Okta Inc

Four major infrastructure vendors have now shipped standalone agent governance products at general availability, a rush that has itself become the signal that agent governance is decoupling from individual platforms to become a category of its own. Okta pushed furthest into new territory with its July 2026 product innovations, shipping Agent-to-Agent Connections at general availability to enable secure multi-agent workflows through temporary runtime tokens that enforce which agents may invoke which others, alongside the Agent Gateway, available as a research release, which sits between agents and the systems they access without requiring code changes. IBM's Think 2026 announcement positioned next-generation watsonx Orchestrate as an agentic control plane, introduced in June on AWS and IBM Cloud, offering runtime policy management, credential health monitoring, and an Agent Access overview across an organization's entire agent estate. Broadcom embedded governance directly into the compute fabric with AgentMinder, unveiled at VMware Explore on August 31 and shipping at general availability bundled into the VMware Private AI Cloud, treating agents as enterprise-grade identities bound to a declared mission, permitted intents, approved tools, and authorized resources. Dataiku made a different architectural bet, with Dataiku Agent Management scanning agents across nine platforms including Microsoft Copilot Studio, Salesforce Agentforce, AWS Bedrock, and Google Vertex to provide a cross-platform control tower for discovery, certification, and audit-readiness. The urgency tracks to two numbers: Menlo Ventures found that 76 percent of AI applications are purchased rather than built internally, and the Cloud Security Alliance reported in February that 84 percent of organizations doubt they could pass a compliance audit focused on agent behavior or access controls.

Okta shares have returned +10.4% over the past month, outpacing the Zacks S&P 500 composite's -2% change, while the Zacks Security industry, to which Okta belongs, lost 7.8% over the same period. The cloud identity management company is expected to post earnings of $0.93 per share for the current quarter, a year-over-year change of +13.4%, and the Zacks Consensus Estimate has moved +6.2% over the last 30 days. For the current fiscal year, the consensus earnings estimate of $3.93 indicates a year-over-year change of +12.3% and has changed +9.8% over the last 30 days, while the next fiscal year's consensus estimate of $4.44 indicates a change of +13% and has changed +3.5% over the past month. Okta's consensus sales estimate of $815.52 million for the current quarter points to a year-over-year change of +9.9%, with the $3.22 billion and $3.55 billion estimates for the current and next fiscal years indicating changes of +10.4% and +10.1%, respectively. In the last reported quarter, Okta reported revenues of $805 million, up +10.6% year over year, and EPS of $1.05 versus $0.91 a year ago, beating the Zacks Consensus Estimate of $792.14 million by +1.62% on revenue and by +9.38% on EPS; the company is rated Zacks Rank #3 (Hold) and graded F on the Zacks Value Style Score.

Okta, Inc. shares surged as much as 29% after the identity security company beat fiscal second-quarter estimates, driven by AI-related security demand. Adjusted earnings per share came in at $1.05 versus $0.97 expected, and revenue rose 11% to $805 million versus $795 million expected. Net income totaled $116 million, up from $67 million a year earlier, and remaining performance obligations, a measure of backlog, climbed 17% to $4.86 billion, beating the $4.70 billion analysts anticipated. Okta made its "Okta for AI Agents" tool available to all customers during the quarter, with new products accounting for 30% of total bookings and "dozens" of AI-related deals closed, including a multi-million-dollar healthcare contract. The company raised full-year revenue guidance to $3.22 billion to $3.23 billion, and CEO Todd McKinnon said, "As AI agents transform every layer of technology, every agent needs a trusted identity."

