Okta's Security Portfolio Expands Clientele: A Sign of More Upside?

Globe and Mail

23-06-2025

Okta OKTA is benefiting from its innovative portfolio that is driving clientele. In the first quarter of fiscal 2026, it reported strong momentum among large-cap customers, including Global 2000 companies and government agencies. These large organizations are shaping Okta's product roadmap, pushing the company to deliver advanced identity solutions across workforce, customer and AI-driven use cases.
Okta's more than $1 million annual contract value (ACV) customer base grew 20% year over year, a strong sign of enterprise adoption. Companies from critical sectors like energy, telecom and insurance are turning to Okta not only for employee identity security but also for securing APIs and machine-to-machine interactions. In response, the company has introduced solutions such as Identity Governance (OIG), Identity Threat Protection (ITP) and Privileged Access (OPA) to meet the complex demands of these clients.
Public sector momentum further underscores this enterprise-led growth. In the first quarter of fiscal 2026, four of Okta's top 10 deals came from U.S. government entities. These clients are leveraging the company's FedRAMP-compliant cloud solutions for secure authentication, lifecycle management and automated workflows.
Meanwhile, Okta's Customer Identity Cloud (Auth0) is gaining ground in large-scale deployments. A Global 2000 energy company implemented Auth0 across all customer-facing apps, while a major tech reseller switched from Microsoft to Auth0 to boost scalability and developer experience. These moves highlight trust in Okta's ability to deliver secure, seamless and scalable identity experiences for millions of users.
CyberArk & SailPoint: OKTA's Identity Rivals to Watch
CyberArk Software CYBR, a leader in privileged access management, is frequently compared to Okta for its robust identity security and strong margins. CyberArk's advantage is its comprehensive identity security platform, which has now been further enhanced through acquisitions such as Venafy and Zilla Security. By managing both human and machine identities, the company keeps pace with the growing demand. Its growing customer base helps CyberArk grow revenues through strategic upselling of its integrated security solutions.
SailPoint SAIL has established itself as a leader in Identity Governance & Administration, posing direct competition to Okta. SailPoint's strong Identity Security Cloud, supported by an extensive partner ecosystem, delivers seamless integration across hybrid environments. With low-code/no-code workflows and AI-driven access recommendations, SailPoint stands out for managing complex enterprise identities with precision and scalability.
OKTA's Price Performance, Valuation & Estimates
Shares of Okta have appreciated 26.1% year to date compared with the Zacks Security industry's return of 20.2%.
Okta currently trades at a premium with a forward price/cash flow ratio of 23.41, higher than the broader Zacks Computer & Technology sector's 20.12X. OKTA has a Value Score of D.
The Zacks Consensus Estimate for OKTA's 2026 revenues is pegged at $2.86 billion, indicating 9.44% year-over-year growth. The consensus mark for earnings is pegged at $3.28 per share, which increased 2.8% over the past 30 days. The earnings figure suggests 16.73% growth over the figure reported in fiscal 2025.
OKTA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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CyberArk Software Ltd. (CYBR): Free Stock Analysis Report
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