This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. As companies like Google, PayPal Holdings and Stripe race to establish agentic AI commerce in the consumer realm, another large opportunity for the technology lies in business operations. The technology carries enormous potential in the world of commercial finance and business-to-business functions, Deloitte Consulting noted in its 2026 trends and insights report. ...

Summary of Okta's Conference Call Company Overview - **Company**: Okta - **Role of Key Speakers**: Monty Gray, responsible for corporate development, covering strategy, M&A, and technology partnerships [4][3] Industry Insights - **Identity Market Evolution**: The identity market has transitioned from an enablement function to a security-focused phase, with a convergence of previously separate segments like IAM, IGA, and PAM [5][6][10] - **Current Trends**: Increased security awareness and cloud adoption are driving the need for simpler, unified identity systems [10][11] Product Offerings and Performance - **Governance and Privileged Access Management (PAM)**: - Governance (IGA) has seen significant traction and is a major contributor to new product revenue [11][12] - PAM is still maturing but is expected to contribute meaningfully to future business [12] - **Sales Structure**: The sales organization is specialized to facilitate cross-selling of governance and PAM products alongside identity management [18][19] Customer Deployment and Readiness - **Deployment Complexity**: Customer environments vary (cloud vs. on-prem), affecting deployment readiness and complexity [14][15] - **Change Management**: Successful deployment relies heavily on customer understanding of policies and entitlements, with cloud deployments now taking weeks to months [15] M&A Strategy - **Tuck-in Acquisitions**: Okta is focused on acquiring companies that enhance resource coverage and capabilities, with Axiom being a recent example [26][27] - **Large Scale M&A**: While always considered, there is no immediate need for large-scale acquisitions due to current capital flexibility [28] Financial Performance - **Revenue Growth**: Revenue grew 12% year-on-year, with RPO up 17% and cRPO up 13% [62] - **Contract Duration**: Average contract duration is extending, incentivizing longer deals and enhancing cross-sell opportunities [64][66] - **Net Retention**: Stable gross retention supports a net retention rate around 106, with upselling and cross-selling driving growth [68][70] Market Position and Competitive Landscape - **Cloud Neutrality**: Okta's independence from application silos is a competitive advantage, especially as agents become more prevalent [32][33] - **Agentic AI**: The rise of non-human identities (agents) is creating new security challenges, with heightened awareness among CISOs [35][39] Customer Engagement - **Customer Testimonials**: Okta is actively building a portfolio of customer testimonials, showcasing successful agent deployments in regulated environments [41][44] - **Monetization of Agentic AI**: Okta is developing two offerings for managing agents, with early monetization efforts underway [49] Conclusion - Okta is well-positioned in the evolving identity market, leveraging its cloud neutrality and expanding product offerings to meet the growing demand for secure identity solutions. The company is focused on strategic growth through M&A, enhancing customer engagement, and optimizing its sales structure to drive future revenue growth.

The Consumer Electronics Show (CES) in Las Vegas is currently underway, serving as the global stage for SoundHound’s most critical product reveal to date. The company has officially unveiled Amelia 7, a massive upgrade to its conversational AI platform. This launch marks a pivotal transition for the industry: the shift from generative AI to agentic AI.The timing of this rally aligns perfectly with the January Effect. This well-known market phenomenon often sees beaten-down growth stocks rebound during the f ...

The S&P 500 (SNPINDEX:^GSPC) rose 0.62% to 6,944.82, the Nasdaq Composite (NASDAQINDEX:^IXIC) added 0.65% to 23,547.17 as Big Tech extended its New Year rally, and the Dow Jones Industrial Average (DJINDEX: ^DJI) gained 0.99% to 49,462.08, a record high as it closed above 49,000 for the first time. Market movers Palantir Technologies (NASDAQ:PLTR) jumped on the back of analyst upgrades and enthusiasm for agentic AI. Sandisk Corporation (NASDAQ:SNDK) soared after Nvidia (NASDAQ:NVDA) CEO Jensen Huang said ...

Meta closing out 2025 with an 11th hour acquisition. Got a few of those in the tech space this week. The company announcing it is buying Manis, a startup founded in China that builds AI agents.Mackenzie Sagalas has more in today's tech check segment. Mac, and it's interesting to see Meta outperforming, too. >> Yeah, it is.Investors are bullish on this and part of that is the fact that it's a deal that speaks directly to the pressure pressure Meta CEO Mark Zuckerberg is facing to show returns on the company' ...