A new report from ResearchAndMarkets.com, titled "Global Digital Identity & Trust Infrastructure Market 2026," reveals that 75% of surveyed consumers have enabled passkeys on at least some digital accounts, with 40% using them across most apps and accounts. The report, which profiles key players including Microsoft, Okta, Apple, Google, and 10 others, highlights that over 50% of surveyed organizations still rely primarily on password-based workforce sign-ins, indicating ongoing enterprise migration to passwordless authentication. Opportunities identified include enterprise migration to passkeys and biometrics, integrated identity platforms, interoperable digital IDs for commerce and public services, and stronger identity verification and fraud prevention against deepfakes and synthetic identities. The report also covers trends in identity governance, digital public infrastructure, and regional developments across the UK, Europe, GCC, United States, Brazil, China, India, and Singapore.

Palo Alto Networks is set to report its fiscal second-quarter earnings after the market closes on Tuesday, with analysts expecting revenue to grow 32.2% year over year, up from the 15.8% increase recorded in the same quarter last year. The cybersecurity platform provider beat revenue expectations last quarter with $3.00 billion in sales, up 31.1% year on year, and also impressed with stronger-than-expected billings and adjusted operating income. Analysts have generally maintained their estimates over the past month, and the company has a history of exceeding Wall Street's forecasts. In the cybersecurity segment, peers Qualys and Okta have already reported strong results, with Qualys revenue up 11% and Okta up 10.6%, both beating expectations, and their shares rose 13.8% and 26.5% respectively. Palo Alto Networks shares have gained 7.2% over the last month, and the average analyst price target stands at $364.01, slightly below the current share price of $372.19.

Wall Street ended the week in the green as investors digested blockbuster Nvidia earnings, policy signals from the Jackson Hole symposium, and the latest U.S. GDP print, which showed real GDP increased by 1.5% annualized from Q1 to Q2 2026. The Dow climbed 0.5%, the S&P 500 gained 0.5%, and the Nasdaq Composite rose 0.9%. Nvidia shares jumped more than 8.7% after the AI chip leader topped estimates and projected third-quarter revenue of $108 billion, with an early outlook for roughly 70% revenue growth in fiscal 2028. PayPal plunged 12.7% after a report that Advent and Stripe abandoned its acquisition pursuit, while Hims & Hers fell 8% on Visa penalties. Okta soared 29% on strong earnings, Salesforce surged 23% on AI-driven demand, and CrowdStrike jumped 21% after raising its revenue outlook.

Okta, Inc. reported second-quarter 2026 revenue of US$805 million and net income of US$116 million, and raised its fiscal 2027 guidance to full-year revenue of about US$3.22 billion, citing stronger-than-expected demand for its identity security platform. The company highlighted growing interest in tools securing autonomous AI agents, with new AI-focused products contributing meaningfully to bookings and helping define a new identity security category. The updated outlook, which projects revenue between US$3.216 billion and US$3.226 billion, is tied directly to the AI-agent security theme that lifted bookings this quarter. However, the decision to shift professional services to partners introduces a small growth headwind but could focus the business more tightly on higher-value identity products. Okta's narrative projects US$3.9 billion revenue and US$536.4 million earnings by 2029, requiring 9.6% yearly revenue growth and about a US$289.4 million earnings increase from US$247.0 million today, while some analysts expect even higher figures of US$4.2 billion revenue and US$795 million earnings by 2029.

CrowdStrike Holdings reported its best quarter in history, with fiscal second-quarter revenue reaching $1.47 billion, up 26% year over year, and adjusted earnings of 31 cents per share, beating Wall Street's estimate of 29 cents. The company added a record $332.8 million in new annual recurring revenue, a 51% jump, and raised its full-year revenue forecast to between $5.99 billion and $6.01 billion. Shares surged 20.5% on Thursday, lifting rivals like Palo Alto Networks, which gained nearly 13%, and Okta, which jumped over 28%. Analysts from Needham, Morgan Stanley, and Goldman Sachs raised their price targets, citing AI-driven demand for security as customers rebuild their stacks amid the 'Mythos moment' and agentic AI threats. CrowdStrike's Falcon Flex subscription bundle saw ARR surpass $2.29 billion, more than doubling from a year ago, with 935 new accounts added in the quarter.

