Okta AI Security Momentum: New Products Drive Growth

Okta is seeing increased momentum in its AI security offerings. The company is expanding its security platform to include AI agents and other non-human identities. What's interesting is that new products drove about 30% of bookings in the second quarter of fiscal 2027. These new product deals also showed roughly a 40% average increase in annual contract value. Okta is benefiting from growing enterprise demand for AI security. They are extending their platform beyond employees and customers to address the rapid deployment of agentic applications. This includes offerings like Okta for AI Agents and Identity Threat Protection. This expansion strengthens Okta's position against competitors like CrowdStrike and Microsoft. The company has closed dozens of AI-agent deals, including several million-dollar-plus transactions. While AI contributions are currently small, AI-related deal sizes are above the company average. The bottom line is that the rapid growth of AI agents could significantly boost future demand for Okta's security solutions.