Latest news with #OktaPrivilegedAccess
Yahoo
25-06-2025
- Business
- Yahoo
Okta's Cross App Access Expands Security Portfolio: Buy the Stock?
Okta OKTA is expanding its security portfolio with the launch of a new protocol, Cross App Access, which helps in securing AI agents. The company is working with ISVs in launching Cross App Access that will enable ISVs' enterprise customers to better connect their AI tools to other apps and data. End users ultimately benefit as the latest protocol removes repetitive authorization consent screens and manages agent access for better security and latest protocol reflects Okta's commitment to protecting its customers deploying AI. The company's focus on protecting non-human identities (NHIs) and developers building secure agents is noteworthy. NHIs include service accounts, shared accounts, machines and tokens, and often operate outside traditional identity governance frameworks and can leave organizations vulnerable to security risks. Identity Security Posture Management and Okta Privileged Access help in solving the vulnerabilities related to NHIs. Moreover, for developers, Okta is gaining from the rapid adoption of the Auth0 platform. Auth for generative AI addresses the problem of AI agents creating unsecured NHIs by enabling developers to integrate secure identity into their GenAI applications. Okta's offerings include Okta AI, a suite of AI-powered capabilities embedded across several products, which empowers organizations to harness AI to build better experiences and protect against cyberattacks. The company benefits from strong demand for its new products, including Identity Governance, Privileged Access, Device Access, Fine Grained Authorization, Identity Security Posture Management, and Identity Threat Protection with Okta AI. OKTA's innovative portfolio is helping the company win clients, driving top-line growth. It exited first-quarter fiscal 2026 with roughly 20,000 customers and $4.084 billion in RPOs, reflecting strong growth prospects for subscription revenues. Customers with more than $100 thousand in Annual Contract Value increased by 70 sequentially to 4,870. The combined governance portfolio of Okta Identity Governance, Lifecycle Management, and Workflows has surged 400% over the past three years to nearly $40 billion at the end of the fiscal first quarter. Okta is benefiting from a rich partner base that includes the likes of Amazon Web Services, CrowdStrike, Google, LexisNexis Risk Solutions, Microsoft MSFT, Netskope, Palo Alto Networks, Plaid, Proofpoint, Salesforce, ServiceNow, VMware, Workday, Yubico and Zscaler. The company has more than 7,000 integrations with cloud, mobile, and web applications and IT infrastructure providers as of April 30, innovative portfolio and rich partner base have helped Okta shares jump 25.2% year to date, outperforming the Zacks Computer and Technology sector, as well as peers CyberArk CYBR, Cisco Systems CSCO and Microsoft. While the sector has returned 0.9%, CyberArk, Cisco and Microsoft shares have appreciated 19.2%, 13.8% and 15.3%, respectively, over the same timeframe. Image Source: Zacks Investment Research The stock is currently trading above the 200-day moving average, indicating a bullish trend. Image Source: Zacks Investment Research For fiscal 2026, OKTA still expects revenues between $2.85 billion and $2.86 billion, indicating 9-10% growth from the figure reported in fiscal 2025. Uncertainty in the federal business, along with challenging macroeconomic conditions, are headwinds for the company. However, Okta expects fiscal 2026 non-GAAP earnings between $3.23 and $3.28 per share, up from previous guidance between $3.15 and $3.20 per share. The Zacks Consensus Estimate for Okta's earnings has increased 9 cents over the past 30 days to $3.28 per share over the past 30 days. The earnings figure suggests 16.73% growth over the figure reported in fiscal expects second-quarter fiscal 2026 revenues between $710 million and $712 million, indicating 10% year-over-year growth. The current portion of the company's remaining performance obligations (RPOs) is expected in the 10-11% range. Okta anticipates non-GAAP earnings between 83 cents and 84 cents per share. For second-quarter fiscal 2026, the Zacks Consensus Estimate for OKTA's earnings has increased by a nickel to 84 cents per share over the past 30 days. The earnings figure suggests 16.67% year-over-year growth. Okta, Inc. price-consensus-chart | Okta, Inc. Quote Okta shares are overvalued, as suggested by the Value Score of D. In terms of forward Price/Cash Flow, OKTA is trading at 23.23X compared with the broader sector's 20.13X and Cisco's 19.7X, suggesting a premium valuation. Image Source: Zacks Investment Research Despite a challenging macroeconomic condition and a stretched valuation, Okta rides on an innovative portfolio and an expanding currently has a Zacks Rank #2 (Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report Okta, Inc. (OKTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Yahoo