Okta, Inc. jumped 28.6% on August 27 to close at $172.91 after reporting better-than-expected quarterly results, reaching a four-year high. The company's revenue rose 11% to $805 million, subscription revenue climbed 12% to $793 million, and current remaining performance obligations increased 14% to $2.585 billion, with free cash flow at $227 million. Okta also raised its full-year guidance, and analysts highlighted large-customer momentum and stronger performance in core identity products. CEO Todd McKinnon emphasized that every AI agent needs a trusted identity and clear controls, and Okta is building products to discover agents, secure their connections, govern their actions, and respond to incidents. However, management did not break out a standalone AI-agent revenue stream, and the quarter was still driven by familiar businesses such as workforce identity, customer identity, and Identity Governance. Insider Monkey's database showed 58 hedge funds holding OKTA as of Q2, up from 49 in Q1, and short interest stood near 6.45 million shares, about 3.89% of the public float.

Software and AI results dominated the week, with Nvidia's blowout quarter, a huge move higher for Salesforce, and strong numbers across cybersecurity, while PayPal shares declined. Nvidia rose 8.7% on Thursday after reporting fiscal second-quarter earnings of $2.22 per share on revenue of $96.2 billion, up 106% year-over-year, and guiding third-quarter revenue to $108 billion, plus or minus 2%, above the $104.2 billion analysts expected. Salesforce surged 22.6% on Thursday after second-quarter adjusted earnings of $5.90 per share smashed the $3.27 consensus, with revenue of $11.3 billion matching estimates and rising 11% year-over-year. Cybersecurity stocks Okta and CrowdStrike both delivered strong results, with Okta jumping 28.6% on Thursday and CrowdStrike rising 20.5% on Thursday. PayPal slid 12.5% on Friday after Bloomberg reported that a consortium of Advent International and Stripe had abandoned its pursuit of the payments company.

Shares of Dollar General Corporation gained 2.5% after reporting second-quarter fiscal 2026 earnings of $2.23 per share, beating the Zacks Consensus Estimate of $2 per share. Okta, Inc.'s shares surged 28.6% after reporting second-quarter 2026 earnings of $1.05 per share, surpassing the Zacks Consensus Estimate of $0.96 per share. Nutanix, Inc. shares jumped 6.8% after reporting fourth-quarter fiscal 2026 earnings of $0.6 per share, outpacing the Zacks Consensus Estimate of $0.48 per share. CrowdStrike Holdings, Inc. soared 20.5% after reporting second-quarter 2026 earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.29 per share.

The cloud gaming sector is poised for substantial growth, particularly within the traveler segment, as advancements in 5G technology, edge computing, and increased travel fuel demand for entertainment on the go. Projections indicate the market will grow from $3.2 billion in 2025 to $4.1 billion in 2026, with expectations to reach $11.03 billion by 2030. This expansion is driven by factors such as enhanced mobile connectivity, widespread adoption of portable gaming devices, and rising interest in subscription-based gaming services that provide low-latency, cross-device gameplay. Key trends include the integration of cloud gaming services in vehicles and the development of ultra-low-latency platforms, catering to consumers' desire for seamless, device-agnostic gaming experiences during travel. In other market news, Okta was a notable mover up 28.6% and closing at $172.91, near its 52-week high, after reporting increased earnings and revenue guidance for the full year, indicating a year-over-year growth rate of 10% to 11%. Everpure softened, down 8.9% to close at $99.24, after announcing significantly raised revenue guidance for fiscal year 2027, projecting 37% to 38% year-over-year growth. Oracle settled at $151.94 up 2.1%, Microsoft settled at $505.06 up 1.8%, and Alphabet ended the day at $340.65 down 0.4%.

