Okta Shows Strong Earnings While CEO Highlights AI Potential

San Francisco, CA – Okta Inc. reported strong earnings for the third quarter of fiscal 2026, exceeding Wall Street’s expectations, but CEO Todd McKinnon noted that the impact of AI agents has yet to be fully realized in the company’s results.

Shares of the identity management provider fell over 3% in after-hours trading following the announcement made Tuesday. Okta’s revenues rose almost 12%, totaling $742 million, compared to $665 million from the same period last year. Net income surged to $43 million, nearly tripling from $16 million a year ago.

The company’s subscription revenues also increased by 11% to $724 million, beating the predicted $715 million. During the quarter, Okta launched new capabilities allowing businesses to automate tasks more efficiently. McKinnon explained in a CNBC interview that these AI agents have the potential to expand Okta’s market significantly over the next five years.

“It’s not in the results yet, but we’re investing, and we’re capitalizing on the opportunity like it will be a big part of the future,” said McKinnon.

For the current quarter, Okta forecasts revenues between $748 million and $750 million and adjusted earnings of 84 to 85 cents per share. Analysts have estimated $738 million in revenues and earnings per share of 84 cents.

The company’s remaining performance obligations, or subscription backlog, increased by 17% year-over-year to $4.29 billion, which surpassed analysts’ estimates of $4.17 billion.

Overall, 2025 has been a strong year for cybersecurity companies, marked by significant acquisition deals and product launches. Despite the dip in after-hours trading, Okta shares have seen an approximate 4% gain this year.

Okta executives will discuss the third-quarter results during a scheduled earnings call with investors and analysts at 5 p.m. ET.