How Okta's (OKTA) Palo Alto Networks Partnership Could Reshape Its Role in Cybersecurity Integration

• Earlier this week, Okta announced new integrations with Palo Alto Networks to unify identity access and threat detection capabilities for enterprise customers.
• This collaboration brings Okta’s Identity Threat Protection system together with Palo Alto’s Cortex XSIAM, aiming to give security teams improved visibility and more effective automated responses to identity-related threats.
• We'll explore how Okta's expanded partnerships in cybersecurity could reinforce its position as a key provider of unified identity platforms.

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Okta Investment Narrative Recap

To own Okta stock, you need to believe that identity security will become increasingly central for enterprises, and that Okta can defend and grow its share through product expansion, deeper integrations, and execution in a competitive field. The recent partnership with Palo Alto Networks reinforces Okta’s strategy to build a unified security platform, but this announcement alone does not fundamentally shift the biggest short-term catalyst, accelerating upsell and cross-sell from its expanded suite, or address the largest risk, which remains ongoing weakness in net revenue retention.

Among recent announcements, Okta’s launch of Cross App Access, to secure AI agents and streamline permissions, stands out as especially relevant. This move supports Okta’s ambitions in providing comprehensive security for both traditional and new digital identities, positioning the company for potential tailwinds as organizations prioritize unified identity management across human and nonhuman users.

Yet, despite these advances, investors should be aware that persistent weakness in net revenue retention means existing customer expansion could remain...

Read the full narrative on Okta (it's free!)

Okta's narrative projects $3.5 billion revenue and $354.5 million earnings by 2028. This requires 9.6% yearly revenue growth and a $224.5 million increase in earnings from $130.0 million today.

Uncover how Okta's forecasts yield a $122.00 fair value, a 23% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community range between US$105.65 and US$147.87 per share, showing broad opinion diversity. With ongoing weakness in net revenue retention challenging growth, consider how differing outlooks reflect real uncertainty around Okta’s next phase.

Explore 7 other fair value estimates on Okta - why the stock might be worth just $105.65!

Build Your Own Okta Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Okta research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Okta research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Okta's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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