Okta (OKTA)

The largest independent identity provider — workforce and customer identity, now extended to securing AI agents

AI exposure 5% — derived from reported segment revenue, not asserted.

Where it sits

Software Stack → Cybersecurity · figures rebased to Q2 FY2027, reported 2026-08-26

Identity subscriptions are 98.5% of revenue and they are one thing — the identity layer of enterprise security, for workforce and customers — so Cybersecurity is the whole company rather than one leg of it; the professional-services line is implementation work attached to the same platforms.

Reported segments

• Subscription — 98.5% of revenue
• Professional services and other — 1.5% of revenue

Okta ($805M Q2 FY2027, +11% YoY; FY2027 guided $3.216-3.226B) — the largest independent identity provider. Subscription $793M (98.5%, +12%) + professional services and other $12M (1.5%, -33% as services move to partners). RPO $4.858B (+17%), cRPO $2.585B (+14%, from +12% a quarter earlier); 5,255 customers above $100K ACV; dollar-based net retention 107%. Primary B5 Cybersecurity, the identity layer: the Okta Platform for workforce identity and the Auth0 Platform for customer identity, extended to AI agents through Okta for AI Agents (generally available in Q2 FY2027) and Auth0 for AI Agents…

How the 5% is built

• Subscription — 98.5% of revenue × 5% AI-driven (estimate). The identity platforms are priced per user and per product; AI shows up as more identities to govern (agents, service accounts) and as Okta for AI Agents and Auth0 for AI Agents, which management says are immaterial to FY2027 revenue. Five points is that early demand, below the security peers that already monetise…
• Professional services and other — 1.5% of revenue × 0% AI-driven (estimate). Implementation work being handed to partners; no AI-driven component

Investment read

Moat. Identity sits underneath every application a company runs, so replacing it means re-wiring sign-in, provisioning and access policy across thousands of apps. Okta's 7,000+ pre-built integrations and its independence from any one cloud are what make that wiring practical. Dollar-based net retention of 107% says the base is sticky but not expanding quickly.

Bottleneck / pricing power. Not a bottleneck for AI compute or model build-out. Identity becomes a control point once agents act inside enterprises — each needs credentials, scoped access and an audit trail — but Microsoft, the hyperscalers and the security platforms all sell that too, so Okta's position is a choice customers make for neutrality, not a gate they cannot avoid.

Role in the AI stack. The independent identity layer — who and what gets access to applications, now including AI agents.

Connected companies

• Microsoft (MSFT) — OKTA competes with: Microsoft Entra ID, bundled with Microsoft 365, competes for workforce and customer identity — Okta's 10-K names Microsoft its principal competitor
• Palo Alto Networks (PANW) — OKTA competes with: Palo Alto's CyberArk acquisition brings privileged access and identity security into the platform, competing for the same budget as Okta Privileged Access and Identity Governance
• Cisco Systems (CSCO) — OKTA competes with: Cisco Duo competes in multi-factor authentication and access management, the entry point of Okta's workforce identity
• Amazon (AMZN) — OKTA is supplied by: AWS hosts the Okta and Auth0 platforms — Okta's service cells run in AWS regions
• Zscaler (ZS) — OKTA competes with: Okta identity and Zscaler's Zero Trust Exchange are integrated — SSO, SCIM provisioning and Shared Signals risk exchange — and sold as a zero-trust pairing
• CrowdStrike (CRWD) — OKTA competes with: CrowdStrike endpoint signals feed Okta Identity Threat Protection through the Shared Signals Framework, a jointly documented integration

Others in Cybersecurity

• Palo Alto Networks (PANW)
• CrowdStrike (CRWD)
• Fortinet (FTNT)
• Zscaler (ZS)
• Akamai Technologies (AKAM)

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