Okta Q4 Revenue Beats Estimates; 30% of Bookings From New AI Security Products
Okta reported Q4 revenue of $761M, 11.6% YoY, beating estimates by 1.6%, with adjusted EPS of $0.90, up 6.3% over forecasts, driven by 30% of bookings from new identity governance and AI security products. Guidance for Q1 revenues of $751M trails analyst forecasts, while FY27 EPS is projected at $3.78.
1. Q4 Financial Highlights
Okta posted revenue of $761 million in Q4, an 11.6% increase year-over-year that beat analyst estimates by 1.6%. Adjusted EPS reached $0.90, topping forecasts by 6.3%, while operating income rose to $202 million on a 26.5% margin.
2. New Product Contributions
Management highlighted that recently launched identity governance and AI security offerings accounted for about 30% of Q4 bookings, underpinning accelerated enterprise deal momentum and contributing to annual recurring revenue growth to $3.00 billion, up 11.8% year-over-year.
3. Guidance and Projections
For Q1 FY2026, Okta guided to $751 million in revenue at the midpoint, slightly below consensus, while projecting FY2027 adjusted EPS of $3.78, a 2.9% advantage over analyst expectations, signaling confidence in long-term profitability expansion.
4. Analyst Questions Spotlight
Key analyst inquiries centered on AI agent pricing strategies, go-to-market adjustments for international expansion, identity security differentiation against competitors, and the role of industry standards in cross-app access—insights that reveal management’s focus on strategic growth levers.