Okta’s board of directors has authorized a program to repurchase up to $1 billion of Class A common stock, effective immediately. This move underscores the company’s confidence in its long-term growth prospects and view that current share levels do not fully reflect its market opportunity. With over $900 million in cash and short-term investments on the balance sheet as of the most recent quarter, Okta has the financial flexibility to execute this program while continuing to invest in product innovation and go-to-market expansion.

A leading sell-side firm raised its recommendation on Okta to Buy, highlighting 12 percent year-over-year revenue growth in the latest quarter and expanding GAAP profitability. The report notes a robust total backlog of contracted revenue, with current remaining performance obligations increasing by 20 percent year-over-year. Management’s growing emphasis on agentic AI—software capable of autonomous decision-making—could create a total addressable market greater than the combined workforce and customer identity segments. The firm projects that AI-driven identity services could drive an additional $500 million in annual recurring revenue by fiscal 2026.