Why Okta Stock Popped Today
Key Points
Okta saw strong sales and profit growth in its most recent quarter.
The identity platform could serve an important role in an AI-powered world.
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Shares of Okta (NASDAQ: OKTA) rallied on Thursday after the identity security and access management specialist highlighted a new, artificial intelligence (AI)-driven growth opportunity.
By the close of trading, Okta's stock price was up 11%.
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Solid Q4 results
Okta's revenue rose 11% year over year to $761 million in its fiscal 2026 fourth quarter, which ended on Jan. 31.
"Our strong performance this fiscal year was fueled by the continued trust of the world's largest organizations and the accelerating adoption of our new products, reinforcing the value of our unified identity platform," CEO Todd McKinnon said.
All told, Okta's adjusted net income jumped 18% to $167 million, or $0.90 per share. That topped Wall Street's estimates, which had called for per-share profits of $0.85.
Safeguarding the AI boom
Although cybersecurity stocks have come under pressure in recent weeks amid concerns about new AI-powered competition, McKinnon sees the technology more as an opportunity than a disruptive threat.
"AI is redefining the future of software and creating a critical need to secure AI agents, a challenge Okta was built to solve," McKinnon said. "As the only independent and neutral identity platform, we are uniquely positioned to secure every identity -- from humans to AI agents -- while providing our customers across the public and private sector the flexibility to innovate with confidence in the early stages of this new era."
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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.
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