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Can Okta's Agent Identity Platform Capture the AI Security Opportunity?
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Key Takeaways
OKTA secured dozens of AI agent security deals in Q2 fiscal 2027, including several worth over $1 million.
OKTA added Agent Gateway, Agent SSO and Permiso to strengthen AI identity security and threat detection.
OKTA's partnerships with Anthropic, AWS and OpenAI support its AI identity security strategy.
Okta Inc. (OKTA - Free Report) is expanding its identity security platform to address the growing use of artificial intelligence (AI) agents in enterprises. As companies deploy AI agents across applications, cloud platforms and business workflows, they need tools to identify these agents, control their access and monitor their activities. Okta is positioning its agent identity platform to address these needs.
During the second quarter of fiscal 2027, Okta reported dozens of deals for its AI agent security products, including several deals worth more than $1 million. One notable win was a multimillion-dollar deal with a Fortune 50 healthcare company. The customer selected Okta to discover, secure and govern AI agents while managing access across human and non-human identities. Okta also won deals with a global consulting firm and one of the world's largest asset managers, highlighting demand across different industries.
Okta is expanding its product capabilities to support this opportunity. Its Agent Gateway enforces security policies at runtime and provides protection across different platforms and clouds. The company also introduced Okta for AI Agents Core for highly regulated environments and added Agent SSO capabilities to its core single sign-on product. In addition, Okta completed its acquisition of Permiso, a cloud-native identity security platform that detects threats involving human, non-human and AI agent identities. These initiatives are intended to improve visibility, access control and threat detection as enterprises deploy more AI agents.
Okta's existing customer base, broad product portfolio and vendor-neutral approach could help it compete in this market. The company serves more than 20,000 customers and is working with technology providers, including Anthropic, AWS and OpenAI, to support identity security across different platforms. However, AI agent security remains an early-stage opportunity. Management said the business was still too small to materially affect fiscal 2027 revenues, although it expects the opportunity to become more significant over time. Okta's ability to convert its growing pipeline into paid deployments will be important in determining whether its agent identity platform becomes a meaningful long-term growth driver.
OKTA Faces Tough Competition
Palo Alto Networks (PANW - Free Report) is expanding its AI security offerings through Prisma AIRS, which is designed to protect AI applications and agents. The platform covers areas such as agent identity security, activity monitoring and real-time enforcement of security policies. In the fourth quarter of fiscal 2026, Prisma AIRS surpassed $100 million in annual recurring revenue (ARR) within four quarters of general availability and had more than 800 customers. Palo Alto Networks is also using its broader security platform to address the growing need to protect AI workloads, networks and machine identities. This gives PANW an established position as enterprises look for ways to secure AI deployments.
CrowdStrike (CRWD - Free Report) is also expanding its security platform to address risks from AI agents. Its offerings include AI Detection and Response (AIDR), identity security and tools to protect endpoints and cloud workloads. In second-quarter fiscal 2027, CrowdStrike said AIDR's ending ARR nearly tripled from the previous quarter. Its next-generation identity business generated more than $585 million in ending ARR, up more than 33% year over year. CrowdStrike is also extending identity protection to AI agents through its continuous identity capabilities. These developments show how the company is using its existing cybersecurity platform to address new risks as AI adoption grows.
Shares of Okta have appreciated 157.5% year to date, outperforming the broader Zacks Computer and Technology sector’s 16.5% growth.
OKTA Stock’s Price Performance
Image Source: Zacks Investment Research
OKTA stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 51.71X compared with the broader sector’s 19.25X. Okta has a Value Score of F.
OKTA’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Okta’s fiscal 2027 earnings is currently pegged at $3.93 per share, unchanged over the past 30 days, suggesting 12.3% growth.
View the Zacks #1 Rank List
Image: Bigstock
Can Okta's Agent Identity Platform Capture the AI Security Opportunity?
Key Takeaways
Okta Inc. (OKTA - Free Report) is expanding its identity security platform to address the growing use of artificial intelligence (AI) agents in enterprises. As companies deploy AI agents across applications, cloud platforms and business workflows, they need tools to identify these agents, control their access and monitor their activities. Okta is positioning its agent identity platform to address these needs.
During the second quarter of fiscal 2027, Okta reported dozens of deals for its AI agent security products, including several deals worth more than $1 million. One notable win was a multimillion-dollar deal with a Fortune 50 healthcare company. The customer selected Okta to discover, secure and govern AI agents while managing access across human and non-human identities. Okta also won deals with a global consulting firm and one of the world's largest asset managers, highlighting demand across different industries.
Okta is expanding its product capabilities to support this opportunity. Its Agent Gateway enforces security policies at runtime and provides protection across different platforms and clouds. The company also introduced Okta for AI Agents Core for highly regulated environments and added Agent SSO capabilities to its core single sign-on product. In addition, Okta completed its acquisition of Permiso, a cloud-native identity security platform that detects threats involving human, non-human and AI agent identities. These initiatives are intended to improve visibility, access control and threat detection as enterprises deploy more AI agents.
Okta's existing customer base, broad product portfolio and vendor-neutral approach could help it compete in this market. The company serves more than 20,000 customers and is working with technology providers, including Anthropic, AWS and OpenAI, to support identity security across different platforms. However, AI agent security remains an early-stage opportunity. Management said the business was still too small to materially affect fiscal 2027 revenues, although it expects the opportunity to become more significant over time. Okta's ability to convert its growing pipeline into paid deployments will be important in determining whether its agent identity platform becomes a meaningful long-term growth driver.
OKTA Faces Tough Competition
Palo Alto Networks (PANW - Free Report) is expanding its AI security offerings through Prisma AIRS, which is designed to protect AI applications and agents. The platform covers areas such as agent identity security, activity monitoring and real-time enforcement of security policies. In the fourth quarter of fiscal 2026, Prisma AIRS surpassed $100 million in annual recurring revenue (ARR) within four quarters of general availability and had more than 800 customers. Palo Alto Networks is also using its broader security platform to address the growing need to protect AI workloads, networks and machine identities. This gives PANW an established position as enterprises look for ways to secure AI deployments.
CrowdStrike (CRWD - Free Report) is also expanding its security platform to address risks from AI agents. Its offerings include AI Detection and Response (AIDR), identity security and tools to protect endpoints and cloud workloads. In second-quarter fiscal 2027, CrowdStrike said AIDR's ending ARR nearly tripled from the previous quarter. Its next-generation identity business generated more than $585 million in ending ARR, up more than 33% year over year. CrowdStrike is also extending identity protection to AI agents through its continuous identity capabilities. These developments show how the company is using its existing cybersecurity platform to address new risks as AI adoption grows.
OKTA’s Share Price Performance, Valuation & Estimates
Shares of Okta have appreciated 157.5% year to date, outperforming the broader Zacks Computer and Technology sector’s 16.5% growth.
OKTA Stock’s Price Performance
Image Source: Zacks Investment Research
OKTA stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 51.71X compared with the broader sector’s 19.25X. Okta has a Value Score of F.
OKTA’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Okta’s fiscal 2027 earnings is currently pegged at $3.93 per share, unchanged over the past 30 days, suggesting 12.3% growth.
Image Source: Zacks Investment Research
Okta currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.