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Identity Security Demand Surges as Enterprise AI Deployments Accelerate

Okta beat Wall Street expectations in the first quarter, driven by rising demand for identity verification tools amid enterprise artificial intelligence rollouts. The identity security provider posted adjusted earnings per share of 91 cents versus 85 cents expected, with revenue reaching $765 million against consensus of $752 million. Revenue grew 11% year-over-year while net income climbed to $74 million from $62 million in the prior year period. CEO Todd McKinnon told CNBC that enterprise customers are beginning to assess and plan large-scale AI deployments, which should benefit the business long-term. McKinnon noted that artificial intelligence does not yet represent a majority of revenues, characterizing the current period as foundational infrastructure investment for the next five to ten years rather than a near-term revenue spike. He stated: "We're playing a long game here. It's not billions of dollars of token spend right now, it's plumbing for what's going to be required for the next five and 10 years, so I feel like it's less susceptible to euphoria."