is escalating the need for robust security solutions. These threats not only adversely impact individual companies but also pose risks to national security in some countries. Companies in the security industry are actively addressing these issues as there is a growing need for protection against spear phishing, credential-based attacks, account takeovers and ransomware.

Accelerated Digital Transformation Fuels Growth: The shift toward digital transformation and cloud migration is driving the demand for cybersecurity solutions. Sectors ranging from education and entertainment to healthcare are increasingly relying on technology, making them vulnerable to cyberattacks. Public institutions and large companies, as well as smaller organizations with less stringent security measures, are at risk. The deployment of 5G has expanded the Internet of Things (IoT) and artificial intelligence (AI), which, while simplifying operations, will increase cybercrime rates due to greater technological reliance.

Macroeconomic Headwinds May Affect IT Spending: Uncertain macroeconomic conditions and geopolitical issues may lead enterprises to delay significant IT investments. Amid current economic challenges, organizations are likely to conserve cash and reduce spending, which could negatively impact the security market in the short term.

High Operating Expenses Could Hurt Profitability: To remain competitive in the IT security market, companies are continually investing in expanding their capabilities. This includes substantial investments in research and development to enhance product offerings and improve overall security solutions for clients. Firms are heavily investing in sales and marketing, particularly by increasing their sales workforce. These elevated operating expenses, aimed at gaining market share, may reduce profit margins in the near term.

Zacks Industry Rank Indicates Bright ProspectsThe Zacks Security industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #68, which places it among the top 28% of nearly 250 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. The industry’s bottom-line estimates for 2026 have moved up to $1.60 from earnings of $1.42 expected a year ago.

Industry Outperforms S&P 500 and SectorOver the past year, the Zacks Security industry has outpaced the broader Zacks Computer and Technology sector and the S&P 500 composite.

The industry has surged 71.6% during this period, while the broader sector and the S&P 500 have soared 25% and 33.3%, respectively.

Industry's Current ValuationOn the basis of the forward 12-month price-to-sales ratio (P/S), which is a commonly used multiple for valuing Security stocks, the industry is currently trading at 18.27, higher than the S&P 500’s 5.07 and the sector’s 6.65.

Over the last five years, the industry has traded as high as 21.44X and as low as 7.59X, with a median of 12.51X.

3 Security Stocks to BuyFortinet: It is a provider of network security appliances and Unified Threat Management (UTM) network security solutions to enterprises, service providers and government entities worldwide. Currently, Fortinet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fortinet's aggressive product roadmap positions it to capitalize on escalating cybersecurity demands throughout 2026. The rollout of FortiOS 8.0 with AI-driven security, next-generation SASE and quantum-safe capabilities, alongside FortiGate 3500G and 400G firewalls, addresses critical enterprise needs for unified security platforms. Management's strategic focus on expanding Unified SASE, Secure SD-WAN, FortiSASE and Security Fabric integration through a single FortiOS operating system creates compelling migration opportunities from legacy competitors.

Fortinet's ongoing investments in sales capacity, cloud infrastructure and AI capabilities are positioned to generate meaningful operating leverage improvements throughout 2026 and beyond. The company's strategic hiring initiatives completed over recent quarters create productivity advantages as field teams mature and reach full effectiveness. Investments in automation and cloud-native delivery models reduce incremental costs while improving customer experience and retention. The transition toward higher-margin subscription and service revenue streams enhances the profitability trajectory.

The Zacks Consensus Estimate for Fortinet’s 2026 earnings has been revised upward by 7.9% to $3.40 per share over the past seven days. FTNT shares have surged 72.6% over the past year.

Palo Alto Networks: It offers network security solutions to enterprises, service providers and government entities worldwide. The company has been benefiting from continuous deal wins and the increasing adoption of its next-gen security platforms, which are attributable to the rise of the hybrid work trend and the heightened need for stronger security. Palo Alto Networks has continued to innovate, focusing on AI, automation and cloud security, to stay ahead of the competition. Its partnership with NVIDIA to develop AI-driven private 5G security solutions highlights its commitment to emerging technologies and next-generation security demands.

The company’s platformization strategy has also been a game-changer. Instead of relying on one-off product sales, Palo Alto Networks has transitioned to a bundled cybersecurity platform approach, which enhances recurring revenues and customer retention. This strategy ensures financial stability and predictable growth.

The Zacks Consensus Estimate for this Zacks Rank #2 (Buy) company’s fiscal 2027 earnings has remained unchanged at $4.08 per share over the past 60 days. PANW’s shares have soared 110.8% over the past year.

