Aug 26, 2026 earnings call — AI agents and product expansion drive momentum
Okta said new products were ~30% of bookings and reported dozens of AI deals, while Q3 revenue growth guidance is 10%.
Revenue $0.8B (est $0.8B) · EPS $1.05 (est $0.96)
Key quotes
"those advantages are translating into customer demand reflected in the dozens of AI deals we won in Q2."
"Okta Identity Governance was once again the leading contributor. On average, the ACV uplift when any of the new products are included in a deal is about 40%."
"Strength with large enterprise customers was punctuated by over 20% growth in $1 million-plus ACV customers."
Analyst Q&A 16
AI agents product impact
Q (Eric Heath · KeyBanc): How much is the Anthropic partnership helping Okta for AI agents and how much uplift are you seeing on those deals? Also, how many agents versus humans are there so far?
A: Management said Okta is well positioned in the ecosystem and that Okta for AI agents had dozens of deals this quarter including several million-dollar-plus deals, but it's still too small to show up in the numbers yet. They expect growth over the next couple of years and are optimistic about the opportunity.
"And as exciting as that is, Okta for AI agents, it's still -- it's too small to show up in the numbers right now." — Todd McKinnon (CEO)
competition and customer confusion
Q (Grant Darling · Jefferies): What are you seeing in competitive bake-offs and customer decision-making? Are customers confused or coming to you directly?
A: Management said the biggest competitor is customer confusion and Okta focuses on clarity by working closely with customers and quickly iterating product road map. They called identity foundation a "no regrets" investment—customers must know where agents are, what they can connect to, and what they can do.
"The no regrets decision is you have to have this foundation of where are my agents, what can they connect to and what can they do?" — Todd McKinnon (CEO)
when AI revenue becomes meaningful
Q (John DiFucci · Guggenheim): When will AI agent work turn into meaningful revenue — will customers act proactively or only after a big breach?
A: Management said bookings and pipeline are strong and the product is generally available, which helps cut through confusion. They noted the product went GA 90 days ago and they've shipped many enhancements; conversion timing is uncertain but they are working to convert the record pipeline.
"We've shipped 24 significant enhancements to that product in the last 2 months." — Todd McKinnon (CEO)
drivers of cRPO acceleration
Q (Matthew Hedberg · RBC): What is driving the 200 basis points cRPO acceleration and are deal cycles faster with AI concerns?
A: Management ranked drivers: large enterprise strength (noting 22% growth in $1 million-plus customers), breadth of Okta's product platform and new products, and AI conversations catalyzing other product deals. They said AI discussions can accelerate broader identity consolidation and upgrades.
"The first #1 thing is large enterprise. You see the 22% growth in $1 million-plus customers." — Todd McKinnon (CEO)
legacy migrations and core demand
Q (Joshua Tilton · Wolfe): Are customers migrating from legacy identity now because they want future AI readiness, and is the 15% bookings growth durable when AI layers in?
A: Management said agent exposure is starting many conversations that expand into identity migrations and other portfolio areas, which helps drive bookings. They gave a concrete M&A example where AI discussions led a retailer to consolidate an acquired company's legacy identity onto Okta.
"your question around legacy migrations are people looking to the future and ensuring they have the Identity Security Fabric, the platform that can solve all those use cases, that's absolutely part of the conversations that we're seeing evolve with customers." — Eric Kelleher (COO)
guidance assumptions for cRPO
Q (Rudy Kessinger · D.A. Davidson): Does Q3 cRPO guidance assume the stronger conversion and execution seen in Q1 and Q2 continues, or stick to the same cautious assumptions?
A: Management said they are applying the same guidance philosophy they have used for several quarters and are getting closer to the pin. They noted Q1 and Q2 were strong but there is no change in their guidance approach for Q3.
"So when we think about the guidance going forward, we're applying the same guidance philosophy we have for several quarters now." — Brett Tighe (CFO)
startups vs proven vendor
Q (Shrenik Kothari · Baird): Are customers wary of small AI-first vendors and is that pushing them toward Okta as a scaled independent platform? Also, is simplified agent pricing helping evaluations?
A: Management said customers worry about uncertainty and prefer Okta because it's proven with long-term continuity and neutrality across evolving stacks. They added startups often pivot and lack end-to-end maturity, while Okta's GA product, comprehensive vision and fast iteration resonate with CIOs and CISOs.
