Expanding Portfolio Drives Okta's Clientele: More Upside Ahead?

Okta OKTA prospects benefit from an expanding clientele, driven by an innovative product pipeline and strong demand for Identity solutions. Customers with more than $100K in Annual Contract Value increased 6% year over year to 5,100. OKTA ended fiscal 2026 with more than 20,000 customers.

Okta’s strong portfolio includes new offerings such as Okta Identity Governance, Okta Privileged Access, Okta Device Access, Identity Security Posture Management, Identity Threat Protection with Okta AI, Fine-Grained Authorization, Auth0 for AI Agents and Okta for AI Agents. These new solutions are helping OKTA gain market share and drive top-line growth. These new products represented 30% of the fiscal fourth-quarter bookings.

Okta’s neutral and independent identity solution secures and governs the entire agentic life cycle. It gives customers the freedom to deploy on any agent platform without ecosystem lock-in. Auth0 and Okta for AI Agents treat AI agents with the same importance as humans, providing customers with everything they need to securely deploy agentic AI technology.

The company recently introduced a security framework called the Blueprint for the Secure Agentic Enterprise, which is designed to secure enterprises in deploying agentic AI. Okta has highlighted that 88% of enterprises have already faced AI agent security incidents, while only 22% treat agents as identities. The newly introduced Blueprint works by detecting known and shadow AI agents and registering them as first-class identities.

OKTA Faces Tough Competition

In the security domain, Okta is facing stiff competition from the likes of SentinelOne S and Broadcom AVGO.

While OKTA offers cloud-based identity solutions, SentinelOne focuses on endpoint security, cloud security and threat detection through its Singularity Platform, which leverages a unified security data lake and Purple AI, its Generative AI (GenAI) engine. Singularity, a complete AI-native platform, benefits from SentinelOne’s AI and automation-driven approach.

Broadcom offers Endpoint Security (Symantec and Carbon Black), Network Security, Information Security, Application Security (Carbon Black) and Identity Security solutions. AVGO’s focus on delivering AI-powered, proactive security to stay ahead of evolving cyber threats has been noteworthy.

OKTA’s Share Price Performance, Valuation & Estimates

Okta shares have lost 9.4% year to date, underperforming the broader Zacks Computer and Technology sector’s drop of 6.3% but outperforming the Zacks Security industry’s plunge of 12.2%.

OKTA Stock’s Performance

Image Source: Zacks Investment Research

The Okta stock is undervalued, as suggested by a Value Score of D. In terms of forward 12-month price/sales, Okta shares were trading at 4.31X higher than SentinelOne’s 3.92X but lower than Broadcom’s 12.31X.

OKTA vs. SentinelOne Valuation

Image Source: Zacks Investment Research

OKTA vs. AVGO Valuation

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $3.77 per share, up 3.6% over the past 30 days, suggesting 7.7% growth from the fiscal 2025 reported figure.

Okta, Inc. Price and Consensus

Okta, Inc. price-consensus-chart | Okta, Inc. Quote

Okta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SentinelOne, Inc. (S): Free Stock Analysis Report

Broadcom Inc. (AVGO): Free Stock Analysis Report

Okta, Inc. (OKTA): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research