Okta Inc. (NASDAQ:OKTA) shares soared 14.93% in the after-hours trading session on Monday, March 3, 2025, following the company's better-than-expected fourth-quarter results and raised guidance amid strong demand for its identity protection solutions fueled by the AI boom.

The cloud-native cybersecurity company reported Q4 2025 revenue of $682 million, beating analyst estimates of $669.46 million, and adjusted earnings per share of $0.78, surpassing expectations of $0.74. The strong performance was driven by accelerating subscription backlog, high profitability, and robust cash flow generation.

Moreover, Okta raised its full-year 2026 guidance, forecasting revenue between $2.85 billion and $2.86 billion, and adjusted EPS in the range of $3.15 to $3.20, both exceeding consensus estimates. The company's CEO, Todd McKinnon, expressed optimism about Okta's position to benefit from the rapidly evolving AI landscape, as organizations increasingly require secure identity solutions to manage the associated risks.

The company also announced a significant milestone of reaching $1 billion in aggregate sales on the AWS Marketplace over the past four years, highlighting the strong demand for its cloud-based offerings. Okta's ability to provide a broad array of modern identity security solutions with flexibility has positioned it as a trusted partner for organizations amid the AI revolution.