28-05-2025
- Business
- Yahoo
Okta Inc (OKTA) Q1 2026 Earnings Call Highlights: Strong Profitability Amid Cautious Outlook
Revenue Growth (Q2 FY26): Expected growth of 10%. Current RPO Growth (Q2 FY26): Expected growth of 10% to 11%. Non-GAAP Operating Margin (Q2 FY26): Expected at 26%. Free Cash Flow Margin (Q2 FY26): Expected at approximately 19%. Revenue Growth (FY26): Expected growth of 9% to 10%. Non-GAAP Operating Margin (FY26): Expected at 25%. Free Cash Flow Margin (FY26): Expected at approximately 27%. Warning! GuruFocus has detected 6 Warning Sign with OKTA. Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Okta Inc (NASDAQ:OKTA) reported strong financial performance in Q1 FY26, with record operating profitability and profit margin. The company experienced significant growth in its governance portfolio, with products like Okta Identity Governance and lifecycle management showing substantial adoption. Okta Inc (NASDAQ:OKTA) saw a nearly 400% increase in workflow executions over the past three years, indicating strong integration into customer IT infrastructures. The company is making strides in innovation, particularly with new products like Identity Security Posture Management and Okta Privileged Access, which address evolving cyber threats. Okta Inc (NASDAQ:OKTA) is well-positioned in the US public sector, with strong performance in Q1 and strategic investments yielding positive results. Okta Inc (NASDAQ:OKTA) has introduced additional conservatism in its guidance due to macroeconomic uncertainties, which could impact future performance. The company is facing headwinds in net revenue retention (NRR), which has declined for the fourth consecutive quarter. There is potential uncertainty in the US federal vertical, which could affect Okta Inc (NASDAQ:OKTA)'s federal business due to economic and political factors. Despite strong Q1 results, Okta Inc (NASDAQ:OKTA) is cautious about the macroeconomic environment, which could impact growth in the latter half of FY26. The company's go-to-market specialization is still in early stages, and while initial signals are positive, the long-term success of this strategy remains to be seen. Q: You've layered in additional conservatism into your guidance. What factors influenced this decision, and how do you see these impacting Q1 and future quarters? A: Todd McKinnon, CEO, explained that while Q1 was strong and on track, the guidance reflects a cautious approach due to macroeconomic uncertainties. Brett Tighe, CFO, added that while no macro impact was seen in Q1, the guidance includes potential risks due to the current economic environment, maintaining less conservatism than in previous models. Q: Can you elaborate on the go-to-market specialization and its impact on your business? A: Todd McKinnon noted that the specialization into Okta and Auth0 sellers is progressing well, with strong performance from Auth0 and a solid pipeline build. Eric Kelleher, COO, emphasized that specialization has proven effective in the past and is expected to enhance focus and enablement, benefiting both Okta and its customers. Q: How is the new suite-based pricing for the Okta platform performing, and what are the expectations? A: Todd McKinnon stated that the suite-based pricing introduced in Q1 is showing positive results, with customers opting for bundled products in good, better, best configurations. This approach leverages Okta's broad product portfolio and appeals to customers seeking strategic consolidation around identity. Q: What is the outlook for the customer identity side of the business, particularly with Auth0? A: Todd McKinnon highlighted that Auth0 had a strong Q1, driven by large customer deals. The introduction of Auth for GenAI is expected to further enhance demand, especially among smaller companies innovating in AI, indicating a broad-based opportunity for growth. Q: How does Okta plan to address the emerging market for non-human identities (NHIs) and AI agents? A: Todd McKinnon explained that Okta's comprehensive solution, including Identity Security Posture Management and Privileged Access, positions it well to manage NHIs. The company is focused on innovating and executing to maintain its lead in this growing market, emphasizing the importance of identity in AI-driven environments. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
