Okta’s identity-verification platform leverages artificial intelligence and machine learning to deliver cloud-native security solutions that customers increasingly view as essential. In the quarter ended October 31, 2025, the company’s remaining performance obligations—effectively the contracted future revenue from existing agreements—rose by 17% year-over-year to $4.29 billion. This growth underscores Okta’s ability to win long-term commitments in an environment where enterprises are accelerating cloud migrations and prioritizing real-time threat detection.

Okta now counts more than 5,000 enterprise customers that each spend at least $100,000 annually on its identity cloud services. Such large contracts contribute to a robust subscription margin profile and create significant revenue visibility. Customer retention remains above 95%, reflecting sticky demand for identity-and-access-management solutions. Analysts point to the company’s net dollar retention rate—well over 120%—as evidence that Okta is successfully upselling advanced AI-driven features to its existing customer base.

On January 5, 2026, Okta’s board approved a $1 billion share repurchase program, representing roughly 6.1% of its approximately $16.4 billion market capitalization. This authorization comes after shares declined nearly 28% from their 52-week high, prompting leadership to label the stock as undervalued. With over $1 billion in free cash flow generated over the past year, the company is well positioned to execute the buyback without compromising investments in R&D and AI infrastructure. The move signals confidence in Okta’s long-term growth trajectory and commitment to driving shareholder value.

Despite sustained double-digit growth in remaining performance obligations and customer spend, Okta’s forward price-to-earnings multiple sits near its lowest level since the company’s 2017 IPO, at approximately 25. This compares to an average forward multiple closer to 40 over the prior three years. The discount reflects temporary market pessimism, offering investors a chance to acquire exposure to a leading AI-driven cybersecurity provider at a more compelling valuation than peers in the enterprise software universe.