Shares of Okta (OKTA 2.35%) 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.
NASDAQ: OKTA
Key Data Points
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."
