Okta Reports Higher-Than-Expected First-Quarter Revenue and Earnings

Okta reported fiscal first-quarter results after the market close on Thursday that exceeded Wall Street estimates. The company posted adjusted earnings per share of 91 cents on revenue of $765 million. Analysts polled by LSEG had projected 85 cents per share and $752 million in revenue.

Revenue rose 11 percent from a year earlier. Net income increased to $74 million, or 42 cents per share, from $62 million, or 35 cents per share, in the same quarter last year.

McKinnon told CNBC that agentic AI is increasing demand for identity security tools. He said the company is allocating additional resources to products such as Okta for AI agents and Net-zero for AI agents. McKinnon described the current period as an early planning phase for customers deploying AI at scale.

He said Okta is "playing a long game" and that AI-related work is not yet a majority of revenues. The company issued current-quarter revenue guidance of $790 million to $794 million, roughly in line with the $791 million consensus estimate. Remaining performance obligations and current remaining performance obligations both topped estimates.