You want to talk about irony? Okta Inc ( NASDAQ:OKTA ) sells identity security to enterprises worldwide, and in 2023, hackers breached its own systems. ...

NEWTON, Mass. & PETACH TIKVA, Israel--(BUSINESS WIRE)--CyberArk (NASDAQ: CYBR), the global leader in identity security, today announced that it has been recognized as a Leader in the IDC MarketScape: Worldwide Integrated Solutions for Identity Security 2025 Vendor Assessment. CyberArk extends dynamic privilege controls across all identity types with its unified platform, enabling organizations to improve efficiencies and streamline security operations. This IDC MarketScape report notes, "More c. ...

Core Insights - Okta and SailPoint both exceeded Q3 2026 earnings expectations, but their financial paths are markedly different [1] Financial Performance - Okta reported $742 million in revenue, a 12% year-over-year increase, and achieved $43 million in GAAP net income [1][2] - SailPoint generated $282 million in revenue, reflecting a 20% growth, but incurred a GAAP operating loss of $36 million [1][3] - Okta's operating cash flow surged 37% to $218 million, while SailPoint's operating cash flow was $54 million [2][4] Cash Position and Valuation - Okta holds $2.46 billion in cash, significantly more than SailPoint's $298 million, allowing for aggressive investment and margin pressure management [5] - SailPoint's price-to-sales ratio stands at 12.7x, compared to Okta's 5.6x, indicating a valuation disconnect despite SailPoint's higher growth rate [5][6] Market Expectations and Analyst Ratings - SailPoint trades at 119x forward earnings, while Okta trades at 24x forward earnings, reflecting differing market expectations [6] - Analysts show a slight preference for SailPoint with 86% buy ratings compared to Okta's 64% [6] Future Outlook - Okta's Q4 revenue guidance is set at $748-750 million, suggesting an 11% growth, while SailPoint anticipates $290-294 million in revenue [7] - Okta's focus on large customer wins and AI product adoption may help sustain profitability, whereas SailPoint needs to demonstrate scalability and reduced losses [7][8]

Company Overview - SailPoint Technologies Holdings, Inc. is a significant player in the enterprise identity security sector, focusing on managing human and digital identities to secure access to applications and data [1] - The company's platform is designed to deliver identity-first security, aiding enterprises in defending against evolving threats [1] Stock Performance - On December 10, 2025, Scotiabank set a price target of $24 for SAIL, indicating a potential increase of approximately 19.55% from its then-current price of $20.08 [2] - Currently, SAIL's stock is priced at $20.13, reflecting a slight increase of 1.23% with a change of $0.25 [2] - SAIL's stock has shown volatility, with today's price fluctuating between a low of $19.54 and a high of $20.57 [3] - Over the past year, the stock has reached a high of $26.35 and a low of $15.05, indicating both growth potential and significant price swings [3][5] Market Capitalization and Trading Activity - The company's market capitalization is approximately $11.3 billion, highlighting its substantial size in the market [4][5] - With a trading volume of 925,284 shares on the NASDAQ exchange, SAIL is actively traded, reflecting investor interest and confidence in its growth potential [4]

Core Insights - BeyondTrust and Ping Identity have formed a strategic partnership to create a unified identity security solution that integrates Privileged Access Management (PAM), Identity and Access Management (IAM), and Identity Governance and Administration (IGA) [1][2][3] Group 1: Partnership Overview - The collaboration aims to automate and orchestrate access decisions across both human and non-human identities, enhancing Zero Trust initiatives and facilitating secure digital transformation [2][4] - The joint solution eliminates silos in traditional identity security architectures, providing a cohesive framework that enhances visibility and control [3][7] Group 2: Solution Features - The integrated solution offers capabilities such as contextual just-in-time access, adaptive multi-factor authentication (MFA), and automated joiner-mover-leaver processes to improve governance and reduce exposure [8] - Organizations can manage AI agents and non-human identities with least-privilege governance and continuous monitoring, thereby strengthening overall security [8] Group 3: Market Position and Impact - BeyondTrust is recognized as a leader in identity security, serving over 20,000 customers, including 75 of the Fortune 100, and is focused on transforming identity security to prevent breaches [10] - Ping Identity emphasizes the importance of trust in digital interactions and aims to provide scalable, flexible identity solutions that integrate seamlessly with existing technology stacks [11]

Financial Performance - The company's Annual Recurring Revenue (ARR) reached $1040 million, demonstrating a year-over-year growth of 28%[10] - SaaS ARR experienced even stronger growth, increasing by 38% year-over-year to $669 million[10] - Q3'26 total revenue was $282 million, a 20% increase compared to Q3'25[10] - The company maintains a strong customer retention rate, with a Net Retention Rate (NRR) of 114%[10] Customer Growth - The company has approximately 3,170 customers[10] - The number of customers with ARR greater than $250K increased by 28% year-over-year[66] - The number of customers with ARR greater than $1 million increased by 39% year-over-year[68] Profitability - The adjusted subscription gross profit margin for Q3'26 was 82.5%[10] - The adjusted operating margin for Q3'26 was 19.8%[10] Future Outlook - The company projects Q4'26 ARR to be between $1120 million and $1124 million, representing a 28% year-over-year growth[77] - The company projects total revenue for fiscal year 2026 to be between $1067 million and $1071 million, representing a 24% year-over-year growth[77]