Core Insights - The software sector is undergoing significant changes, necessitating an understanding of future winners in the industry [1][2] Group 1: Shifts in the Software Industry - The emergence of agentic AI marks a pivotal shift in the software landscape, differentiating itself from generative AI by being more autonomous and not requiring prompts [3][4] - The narrative that the "Software as a Service" (SaaS) era is over is driven by three main factors: the rise of AI lowering entry barriers for new software companies, outdated pricing models, and challenges in maintaining data moats [5][6][7] Group 2: Evaluating Software Companies - Key factors for identifying strong software businesses include pricing power, expanding markets, and robust competitive environments, with a particular emphasis on the quality of a company's moat [8][9] - Durable moats are becoming increasingly important due to rising competition and lower barriers to entry in the software industry [9] Group 3: Investment Strategies - Actively managed ETFs can capitalize on opportunities within the software and technology sectors by adapting to innovations and identifying winners and losers [10][11] - The MFS Active Growth ETF (MFSG) has a significant allocation of 51.66% towards the information technology sector, allowing it to leverage momentum in the tech space while maintaining diversification [12]

Financial Data and Key Metrics Changes - Revenue for the first quarter reached $18.7 billion, growing 5% in local currency, with adjusted EPS growth of 10% compared to the same quarter last year [6][17][20] - Adjusted operating margin expanded by 30 basis points year over year, reaching 17% [7][17] - Free cash flow for the quarter was $1.5 billion, with a cash balance of $9.6 billion at the end of the quarter [21][22] Business Line Data and Key Metrics Changes - New bookings totaled $20.9 billion, representing 12% growth in U.S. dollars and 10% growth in local currency [16][17] - Consulting revenues were $9.4 billion, growing 4% in U.S. dollars and 3% in local currency, while managed services revenues were $9.3 billion, growing 8% in U.S. dollars and 7% in local currency [18] - Advanced AI bookings reached $2.2 billion, nearly doubling from the previous year, with revenue of approximately $1.1 billion [9][10] Market Data and Key Metrics Changes - Revenue growth in the Americas was 4% in local currency, with a 6% growth excluding federal business impacts [18][19] - EMEA saw 4% growth in local currency, driven by banking and capital markets, while Asia-Pacific experienced 9% growth, led by Japan and Australia [19] - The demand for reinvention remains strong, with 60% of revenue in Q1 coming from work with top 10 ecosystem partners [11][12] Company Strategy and Development Direction - The company aims to be the most client-focused, AI-enabled workplace, emphasizing the importance of partnerships and strategic acquisitions to enhance capabilities [5][14] - Recent acquisitions include a 65% stake in DLB Associates, expanding capabilities in the AI data center engineering market [14] - The focus is on embedding advanced AI across various solutions, moving beyond standalone projects to integrated end-to-end solutions [10][34] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are prioritizing large-scale transformational programs, with no significant changes in discretionary spending observed [24][66] - The company expects revenue growth for fiscal 2026 to be in the range of 2-5% in local currency, with an inorganic contribution of about 1.5% from acquisitions [37][39] - The outlook for adjusted diluted earnings per share for fiscal 2026 is projected to be between $13.52 and $13.90, reflecting 5-8% growth over the previous fiscal year [38][39] Other Important Information - The company recorded $308 million in business optimization costs related to employee severance, impacting operating margin and EPS [20] - The company continues to invest significantly in talent and technology, with nearly 80,000 AI and data professionals targeted [7][8] Q&A Session Summary Question: Shift in consulting industry's role in AI - Management acknowledged a shift in perception, emphasizing that enterprise AI adoption requires foundational work around data and processes [42][44] Question: Revenue impact of AI partnerships - Management indicated that partnerships are crucial for enterprise adoption and will contribute to revenue as the market evolves [50][51] Question: Sustainability of revenue per head growth - Management confirmed a 7% growth in revenue per person, driven by talent rotation, but expects moderation as new hires are integrated [52][54] Question: Discretionary spending outlook - Management stated that they are not waiting for discretionary spending to return, focusing instead on delivering results despite current market conditions [65][66] Question: Fixed-price work growth potential - Management expressed confidence in the competitive advantage of fixed-price contracts, which have increased significantly, and noted ongoing evolution in commercial models [67][68]