"they have confidence in our ability to work with them for the long term as well, not just for the short term." — Eric Kelleher (COO)
competition from big tech
Q (Steven Koenig · Macquarie): Do Microsoft, Salesforce, ServiceNow overlap or compete with Okta for AI agents? How are you differentiated?
A: Management said Microsoft appears to be copying Okta's approach but will struggle to be neutral across other clouds and providers. ServiceNow and Salesforce approach the problem from their lanes, and Okta's lane — connecting people to technology and multiple vendors neutrally — is uniquely strong after 17.5 years.
"I think Microsoft is copying us, which I think they have been for 15 years." — Todd McKinnon (CEO)
OIG and new product strength
Q (Trevor Rambo · BTIG): How did OIG perform this quarter and are you seeing net new lands or mostly expansions?
A: Management said the new product portfolio outperformed and OIG is the biggest part of that bucket. They noted products are increasingly sold as an integrated suite rather than stovepiped point products, and that integration and multi-year work is resonating with customers.
"The whole new product portfolio is super strong. OIG is the biggest bucket in there." — Todd McKinnon (CEO)
Permiso acquisition value
Q (Jonathan Ho · William Blair): How does Permiso expand your product set and what does post-auth behavioral detection opportunity look like in an AI world?
A: Management said identity threat protection is differentiated and important but not widely adopted yet; Permiso brings many more native risk detections and stronger machine learning and threat research to extend Okta's advanced identity threat protection for users and agents. They said the acquisition just closed.
"So instead of 90 native risk detections, they have 400 native risk detections." — Todd McKinnon (CEO)
pricing for growing agent counts
Q (Yun Suk Kim · Loop): As agent counts grow fast, how are you pricing Okta for AI agents and are numbers staged or capped for renewals?
A: Management said their current pricing model is per user as an uplift to per-user charge, which customers prefer for predictability and value alignment today. They added they are preparing frameworks for consumption-based pricing and caps (for example on agent SSO) that they may use in the future.
"So our pricing model is per user. So if you want to buy Okta for AI agents, it's an uplift to your per user charge." — Todd McKinnon (CEO)
CIAM and developer adoption
Q (William Kingsley Crane · Canaccord): How important is it for Okta to be the default for developers and appear in AI toolsets and examples?
A: Management said it's super important to be visible inside LLMs and tool leaderboards because agents search for tools. They are focusing on showing up in those environments and have made significant progress over the last 6 months.
"You have to show up in the LLMs, you have to show up -- agents are searching for tools." — Todd McKinnon (CEO)
AI contribution to outlook raise
Q (Mark Cash · Raymond James): How much of your recent outlook raise was due to AI contribution?
A: Management said AI contribution to the FY '27 outlook remains immaterial and very small since it's early innings, though they think AI could be material in fiscal '28 and beyond if momentum continues.
"Still immaterial. Still very small. We're very early innings." — Brett Tighe (CFO)
PAM vs broad IDP for agents
Q (Junaid Siddiqui · Truist): Does agentic identity make PAM more strategic and could it drive PAM from cross-sell to a main product?
A: Management said the PAM-and-agent link was overemphasized; agents need privileged access sometimes but agent identity should start from a broad identity provider. PAM is too narrow as a starting point; starting with the IDP offers traceability and better chain-of-command controls.
"I think that this association between PAM and Agentic is maybe -- was overemphasized." — Todd McKinnon (CEO)
agent SSO in core SSO and upsell
Q (William Vandrick · Scotiabank): Does adding agent SSO to core SSO give customers a taste of Okta for AI Agents, and what drives upsell to the full product?
A: Management agreed it spreads the core directory foundation for agent identity widely and said upsells include policy, governance, software gateways and other key features. They also stressed the move helps standardize agent single sign-on across the industry via Cross-App Access.
"It's spreading the kind of the core, core foundation of Okta for AI Agents, which is the directory entry that tracks the identity of an agent that puts that everywhere, ubiquitous." — Todd McKinnon (CEO)
public sector demand and mandates
Q (Jack Fyda · UBS): What is baked into Q3 guidance for federal demand given DoD mandates and IL5 certification, and how big is public sector now?
A: Management said public sector and U.S. federal are important with strong momentum; they noted public sector is less than 10% of revenue today so there is room to grow. They also said federal spending normalized after earlier uncertainty and there are many large opportunities ahead.
"It's only -- it's less than 10% of our business right now." — Todd McKinnon (CEO)