Shares of enterprise software companies, including Amplitude, GitLab, Doximity, Freshworks, and Sprinklr, soared in afternoon trading after quarterly earnings and upbeat commentary indicated that artificial intelligence is boosting software adoption rather than disrupting legacy models. The sector-wide rally was fueled by strong results from Salesforce, CrowdStrike, and Okta, with Salesforce's AI-powered Agentforce reaching $1.5 billion in annual recurring revenue and Slackbot surpassing 1 million active users within five months. CrowdStrike CEO George Kurtz attributed momentum to AI expanding the attack surface, while Okta reported that AI-focused offerings drove about 30% of new bookings and increased average contract values by roughly 40%. Amplitude jumped 9.4%, GitLab rose 8%, Doximity gained 3.3%, Freshworks climbed 5.4%, and Sprinklr advanced 7.2%, with Salesforce surging 20%.

Enterprise software and SaaS stocks surged in the afternoon session after quarterly earnings and upbeat commentary signaled that artificial intelligence is driving growth rather than threatening legacy business models. ServiceNow jumped 9.8%, Zscaler 9.9%, SentinelOne 11.8%, Asana 8.1%, and Elastic 7.8%, following stronger-than-expected results from major tech firms. Salesforce's AI-powered Agentforce reached $1.5 billion in annual recurring revenue, and Slackbot surpassed 1 million active users in five months. CrowdStrike CEO George Kurtz attributed momentum to AI expanding the attack surface, while Okta said AI-focused offerings drove about 30% of new bookings and increased contract values by roughly 40%. The rally, highlighted by a 20% surge in Salesforce, reflects confidence that established vendors can capture value from AI deployment.

Okta's stock soared 28% in afternoon trading after the company reported better-than-expected second-quarter financial results and raised its full-year revenue outlook. The identity management firm posted revenue of $805 million, up 10.6% year-over-year, beating analyst estimates of $792.8 million, while adjusted earnings per share of $1.05 surpassed the consensus of $0.96. Operating margins expanded to 13.3% from 5.6% a year ago, driven by strong enterprise traction and surging demand for AI security, with new AI-focused offerings contributing about 30% of new bookings. Okta also announced the acquisition of cloud-native identity security platform Permiso and lifted its full-year revenue guidance to $3.22 billion at the midpoint, with adjusted EPS forecast raised to $3.92. The stock hit a new 52-week high of $170.84, up 104% since the start of the year.

Okta reported better-than-expected revenue for the second quarter of fiscal 2026, with sales up 10.6% year over year to $805 million, beating analyst estimates of $792.8 million. Adjusted earnings per share came in at $1.05, surpassing the consensus of $0.96. The company raised its full-year revenue guidance to $3.22 billion at the midpoint and lifted adjusted EPS guidance to $3.92. Management highlighted strong adoption of AI security products, which contributed about 30% of new bookings, and noted over 20% growth in large enterprise accounts with annual contract values exceeding $1 million. Okta also completed the acquisition of Permiso to enhance identity threat protection. The stock rose to $167.72 from $136.97 before the earnings release.

Nvidia surged 9% after second-quarter revenue and earnings beat expectations, with adjusted earnings of $2.22 per share on $96.22 billion in revenue, surpassing analyst estimates of $2.10 per share and $92.17 billion, and the company forecast third-quarter revenue of $108 billion. Salesforce soared 21% after adjusted earnings of $5.90 per share beat an LSEG estimate of $3.27, while Okta jumped over 27% on better-than-expected results and raised guidance. Veeva Systems climbed 16% on strong quarterly results and upbeat guidance, but HP fell 4% despite beating revenue estimates due to concerns over memory costs and margins. Moderna dropped 4% after proposing a $2 billion convertible notes sale, Celsius fell nearly 6% on a Deutsche Bank downgrade, and Wendy's tumbled 13% after reports that Trian Fund Management won't pursue a buyout. Dollar General rose 5% after raising full-year guidance, while Dollar Tree, Burlington Stores, Best Buy, and Hormel Foods declined on various earnings-related concerns.

