Okta Q3 FY2026: Solid Growth and a Sharper Focus on Securing AI Agents

Okta has reported third-quarter fiscal 2026 results that show moderate double-digit growth and improved profitability, while positioning identity security as a control point for emerging AI use cases. For the quarter ended October 31, 2025, total revenue reached 742 million dollars, up 12 percent year-over-year, with subscription revenue rising 11 percent to 724 million dollars. Remaining performance obligations (RPO) grew 17 percent to 4.292 billion dollars, and current RPO increased 13 percent to 2.328 billion dollars.

On a GAAP basis, Okta reported operating income of 23 million dollars, compared to a 16-million-dollar operating loss in the same period a year earlier. GAAP net income was 43 million dollars, up from 16 million dollars, while non-GAAP operating income rose to 178 million dollars and non-GAAP net income to 152 million dollars. Free cash flow was 211 million dollars, representing 28 percent of revenue, and the company ended the quarter with 2.463 billion dollars in cash, cash equivalents, and short-term investments after retiring the remaining principal on its 2025 notes.

In prepared remarks accompanying the release, CEO Todd McKinnon highlighted ongoing traction with large customers and newer offerings such as Okta Identity Governance. He also framed identity as a security foundation for AI, stating that Okta’s modern, neutral identity platform enables companies to safely build, manage, and govern every identity, including agents, and adding that Okta secures AI as the company rolls out products like Auth0 for AI Agents. According to McKinnon, AI agents are beginning to redefine how organizations work, and Okta aims to be key to securing this technology transformation.

The company’s guidance reflects cautious optimism. For the fourth quarter of fiscal 2026, Okta expects revenue of 748 to 750 million dollars (about 10 percent year-over-year growth), current RPO growth of roughly 9 percent, and a non-GAAP operating margin of about 25 percent. For the full fiscal year, Okta projects approximately 2.906 to 2.908 billion dollars in revenue, an 11-percent increase over fiscal 2025, and a non-GAAP free-cash-flow margin of about 29 percent.

The quarter reinforces Okta’s messaging that identity infrastructure is central to governing AI agents, machine identities, and access to AI-driven applications. Recent blog posts and strategy materials describe an identity security fabric approach that ties authentication, authorization, governance, and threat signals together, with AI workloads and agents treated as first-class identities to be governed alongside human users and traditional applications.

Sources: Financial Times Markets, Okta Investor Relations, Okta blog

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By the ID Tech Editorial Team