Okta, Inc. Q3 FY2026 earnings call

Todd McKinnon highlighted strong Q3 results with large customers and upsells of new products like Okta Identity Governance. Emphasized Okta's role in securing AI, including the launch of Auth0 for AI agents and early wins. Brett Tighe discussed go-to-market specialization, improving sales productivity, balance sheet strength, and investments in sales productivity, product innovation, and channel partners. Mentioned disciplined investment areas and expanding sales capacity.

No detailed financial performance for product segments with absolute terms and revenue contribution % provided in the transcript.

For FY 2026, raised outlook to total revenue growth 11%, non-GAAP operating margin 26%, and free cash flow margin ~29%. Q4 is seasonally the biggest quarter, and they are focused on executing well in Q4. FY 2027 guidance will be provided on the Q4 earnings call.

No detailed discussion of specific risks provided in the transcript.

Q: What convinces customers to consolidate IAM, governance, etc., to Okta?

A: Todd McKinnon said it's tied to other technological changes like AI adoption. Eric Kelleher added enterprises see value in a single control plane to manage identity across human, nonhuman, and agentic.

Q: Are AI capabilities applicable to any company even if not using Okta for core access management?

A: Todd McKinnon said customers are interested, and Okta's neutral platform is positioned to help.

Q: Commentary on guidance philosophy and business momentum?

A: Brett Tighe discussed business momentum from specialization, productivity improvements, and optimism about new products like Okta securing AI.

Q: Portfolio relevance to agentic commerce?

A: Todd McKinnon and Eric Kelleher talked about Auth0 for AI agents and Okta's platforms helping with agent build, discoverability, and authorization.

Q: Sales realignment and net retention?

A: Eric Kelleher discussed go-to-market specialization and Brett Tighe mentioned gross retention remains healthy with NRR in the 106 range.