Enterprise software and cybersecurity stocks rallied sharply on Thursday, driven by strong earnings and a shift in the AI narrative. The iShares Expanded Tech-Software Sector ETF (IGV) surged over 6%, on track for its largest single-day gain since April 9, 2025, when it jumped 11.7%. The rally began after Salesforce and CrowdStrike reported better-than-expected second-quarter results, with Salesforce CEO Marc Benioff declaring, "This nonsense of this SaaSpocalypse, I think it's time for it to stop." ServiceNow surged 9%, Workday rose nearly 4%, and Adobe and Autodesk each climbed 6%. Cybersecurity names led the gains, with CrowdStrike up 18%, Okta rocketing over 25%, and SailPoint surging nearly 14%. Palantir increased 4% as its Maven Smart System is on track to generate at least $1 billion in annual recurring revenue, while UiPath climbed nearly 9% ahead of its earnings report.

Pre-market futures are mixed this morning, with the Nasdaq up 240 points on strength from tech earnings, while the Dow is down 110 points and the S&P 500 is up 22 points. Salesforce, CrowdStrike, and Okta all posted double-digit gains after their earnings beats, and Nvidia's Q2 results exceeded expectations with record revenues and guidance for the current quarter above $100 billion for the first time ever, at $108 billion plus or minus 2 percent. Nvidia shares are up another 6.5 percent in early trading, adding to year-to-date gains of 12.4 percent. Weekly jobless claims came in at 203,000, 5,000 fewer than expected, keeping near 60-year lows, while continuing claims fell to 1.78 million. The advance trade balance in goods for July widened to a deficit of $118.8 billion, the deepest since March 2025, as imports surged to $318.2 billion. Wholesale inventories rose for the sixth straight month, up 1.3 percent month over month, and retail inventories jumped 0.7 percent.

Cybersecurity stocks rallied Thursday after Okta and CrowdStrike both reported fiscal Q2 2027 earnings beats, with Okta surging 22% and CrowdStrike jumping 13%. The First Trust NASDAQ Cybersecurity ETF rose 3% to $96.20, while the SPDR S&P 500 ETF gained just 0.3%. Okta reported revenue of $805 million, up 11% year over year, and adjusted EPS of $1.05, while CrowdStrike posted revenue of $1.47 billion, up 26%, with adjusted EPS of $0.31. CrowdStrike raised its full-year net new ARR growth outlook by 630 basis points, and Okta closed its purchase of Permiso Security for around $200 million. However, Okta's billings fell 5.4% to $681.2 million, a soft spot that may draw analyst questions. Peers Palo Alto Networks and Fortinet also rose on the read-through, with Palo Alto up 5% and Fortinet up 1%.

Okta reported second-quarter revenue of $805 million, up 11% from a year ago, beating analyst expectations and sending its stock up 20% in extended trading. The company delivered adjusted earnings of $1.05 per share, surpassing the forecast of 97 cents, while GAAP net income rose to $116 million from $67 million a year earlier. Subscription revenue grew 12% to $793 million, and remaining performance obligations climbed 17% to $4.86 billion, exceeding the anticipated $4.70 billion. Okta attributed the strong demand to the rise of AI agents, noting that new products made up 30% of total bookings and that it closed dozens of AI deals, including a multi-million-dollar contract with a healthcare company. The company also completed its acquisition of Permiso Security for around $200 million and raised its full-year revenue guidance to $3.22 billion to $3.23 billion, with adjusted earnings per share expected between $3.90 and $3.94.