Summary of Key Points from the Conference Call Industry and Company Focus - **Industries Covered**: The report discusses various sectors including Freight Transportation, Media & Entertainment, Cybersecurity, and E-commerce. - **Key Companies Mentioned**: Major companies referenced include Apple, Amazon, Netflix, Spotify, and various hotel brands. Core Themes and Arguments 1. **AI in Freight Transportation** - **AI Adoption**: The Freight Transportation sector is projected to achieve AI-driven savings exceeding 100% of 2026 estimated pretax earnings, highlighting significant transformation potential [14][17]. - **Cost Reduction**: AI is expected to lower headcount and improve operational efficiency, creating new revenue and margin opportunities [14]. - **Mainstream Acceptance**: 2026 is anticipated to be a pivotal year for AI in Freight Transportation, with broader industry acceptance and a shift towards Physical AI [17][18]. - **Risks**: The widespread use of AI could democratize information, impacting pricing strategies and potentially disintermediating brokers [18]. 2. **Agentic AI in Travel and Hospitality** - **Impact on Hotel Brands**: Major hotel brands are expected to form partnerships with AI platforms to enhance revenue through better inventory management and consumer alignment [30]. - **OTA vs. Brands**: The debate centers on how agentic AI will affect the relationship between Online Travel Agencies (OTAs) and hotel brands, with risks to higher-margin direct traffic for OTAs [30][31]. - **Consumer Behavior**: The shift towards AI agents could change how consumers interact with travel services, potentially benefiting larger brands with strong loyalty programs [37]. 3. **Agentic Commerce in E-commerce** - **Market Potential**: Agentic commerce could add up to $115 billion to the U.S. e-commerce forecast by 2030, transforming the consumer shopping experience [44][45]. - **Adoption Rates**: The report anticipates that agentic features will evolve rapidly, with significant implications for retailers and digital ad platforms [54]. - **Risks for Retailers**: Retailers may face margin pressures as agentic commerce could cannibalize existing transactions, necessitating a focus on incremental sales for profitability [59]. 4. **AI in Media & Entertainment** - **Opportunities and Risks**: AI is seen as both a catalyst for innovation and a source of disruption, particularly for content creators and IP owners [72][73]. - **Consumer Demand**: There is an expectation for increased demand for live experiences as AI-generated content proliferates, benefiting companies like Live Nation and Disney [78][89]. - **Labor and Regulatory Challenges**: Upcoming labor negotiations in Hollywood could significantly impact production cycles and the role of AI in content creation [93]. 5. **Cybersecurity Landscape** - **Platform Dominance**: Core cybersecurity platforms are outperforming, driven by network effects and consolidation benefits [95]. - **Market Trends**: There is a growing trend towards consolidating security vendors, with enterprises seeking long-term partnerships with larger platform vendors [96]. Additional Important Insights - **AI's Broader Economic Impact**: The report emphasizes the transformative potential of AI across various sectors, with a focus on how it can create new economic value while also posing risks [8][14]. - **Investment Considerations**: Investors are advised to consider the implications of AI adoption on company valuations and market dynamics, particularly in sectors like transportation and hospitality [7][8]. This summary encapsulates the key themes and insights from the conference call, highlighting the transformative role of AI across multiple industries and the associated risks and opportunities for companies involved.

Key Takeaways BigBear.ai is acquiring Ask Sage to expand its agentic AI offerings for defense and secure environments.BBAI's agentic AI aligns with defense demands for secure, auditable systems in regulated settings.BBAI stock rose 73.2% in a year and trades at a discount, with narrowing EPS losses projected through 2026.As defense agencies accelerate digital modernization, the focus is shifting from standalone analytics toward agentic AI—systems that not only analyze data but autonomously assist, coordinat ...

"In 2026, we'll see a shift from experimentation to scale. Agents will begin acting as true digital co-workers, managing complex workflows end-to-end rather than automating isolated tasks. The differentiator won't be who has the most sophisticated model, but who has the most coherent data strategy and governance framework. The UK enterprises that pull ahead will be those that move past 'automation dressed up as AI' and invest in agentic systems built for trust, interoperability and continuous oversight.""20 ...