Okta:It is a leading provider of identity security for enterprises. Okta’s prospects benefit from an expanding clientele, driven by an innovative product pipeline and strong demand for Identity solutions. OKTA carries a Zacks Rank #2 at present.

Okta’s strong portfolio includes new offerings such as Okta Identity Governance (OIG), Okta Privileged Access, Okta Device Access, Identity Security Posture Management, Identity Threat Protection with Okta AI, Fine-Grained Authorization, Auth0 for AI Agents and Okta for AI Agents. These new solutions are helping OKTA gain market share and drive top-line growth.

Okta had more than 20,000 total customers at the end of the first quarter of fiscal 2027. Its customers with more than $100,000 in annual contract value (ACV) increased 6% year over year to 5,180.

The consensus mark for Okta’s fiscal 2027 earnings has remained unchanged at $3.83 per share over the past 60 days. Shares of OKTA have soared 50.4% over the past year.

Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. 

Get all the details here >>

Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

The Zacks Security industry is experiencing robust demand for cybersecurity products, driven by the increasing need for secure networks and cloud-based applications, especially with the rise of hybrid work environments. This surge in demand is largely due to a significant increase in data breaches, prompting companies to seek comprehensive IT security solutions. The growing need for privileged access security, fueled by digital transformation and cloud migration strategies, is boosting demand for cybersecurity solutions.

Companies, such as Palo Alto Networks, Inc. (PANW - Free Report) , Fortinet, Inc. (FTNT - Free Report) and Okta, Inc. (OKTA - Free Report) , are benefiting from these trends. However, the industry's short-term growth prospects may be hampered as organizations delay investments in large and costly technology products due to global economic slowdown concerns, macroeconomic challenges and geopolitical tensions. Increased operating expenses related to hiring new employees and implementing sales and marketing strategies to gain market share are expected to pressure profit margins in the near term.

Industry Description The Zacks Security industry encompasses companies that provide both on-premise and cloud-based security solutions. These solutions cater to a variety of needs, such as identity access management, infrastructure protection, integrated risk management, malware analysis and Internet traffic management, among others. The industry offers a diverse range of security solutions, many of which can be used interchangeably. These solutions are broadly categorized into three types — Computer Security, Cybersecurity and Information Security. Computer Security focuses on safeguarding the software and hardware of computer systems from vulnerabilities. Cybersecurity encompasses areas like web security, network security, application security, container security and information security. Information Security deals with the protection of data in all forms, whether physical or digital.

Major Trends Shaping the Future of the Security Industry Rising Cyber Threats Drive IT Security Demand: The increasing frequency of cyberattacks is escalating the need for robust security solutions. These threats not only adversely impact individual companies but also pose risks to national security in some countries. Companies in the security industry are actively addressing these issues as there is a growing need for protection against spear phishing, credential-based attacks, account takeovers and ransomware.

Accelerated Digital Transformation Fuels Growth: The shift toward digital transformation and cloud migration is driving the demand for cybersecurity solutions. Sectors ranging from education and entertainment to healthcare are increasingly relying on technology, making them vulnerable to cyberattacks. Public institutions and large companies, as well as smaller organizations with less stringent security measures, are at risk. The deployment of 5G has expanded the Internet of Things (IoT) and artificial intelligence (AI), which, while simplifying operations, will increase cybercrime rates due to greater technological reliance.

Macroeconomic Headwinds May Affect IT Spending: Uncertain macroeconomic conditions and geopolitical issues may lead enterprises to delay significant IT investments. Amid current economic challenges, organizations are likely to conserve cash and reduce spending, which could negatively impact the security market in the short term.

High Operating Expenses Could Hurt Profitability: To remain competitive in the IT security market, companies are continually investing in expanding their capabilities. This includes substantial investments in research and development to enhance product offerings and improve overall security solutions for clients. Firms are heavily investing in sales and marketing, particularly by increasing their sales workforce. These elevated operating expenses, aimed at gaining market share, may reduce profit margins in the near term.

Zacks Industry Rank Indicates Bright Prospects The Zacks Security industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #68, which places it among the top 28% of nearly 250 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. The industry’s bottom-line estimates for 2026 have moved up to $1.60 from earnings of $1.42 expected a year ago.

Industry’s 2026 EPS Estimate Revision Trend

Industry Outperforms S&P 500 and Sector Over the past year, the Zacks Security industry has outpaced the broader Zacks Computer and Technology sector and the S&P 500 composite.

