Okta's AI Identity Security Drives Growth & New Bookings

Okta recently reported 11% year-over-year revenue growth, driven by its subscription business. The company also improved operating margins to 7%. What's interesting is that AI agent deals and new products now represent a meaningful share of bookings and their largest-ever product pipeline. AI-related products account for roughly 25% of new bookings, with AI agent deals showing larger average contract sizes. This shows AI-driven identity offerings are becoming a core part of Okta’s business, moving the company toward higher-value, software-based security solutions for emerging AI uses. Okta's narrative projects 3.9 billion dollars in revenue and 551.2 million dollars in earnings by 2029. This means 9.6% yearly revenue growth and an earnings increase of about 304 million dollars from 247 million dollars today. Some analysts have more pessimistic views, with revenue reaching only 3.6 billion dollars and earnings falling to about 31 million dollars. The bottom line is that Okta's strong AI product pipeline could reshape its investment narrative, but execution risk and competitive pressure remain important factors.