Okta unveils security tools for AI agents amid growing risks

LAS VEGAS - Identity security firm Okta, Inc. (NASDAQ:OKTA), a $15.8 billion market cap company with impressive 77% gross margins and strong financial health according to InvestingPro, announced new platform capabilities designed to secure AI agents and prevent AI-powered fraud, according to a company press release issued Thursday.

The company introduced "Okta for AI Agents," a solution that integrates artificial intelligence agents into Okta’s identity security framework, providing lifecycle management from discovery to governance. The system is planned for early access in the first quarter of fiscal year 2027, with general availability later that year. With revenue growing at nearly 13% and maintaining profitability over the last twelve months, Okta continues to invest in innovation while maintaining financial stability.

Okta also unveiled Cross App Access (XAA), a protocol that extends OAuth standards to secure interactions between AI agents and applications. XAA is currently available in early access within the Okta Platform, with support from companies including AWS, Google Cloud, Salesforce, and Box.

"AI is changing the workplace faster than organizations can adapt," said Kristen Swanson, Okta’s SVP of Design and Research, in the press release. "We’re starting to see poorly built, deployed, or managed agents expose the risks of using a traditional patchwork of identity solutions."

The company cited research indicating 91% of organizations already use AI agents, yet only 10% have strategies for managing non-human identities.

Additionally, Okta announced plans for a Verifiable Digital Credentials platform to help combat AI-powered fraud. The system, expected in fiscal year 2027, will allow organizations to issue and verify tamper-proof digital identity information such as government IDs and certifications.

A Digital ID verification feature supporting mobile driver’s licenses is planned for early access in the fourth quarter of fiscal year 2026.

The announcements come as organizations face increasing security challenges from AI agents that may operate with high privileges and ephemeral lifecycles, potentially creating new vulnerabilities if not properly managed. According to InvestingPro analysis, Okta’s stock currently trades below its Fair Value, suggesting potential upside opportunity as the company executes on these strategic initiatives. For deeper insights into Okta’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Okta, Inc reported strong second-quarter fiscal 2026 results, showcasing a 13% year-over-year revenue growth, surpassing the 10% estimate. The company also reported a remaining performance obligation (RPO) growth of 18% and strong cash flow of $167 million against the expected $143 million. Following these results, Okta raised its fiscal year 2026 revenue guidance by $25 million, increased its EBIT margin by 50 basis points, and improved its free cash flow margin by 1 percentage point. Despite these positive results, BMO Capital lowered its price target for Okta to $112 from $132 due to concerns about growth durability. Piper Sandler maintained a Neutral rating with a $110 price target, citing improved execution compared to the first quarter. KeyBanc reiterated an Overweight rating with a $140 price target, highlighting Okta’s solid performance. Meanwhile, BofA Securities maintained an Underperform rating and a $75 price target, expressing concerns about potential peak business momentum. TD Cowen reiterated a Hold rating with a $115 price target, acknowledging the company’s strong second-quarter performance.

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