Okta Builds AI-Agent Security Case on Strong Cash Flow
The identity software company is adding agent-security features, but a premium valuation ties its growth case to wider AI-agent adoption.
Key takeaways
- Okta unveiled additional AI-agent security features at Oktane 2026.
- Insider Monkey reported about $961 million in trailing 12-month free cash flow.
- The report cited a 123.71x trailing P/E and roughly 54x forward multiple.
Okta is expanding its security tools for AI agents, while generating about $961 million in trailing 12-month free cash flow, according to an Insider Monkey report. The company unveiled additional AI-agent security capabilities at Oktane 2026.
The new features build on Agent SSO, which became generally available in August. Okta aims to act as an identity-control layer for AI agents that need credentials, digital identities and access permissions.
The report said Okta's revenue grew 10.60% year over year in its second quarter of fiscal 2027, bringing revenue for the previous 12 months to $3.07 billion. It also cited $987 million in trailing operating cash flow.
Insider Monkey described Okta as a potential AI infrastructure play, with its AI strategy integrated into existing platforms rather than offered as a standalone product. But the report said wider adoption of AI agents would need to accelerate growth beyond its current trajectory.
The report cited a trailing P/E of 123.71 and a forward multiple of roughly 54, based on adjusted earnings expectations. It noted that the measures use different earnings bases and said the premium valuation leaves little margin for error.
This article was produced with the help of AI technology. Source: Yahoo Finance