In premarket trading, Nvidia shares surged over 7% after the AI infrastructure company beat expectations on both lines in the second quarter, reporting adjusted earnings of $2.22 per share and revenue of $96.22 billion, against analyst consensus of $2.10 per share and $92.17 billion, with third-quarter revenue guidance of $108 billion also exceeding forecasts. Dollar General jumped 12% after raising its full-year earnings guidance to between $7.80 and $8.00 per share, up from a prior range of $7.20 to $7.45, and announced plans to repurchase shares in the second half of its fiscal year ending January 29, 2027. HP dropped nearly 11% despite beating fiscal third-quarter estimates and providing above-consensus full-year guidance. Salesforce rose nearly 12% after reporting adjusted earnings of $5.90 per share, well above the LSEG estimate of $3.27. Okta climbed over 19% on second-quarter results that beat expectations, with adjusted earnings of $1.05 per share on revenue of $805 million, and raised its full-year guidance. CrowdStrike gained nearly 10% after its second-quarter results beat on revenue and earnings, with full-year guidance also topping estimates. Everpure rose nearly 3% after Bank of America upgraded it to buy from neutral, citing positive estimate revisions and revenue growth from internal hyperscaler use. Abercrombie & Fitch fell 1.4% after Citi downgraded it to neutral from buy, citing limited upside after a strong run.

CrowdStrike, Okta, and HP Inc. reported earnings after the bell, with shares moving sharply in opposite directions. CrowdStrike jumped after a strong second quarter, with revenue and adjusted earnings topping expectations and annual recurring revenue reaching almost $6 billion, also above estimates. The company raised its full-year revenue outlook, citing strong demand as AI-driven cyber threats grow. Okta also surged after raising its full-year outlook for a second time, now expecting revenue growth of 10 to 11% with a record subscription backlog, and noting that new products make up 30% of bookings. In contrast, HP Inc. plunged despite beating estimates on the top and bottom lines and issuing upbeat guidance, as investors worried about worsening PC and printer sales and rising memory chip costs leading to higher consumer prices.

Okta is scheduled to report second-quarter earnings on August 26 after the closing bell, with analysts anticipating a better-than-expected print. Wall Street has projected earnings of $0.96 per share, a 5.5% year-on-year jump, and revenue of $793.03 million, up nearly 9%, in line with management's guidance. The company also guided to current RPO growth of 11%, non-GAAP operating margin of 26%, and a free cash flow margin of 20% to 21% for the quarter. Analysts expect a beat given Okta's history of conservative guidance, having beaten EPS and revenue estimates 100% of the time over the last two years. Ahead of earnings, Wells Fargo upgraded Okta to Overweight from Equal-Weight, and Citizens upgraded it to Market Outperform from Market Perform.

Okta has appointed Scott Morgan as its new Chief Legal Officer, bringing in a legal leader with experience in technology growth and integrations. Morgan previously led legal functions at Splunk and played a key role in its expansion and integration into Cisco. The appointment comes as Okta develops AI-native identity security offerings and refines its governance and risk management approach. Okta operates as an identity partner in the US and internationally, with a market cap of about $24.5 billion.

Lightbits Labs announced native integration with Okta in its software release v3.20.1, streamlining storage security for enterprise customers including a major US-based financial services provider. The integration builds on Lightbits' existing federated authentication with Active Directory Federation Services, allowing organizations to manage cluster access through their standardized identity provider instead of maintaining local user accounts. Storage administrators can authenticate via the CLI using existing Okta identities, with REST API support planned, and cluster administrators can assign roles directly to Okta users and groups governed by corporate security teams. Lightbits Chief Technology Officer Abel Gordon said the expansion empowers customers, including major global financial institutions, to maintain rigid security postures while accelerating operational productivity.

Alibaba shares rose 1.5% premarket after Reuters reported the company is set to sell its Lingxi Games business to private equity firm Trustar Capital for more than $2 billion. Memory chipmakers gained after U.S. Commerce Secretary Howard Lutnick told the Wall Street Journal the Trump administration opposes Apple buying Chinese memory chips, with Sandisk up nearly 5% and Western Digital and Micron Technology up more than 3%. Intel added about 1.5% after CEO Lip-Bu Tan purchased more than 105,000 shares at $95 each, according to an SEC filing. SoFi Technologies rose 2% after Piper Sandler initiated coverage with an overweight rating, and Okta gained 1% after Wells Fargo upgraded the stock to overweight from equal-weight.

