Okta, Inc. is capitalizing on increased enterprise demand for Artificial Intelligence (AI) security, extending its identity-security platform to AI agents and non-human identities. In Q2 of fiscal 2027, new products contributed approximately 30% of total bookings, with average annual contract values rising by about 40% for deals that included these innovations. Despite this growth, Okta noted that AI-related transactions, while significant, do not yet constitute a major portion of overall revenues.
Okta secured a multimillion-dollar deal with a Fortune 50 healthcare company and has seen rapid proliferation of AI agents within client systems, such as a recent increase from 50 to around 1,500 detectable agents. The company’s acquisition of Permiso bolsters its capabilities with nearly 400 native risk detections, enhancing post-authentication monitoring.
In the competitive landscape, Microsoft’s suite has quickly attracted a wide customer base with nearly 40 million registered agents, while CrowdStrike reported significant growth in annual recurring revenues across its AI and identity services. Okta’s share price has risen 92.3% year-to-date, far exceeding the 17.1% growth of the broader technology sector.
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