Why Okta Stock Surged to a New 52-Week High Today
Key Points
Okta's identity protection solutions are growing even more valuable in the agentic AI era.
The company's free cash flow margins are already impressive.
- 10 stocks we like better than Okta ›
Shares of Okta (NASDAQ: OKTA) rocketed higher on Friday after the identity management leader highlighted its massive artificial intelligence (AI)-driven expansion opportunity.
Image source: Getty Images.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
This cyber sentinel is a cash-generating machine
Okta's revenue rose 11% year over year to $765 million in its fiscal 2027 first quarter, which ended on April 30.
Chief financial officer Brett Tighe said successful new product launches are helping the cybersecurity specialist win more business from corporate customers. He spotlighted Okta Identity Governance, which integrates access management, automation, and compliance tools into a single unified platform.
All told, Okta's adjusted net income increased 6% to $168 million, or $0.91 per share. That topped Wall Street's estimates, which had called for per-share profits of $0.85.
Better still, Okta continues to crank out free cash flow, to the tune of $271 million in the first quarter.
AI is expanding Okta's addressable market
Looking ahead, management guided for full-year revenue growth of roughly 10% to $3.2 billion, with adjusted earnings per share of $3.79 to $3.87 and free cash flow of $855 million to $885 million.
But what really got investors excited was management's comments about how agentic AI is fueling Okta's growth.
"AI agents are rapidly becoming a new workforce inside every organization, creating a wave of identities that must be secured and governed alongside human users," CEO Todd McKinnon said.
Okta, in turn, is investing strategically to position itself as an indispensable cyber guardian for AI agents.
"We're expanding our opportunity as the world's leading independent and neutral identity provider and helping customers make identity the unified control plane for their secure agentic enterprise," McKinnon said.
Should you buy stock in Okta right now?
Before you buy stock in Okta, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Okta wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $465,733!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,313,467!*
Now, it’s worth noting Stock Advisor’s total average return is 985% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 29, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Okta. The Motley Fool has a disclosure policy.