Okta and Master Concept were recognized for their collaboration in identity security for complex cloud and AI environments, with Master Concept receiving the Okta Catalyst Award for Strategic Excellence. The award highlights joint work across Asia and points to concrete business development and market expansion activity that adds to Okta's global identity security footprint. The collaboration also shows Okta's focus on environments where AI raises new identity security requirements, and the company is positioning itself as a neutral identity layer that can sit across large cloud providers like Google Cloud. For investors, a central question is how effectively Okta can convert this type of partner recognition into more durable customer relationships and a clearer role in securing AI-heavy workloads over time.

S&P 500 futures edged lower while Nasdaq futures ticked higher as investors weighed cooling inflation hopes against rising geopolitical risks. The June Consumer Price Index is expected at 3.8% year on year and monthly CPI is forecast to dip 0.1%, signaling some easing in the cost of living even as core inflation is seen steady at 2.9%. US 10-year bond yields sit near 4.62% and oil prices are being pushed around by Iran Strait of Hormuz tensions, raising questions about future borrowing costs and energy-sensitive sectors. Among top movers, CrowdStrike Holdings surged 12.14%, Tower Semiconductor jumped 11.24% after outlining a major Japan expansion of 300mm capacity for AI and data centers, and Okta gained 10.81%. On the losing side, International Business Machines fell 25.21% after multiple analyst downgrades, Biogen declined 8.17% as CELIA Phase 2 diranersen data raised safety questions, and Nebius Group fell 7.80% following New York's statewide moratorium on hyperscale data centers.

Okta shares jumped roughly 11% on Tuesday to close at $154.62, a gain of $15.09, after touching a fresh 52-week high of $155.55 during the session. The rally followed a wave of sell-side upgrades and price-target increases that frame Okta as a primary beneficiary of the growing need to secure AI agents and AI-driven workflows. KeyBanc reiterated a bullish stance and raised its price target, citing Okta’s leadership in securing AI agent identities across governance, runtime authentication, and gateways. Scotiabank upgraded Okta alongside several other cybersecurity names, arguing that frontier AI models are raising security risks and pushing chief information security officers toward larger budgets. Jefferies highlighted identity as a likely early Gen AI winner category within cybersecurity, naming Okta among the key players positioned to benefit.

Okta and Palo Alto Networks shares jumped after U.S. and international security agencies issued a joint warning about Russian state-sponsored cyber threats targeting critical infrastructure. Identity management company Okta rose 10.2%, while network security firm Palo Alto Networks gained 6%. The Cybersecurity and Infrastructure Security Agency, together with the NSA and FBI, released an advisory stating that Russian cyber actors are exploiting vulnerable networking devices and routers, with sectors such as communications, energy, government, and healthcare being targeted globally. The alert underscored the growing need for advanced security solutions, driving investor interest in cybersecurity stocks.

CrowdStrike stock surged more than 9% on Tuesday alongside other cybersecurity names after IBM warned that enterprise customers had shifted spending away from traditional software in the most recent quarter. The Global X Cybersecurity ETF jumped more than 6%, while Fortinet, Okta, and Palo Alto Networks also rose during the session. IBM CEO Arvind Krishna said clients moved quarterly capex toward servers, storage, and memory to secure supply-constrained infrastructure ahead of expected price increases, and that rapidly-evolving cybersecurity concerns also drew customer focus. Investors viewed the comments as a sign that businesses were not cutting back on cybersecurity despite their spending on AI, benefiting pure-play firms like CrowdStrike, whose stock is up more than 90% year-to-date.

Vonage, part of Ericsson, has launched the Vonage Protection Suite for Okta, a pre-built, self-service connector that enables Okta's enterprise customers to send one-time passwords with integrated advanced fraud protection powered by the mobile network. The solution combines Vonage Verify's intelligent routing and delivery with fraud protection through Identity Insights and Fraud Defender, validating phone numbers before OTP delivery to detect high-risk or compromised numbers and providing real-time fraud protection during delivery. It includes automatic SMS-to-Voice fallback, intelligent carrier routing, and automatic sender ID management for regulatory compliance. Available now through the Vonage Cloud Runtime Marketplace across more than 200 countries, the connector allows organizations to go from setup to first OTP delivery in minutes without custom development.