Financial Data and Key Metrics Changes - In Q3 FY 2026, the company reported total revenue growth of 10% and raised its full-year revenue growth outlook to 11% [17][18] - The non-GAAP operating margin for Q4 is expected to be 25%, with a full-year margin of 26% [17][18] - Free cash flow margin is projected at approximately 31% for Q4 and around 29% for the full year [17][18] Business Line Data and Key Metrics Changes - The company experienced strength with large customers and upsells in its workforce segment, particularly with new products like Okta Identity Governance [6][7] - New products are contributing significantly to results, with a record number of customers engaging with Okta's offerings [7][9] Market Data and Key Metrics Changes - The company has over 20,000 customers, positioning it well to become the identity layer for AI agents [9][10] - There is a surge in interest for agentic security solutions, with over 100 current customers representing more than $200 million in existing ARR [10][11] Company Strategy and Development Direction - The company is focusing on securing AI agents and non-human identities, which is seen as a critical growth opportunity [8][12] - Okta is investing in innovation and expanding its product portfolio to simplify customer interactions and enhance security [7][14] - The strategy includes increasing the number of quota-carrying sales representatives to meet growing demand [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming Q4, which is expected to be the largest quarter of the year, and highlighted strong business momentum [44][46] - The company is confident in its strategy to capture emerging opportunities in the identity security space, particularly related to AI [14][35] Other Important Information - The company ended Q3 with nearly $2.5 billion in cash, cash equivalents, and short-term investments, indicating a strong balance sheet [17] - The company is evaluating its capital structure and considering investments in business growth, M&A, and opportunistic repurchases of outstanding notes [17] Q&A Session Summary Question: What convinces customers to consolidate their identity management with Okta? - Management noted that technological changes, particularly related to AI, are driving customers to consolidate their identity management systems with Okta [24][26] Question: Can AI capabilities be deployed by non-Okta customers? - Management confirmed that while many customers are interested in AI capabilities, the deployment can be applicable to any company, not just existing Okta customers [30][33] Question: How does the company view its guidance for the next fiscal year? - Management refrained from providing specific guidance for FY 2027, citing the need to assess Q4 performance first, but expressed confidence in business momentum and growth opportunities [40][48] Question: What is the status of the sales realignment efforts? - Management reported positive outcomes from the sales realignment, with improved sales productivity and lower attrition rates among account executives [80][81] Question: How is the company addressing the challenge of agentic commerce? - Management highlighted the importance of Auth0 for AI Agents in enabling businesses to build and manage agents effectively, addressing security and access challenges [59][62]

Core Insights - The rapid advancement of AI technology is creating a systemic shift in the technology landscape, with potential long-term impacts being underestimated while short-term effects may be overestimated [1][2] - Concerns about an AI bubble exist among investors, but evidence suggests that generative AI can enhance revenue across various sectors [2][3] - Companies are cautiously adopting AI, with many running pilot projects but facing hesitance in full-scale implementation due to comfort levels with the technology [3] Industry Impact - AI is reshaping labor and operational models, leading to significant job cuts in companies like Amazon, which is eliminating 14,000 corporate roles, while others like Chegg and UPS are exploring automation to replace or supplement human work [4] - Historical industrial shifts indicate that while technology displaces certain jobs, it also creates new opportunities in different sectors [4] Investment Considerations - The stakes for investors are high, as effective deployment of AI can lead to increased efficiency and growth, while misjudging investment strategies may result in companies falling behind [5] - Companies are encouraged to focus on growth beyond just revenue, emphasizing long-term innovation, customer experience, and investment in workers to drive sustainable success [5]

Core Viewpoint - SailPoint, Inc. (NASDAQ:SAIL) is recognized as one of the best growth stocks under $25, with analysts reiterating a Buy rating and setting price targets of $29 and $25 respectively [1][2]. Group 1: Analyst Ratings and Price Targets - Peter Levine from Evercore ISI reiterated a Buy rating on SailPoint, Inc. with a price target of $29 [1]. - Keith Bachman from BMO Capital also reiterated a Buy rating with a price target of $25 [2]. Group 2: AI and Product Development - Analysts believe SailPoint will benefit from the expanding role of AI, highlighting the company's latest product announcements that enhance upsell and cross-sell opportunities [2]. - The Atlas Platform is noted for its unique capability in managing human and agent identities, setting SailPoint apart from competitors [2]. - SailPoint governs over 125 million identities, showcasing its scale in the market [3]. - Recent products like Agent Identity Security further solidify SailPoint's market position in enterprise identity security solutions [3].

Core Insights - CyberArk has been recognized as a Leader in the 2025 Gartner® Magic Quadrant for Privileged Access Management for the seventh consecutive time, highlighting its strong position in the market [1] - The company is positioned furthest in Completeness of Vision, indicating its commitment to shaping the future of privilege access management (PAM) [1] Company Summary - CyberArk is identified as the global leader in identity security, emphasizing its expertise and influence in the industry [1] - The recognition from Gartner reflects CyberArk's ongoing innovation and strategic direction in the PAM sector [1]