Okta, Inc. Q4 FY2026 earnings call

• Todd highlighted the strong finish to FY26 with continued strength in large enterprises, partner engagement, and new products. The new products' portfolio is growing, with AI products like Auth0 for AI Agents and Okta for AI Agents showing early success. He also shared priorities for FY27 including Okta Secures AI, increasing focus on large customers, and becoming the default identity security solution for the U.S. federal vertical and highly regulated industries. - Brett mentioned closing FY26 achieving Rule of 40, Q4 had a record total contract value of nearly $1.3 billion and surpassed $3 billion in annual contract value. Channel partners were engaged in 18 of top 20 deals in Q4 and AWS Marketplace generated over 45% growth in FY26. Balance sheet is healthy with over $2.5 billion in cash, etc., and announced a $1 billion share repurchase program.

The portfolio of new products, including Okta Identity Governance, Okta Privilege Access, Identity Security Posture Management, Identity Threat Protection, Okta Device Access, Fine Grain Authorization, Auth0 for AI Agents, and Okta for AI Agents, represented approximately 30% of Q4 bookings. Okta Identity Governance has over 2,000 customers. The new products, especially the AI - related ones, are driving growth with an average contract uplift of approximately 40% when included in a deal.

• For Q1 FY27, expected total revenue growth of 9%, current RPO growth of 10%, non - GAAP operating margin of 23% - 24%, and free cash flow margin of 33% - 35%. - For FY27, expected total revenue growth of 9%, non - GAAP operating margin of 25% - 26%, and free cash flow margin of 27% - 28%. - One - point impact from shifting professional services to partners, one - point headwind from lower interest income, and updated non - GAAP tax rate assumption to 21% from 26% based on federal tax law changes.

Q: Joe Gallo at Jefferies asked about pricing of AI agent products and when agentic will be meaningful to growth.

A: Brett said agentic products are important, Q4 new bookings from new products were 30%, agentic products are new but off to a big start, and they could be a huge upside source.

Q: Adam Borg at Stiefel asked about go - to - market changes and international growth.

A: Todd said go - to - market structure is in place, seeing productivity ramping, adding capacity, and international opportunity exists.

Q: John DeFucci at Guggenheim asked about competition in identity market.

A: Todd and Eric said there's confusion about identity infrastructure and security, Okta is the only one doing both infrastructure and security at the agentic layer.

Q: Josh Tilton at Wolf asked about subscription guide conservatism.

A: Brett said it's based on market conditions.

Q: Roger Boyd at UBS asked about pricing of AI agent products.

A: Todd said there's a feedback loop on pricing, two ways to charge for agents.

Q: Matt Hedberg at RBC asked about structural advantages over upstarts.

A: Todd said high cost to build alternatives, customers want to standardize on key infrastructure.

Q: Todd Weller at Stevens asked about Auth0's growth and AI as a catalyst.

A: Todd said excited about Auth0, SCIAM market is evolving.

Q: Brian Essex at JPMorgan asked about velocity of AI agent product segments.

A: Todd said both Auth0 and Okta for AI agents have positive reception.

Q: Eric Heath at KeyBank asked about customers evaluating alternatives for AI agent deals and 40% uplift.

A: Todd said customers are early adopters, reticent to trust startups, and 40% is on the entire contract.

Q: Shrena Kothari at Baird asked about expanding non - human identity tab.

A: Todd said agentic is a superset of non - human and a massive TAM.

Q: Greg Powell at BTIG asked about consistency drivers and visibility.

A: Todd and Brett said large deals, large customers, and more confident now.

Q: Kingsley Crane at Canaccord asked about standards war for agentic.

A: Todd said standards are important but not our standard needing to win.

Q: Mike Sikos in Needham asked about friction points and gating factors for agentic.

A: Todd said pace of AI adoption and lack of reference architecture.

Q: Rob Owens at Piper asked about DBNRR and growth.

A: Todd and Eric said gross retention is stable, depends on new business and upsell.

Q: Peter Levine at Evercore asked about professional services linearity.

A: Brett said more impact as year goes on.

Q: Patrick Coble at Scotiabank asked about op margin guide and growth focus.

A: Todd and Brett said disciplined on cost, focused on capturing TAM.

Q: Janae DeTruist asked about suite - based pricing reception.

A: Todd said suite - based pricing resonates with customers, helps larger transactions and faster deal closure