The industry has surged 71.6% during this period, while the broader sector and the S&P 500 have soared 25% and 33.3%, respectively.

One-Year Price Return Performance

Industry's Current Valuation On the basis of the forward 12-month price-to-sales ratio (P/S), which is a commonly used multiple for valuing Security stocks, the industry is currently trading at 18.27, higher than the S&P 500’s 5.07 and the sector’s 6.65.

Over the last five years, the industry has traded as high as 21.44X and as low as 7.59X, with a median of 12.51X, as the charts below show.

Price-to-Sales Ratio (Industry vs. S&P 500)

Price-to-Sales Ratio (Industry vs. Sector)

3 Security Stocks to Buy Fortinet: It is a provider of network security appliances and Unified Threat Management (UTM) network security solutions to enterprises, service providers and government entities worldwide. Currently, Fortinet sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fortinet's aggressive product roadmap positions it to capitalize on escalating cybersecurity demands throughout 2026. The rollout of FortiOS 8.0 with AI-driven security, next-generation SASE and quantum-safe capabilities, alongside FortiGate 3500G and 400G firewalls, addresses critical enterprise needs for unified security platforms. Management's strategic focus on expanding Unified SASE, Secure SD-WAN, FortiSASE and Security Fabric integration through a single FortiOS operating system creates compelling migration opportunities from legacy competitors.

Fortinet's ongoing investments in sales capacity, cloud infrastructure and AI capabilities are positioned to generate meaningful operating leverage improvements throughout 2026 and beyond. The company's strategic hiring initiatives completed over recent quarters create productivity advantages as field teams mature and reach full effectiveness. Investments in automation and cloud-native delivery models reduce incremental costs while improving customer experience and retention. The transition toward higher-margin subscription and service revenue streams enhances the profitability trajectory.

The Zacks Consensus Estimate for Fortinet’s 2026 earnings has been revised upward by 7.9% to $3.40 per share over the past seven days. FTNT shares have surged 72.6% over the past year.

Price and Consensus: FTNT

Palo Alto Networks: It offers network security solutions to enterprises, service providers and government entities worldwide. The company has been benefiting from continuous deal wins and the increasing adoption of its next-gen security platforms, which are attributable to the rise of the hybrid work trend and the heightened need for stronger security. Palo Alto Networks has continued to innovate, focusing on AI, automation and cloud security, to stay ahead of the competition. Its partnership with NVIDIA to develop AI-driven private 5G security solutions highlights its commitment to emerging technologies and next-generation security demands.

The company’s platformization strategy has also been a game-changer. Instead of relying on one-off product sales, Palo Alto Networks has transitioned to a bundled cybersecurity platform approach, which enhances recurring revenues and customer retention. This strategy ensures financial stability and predictable growth.

The Zacks Consensus Estimate for this Zacks Rank #2 (Buy) company’s fiscal 2027 earnings has remained unchanged at $4.08 per share over the past 60 days. PANW’s shares have soared 110.8% over the past year.

Price and Consensus: PANW

Okta: It is a leading provider of identity security for enterprises. Okta’s prospects benefit from an expanding clientele, driven by an innovative product pipeline and strong demand for Identity solutions. OKTA carries a Zacks Rank #2 at present.

Okta’s strong portfolio includes new offerings such as Okta Identity Governance (OIG), Okta Privileged Access, Okta Device Access, Identity Security Posture Management, Identity Threat Protection with Okta AI, Fine-Grained Authorization, Auth0 for AI Agents and Okta for AI Agents. These new solutions are helping OKTA gain market share and drive top-line growth.

Okta had more than 20,000 total customers at the end of the first quarter of fiscal 2027. Its customers with more than $100,000 in annual contract value (ACV) increased 6% year over year to 5,180.

The consensus mark for Okta’s fiscal 2027 earnings has remained unchanged at $3.83 per share over the past 60 days. Shares of OKTA have soared 50.4% over the past year.

Price and Consensus: OKTA

290 Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

SAN FRANCISCO--(BUSINESS WIRE)--Okta, Inc. (NASDAQ: OKTA), the leading independent identity partner, today announced that it will release its financial results for its second quarter fiscal year 2027 ended July 31, 2026 after the U.S. market close on Wednesday, August 26, 2026. Okta will host a live video webcast that day at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss the results.Event: Okta's Second Quarter Fiscal Year 2027 Financial ResultsDate: Wednesday, August 26, 2026Time: 2.