Okta: Identity Infrastructure in Transition
Okta is the largest independent identity-security vendor, selling workforce and customer identity (SSO, MFA, governance, privileged access, and emerging AI-agent controls) as recurring subscriptions; FY2026 subscription revenue was $2.855 billion of $2.919 billion total. Growth has cooled to about 11% with FY2027 guidance of just 9–10%, but free cash flow is now substantial, with $884 million of operating cash flow in FY2026, so the real debate is whether Okta is a sturdier compounder or a maturing core squeezed by Microsoft's bundle and a still-healing trust scar. Rating Hold: a credible business at fair-to-moderate value with limited margin of safety, with a genuine moat and real cash but slower growth and bundling pressure that cap the rerating upside.