Okta Inc. (NASDAQ: OKTA), a leading provider of cloud-based identity and access management solutions, witnessed a remarkable surge of over 17% in its stock price on Tuesday, March 4, 2025. The rally was fueled by the company's impressive fourth-quarter financial results for fiscal year 2025, which exceeded analyst expectations, and a raised guidance for the current fiscal year 2026, driven by the growing demand for secure identity solutions amidst the AI revolution.

In the fourth quarter ended January 31, 2025, Okta's revenue climbed 13% year-over-year to $682 million, surpassing analyst estimates of $669.46 million. The company's adjusted earnings per share (EPS) of $0.78 also exceeded expectations of $0.74, reflecting a 24% increase compared to the same period last year. This strong performance was driven by accelerating subscription backlog, high profitability, and robust cash flow generation.

Looking ahead, Okta raised its full-year 2026 guidance, forecasting revenue between $2.85 billion and $2.86 billion, representing a year-over-year growth of 9% to 10%, higher than its previous estimate. The company also expects adjusted EPS to range from $3.15 to $3.20, exceeding consensus estimates. Okta's CEO, Todd McKinnon, expressed optimism about the company's position to benefit from the rapidly evolving AI landscape, as organizations increasingly require secure identity solutions to manage the associated risks.

During the earnings call, McKinnon highlighted Okta's ability to deliver the broadest array of modern identity security solutions with flexibility, positioning the company as a trusted partner for organizations amid the AI revolution. He stated, "In a rapidly evolving IT and security landscape, organizations are turning to Okta as their identity partner for our ability to deliver the broadest array of modern identity security with the flexibility to meet their demands."