In This Article:
Okta OKTA shares have declined 11% in a month, given a challenging macroeconomic environment due to higher tariffs. However, an innovative portfolio that includes Okta Identity Governance, Privileged Access, Device Access, Fine Grain Authorization, Identity Security Posture Management and Identity Threat Protection with Okta AI is expected to help OKTA shares surge in 2025.
Year to date, Okta shares have returned 29.3%, outperforming close competitors including Microsoft MSFT, International Business Machines IBM and CyberArk CYBR. Shares of International Business Machines and CyberArk returned 3.6% and 4.6%, respectively, while Microsoft fell 8.2% over the same timeframe.
OKTA Stock's Performance
Image Source: Zacks Investment Research
Okta rides on strong demand for new products, with more than 20% of fourth-quarter fiscal 2025 bookings from new products. OKTA’s innovative portfolio is helping the company win clients, driving top-line growth. It exited fourth-quarter fiscal 2025 with 19,650 customers and $4.215 billion in remaining performance obligations, reflecting strong growth prospects for subscription revenues. Customers with more than $100 thousand in Annual Contract Value increased 7% year over year to 4,800.
OKTA Benefits From Strong Demand for Identity Solutions
Okta’s offerings include Okta AI, a suite of AI-powered capabilities embedded across several products, which empowers organizations to harness AI to build better experiences and protect against cyberattacks. Okta Platform and Auth0 Platform are compatible with public clouds, on-premises infrastructures and hybrid clouds.
Customers use Okta Workforce Identity to manage and secure their employees, contractors and partners. Through the Customer Identity solution, Okta customers enable, manage and secure the identities of their customers. Identity Governance, Privileged Access, Device Access, Identity Security Posture Management, and Identity Threat Protection with Okta AI are other key solutions in the Okta platform. The Auth0 platform comprises of the Auth0 Platform, Fine Grain Authorization, Highly Regulated Identity and Self Service.
Okta recently announced the availability of Auth for GenAI in Developer Preview, as part of the Auth0 Platform, a suite of features that enable developers to integrate secure identity into GenAI applications. This ensures AI agents have built-in authentication, fine-grained authorization, async workflows, and secure API access. The new Okta Platform brings a unified, end-to-end identity security fabric to organizations for managing and securing all types of identities, from AI agents to API keys to employees.
Okta’s strong portfolio is helping it win market share in the cybersecurity domain against Microsoft, International Business Machines and CyberArk. It is also winning accolades. Gartner has placed OKTA higher than Microsoft and CyberArk in all use cases on the Gartner Critical Capabilities for Access Management. OKTA is the only vendor recognized as a Gartner Peer Insights Customers’ Choice for Access Management six times in a row.
Okta is benefiting from a rich partner base that includes the likes of Amazon Web Services (AWS), CrowdStrike, Google, LexisNexis Risk Solutions, Microsoft, Netskope, Palo Alto Networks, Plaid, Proofpoint, Salesforce, ServiceNow, VMware, Workday, Yubico and Zscaler. The company has over 7,000 integrations with cloud, mobile, and web applications and IT infrastructure providers as of Jan. 31, 2025.