Shares of identity management company Okta jumped 3.4% in morning trading after Scotiabank upgraded the stock to Outperform from Sector Perform and set a $165 price target. The firm views Okta as a beneficiary of artificial intelligence trends, expecting businesses to increase cybersecurity spending and modernize identity management systems as they prepare for AI. The move marks a new 52-week high for Okta, with shares up 76.9% year-to-date.

Cybersecurity stocks rallied Monday after Scotiabank upgraded Okta to Outperform with a $165 price target, framing identity vendors as AI beneficiaries. CrowdStrike shares rose 5%, Palo Alto Networks gained 4%, and Okta climbed 4%, while the Amplify Cybersecurity ETF advanced 3%. Okta CEO Todd McKinnon argued that AI agents are becoming a new enterprise workforce, creating a wave of identities that must be secured alongside humans. CrowdStrike and Palo Alto have surged 76% and 97% year to date, respectively, though their fundamentals support the AI-security thesis.

T-Mobile and Gilead Sciences both received Buy upgrades on Monday, with Bank of America setting a $220 target on T-Mobile and HSBC setting a $155 target on Gilead. Pfizer was downgraded to Hold from Buy at HSBC, which trimmed its target to $28 from $32, while Datadog was cut to Market Perform from Outperform at Bernstein, though its target was raised to $226 from $180. Among other notable calls, Agnico Eagle Mines was upgraded to Buy at Jefferies with a $200 target, Okta was raised to Outperform at Scotiabank with a $165 target, and Delta Air Lines was cut to Outperform from Strong Buy at Raymond James with a target lifted to $104 from $80. New initiations included ERock with Outperform ratings from Evercore ISI and JPMorgan at a $28 target, and Glaukos with a Buy rating at H.C. Wainwright and a $168 target.

Cybersecurity stocks reported satisfactory first-quarter results, with aggregate revenues beating analyst consensus estimates by 1.6% and next-quarter revenue guidance in line. Okta posted revenue of $765 million, up 11.2% year-over-year and exceeding expectations by 1.7%, while Palo Alto Networks delivered the fastest revenue growth among peers at 31.1% to $3.00 billion, beating estimates by 2%. SentinelOne was the weakest performer, with revenue of $276.7 million, up 20.8% year-over-year but in line with estimates, and its billings and guidance missed expectations. Zscaler reported revenue of $850.5 million, up 25.4% year-over-year and topping estimates by 1.8%, and Varonis Systems posted revenue of $173.1 million, up 26.9% year-over-year and beating estimates by 4.6%, the biggest beat among the group. Since reporting, cybersecurity stocks have averaged a 16.7% share price increase.

Shares of Palo Alto Networks, CrowdStrike, and Okta rallied sharply Monday, extending strong year-to-date gains, after a UBS forecast projected 13% growth in the global cybersecurity market this year to $240 billion. Palo Alto Networks surged 9% to $331.91, CrowdStrike rose 7% to $747.84, and Okta gained 5% to $130.23, with year-to-date advances of 79%, 59%, and 51% respectively, far outpacing the NASDAQ 100's 16% gain. The UBS note, which did not assign new ratings or price targets, estimated the broader security and safety market would reach $974 billion in 2026 and $1.19 trillion by 2029, with cybersecurity as the largest growth driver. The rally also reflects a broad risk-on rotation into high-beta software names, though valuations remain stretched, with Palo Alto Networks trading at a trailing price-to-earnings ratio of 283.51 times and CrowdStrike at a forward multiple of 143 times. CrowdStrike's 4-for-1 stock split is set to take effect July 2, a potential catalyst for retail demand and short-term volatility.