Okta (OKTA) earnings Q1 2027
okta Beat Wall Street first quarter of fiscal year Predictions are being made after the ringer on Thursday as demand for identity security tools increases with the onslaught of artificial intelligence.
Shares gained 14% in value.
The company’s performance according to LSEG forecasts is as follows:
- earnings per share: 91 cents corrected, 85 cents expected
- Revenues: $765 million, expected $752 million
The identity security provider said revenue was up 11% from a year ago. Net income rose to $74 million, or 42 cents a share, from $62 million, or 35 cents a share, a year ago.
CEO Todd McKinnon He told CNBC that the agency AI structure is driving demand for Okta’s identity tools, but AI doesn’t yet account for the majority of its revenue.
“We’re playing a long game here,” he said. “This isn’t billions of dollars of token spending right now, it’s plumbing for things that will be needed over the next five and 10 years, so I feel like it’s less susceptible to enthusiasm.”
Currently, McKinnon said customers are starting to evaluate and plan ways to deploy AI at scale, which will benefit the business in the long run.
The proliferation of AI agents is drawing attention to tools that can help verify agents and protect companies from cyber threats. Intensifying these fears are Anthropic’s Mythos model, which in recent weeks has seen the company delay its full public release due to concerns that hackers could use the software to exploit vulnerabilities.
Software also faces a major reckoning as model makers introduce tools capable of jitter-coding applications and replace software as the service industry’s long-standing business models.
Okta is dedicating more resources to tools like Okta for AI agents and Net-zero for AI agents as companies embrace agency AI and demand greater security defenses, McKinnon said.
Guidance for the current quarter was roughly in line with forecasts. The company is forecasting $790 million to $794 million, compared to the expected $791 million.
Remaining performance obligations, which measures the subscription backlog and current remaining performance obligations or subscription backlog, exceeded estimates.
