• Okta recently reinforced its commitment to India by launching in-country Okta Platform tenants hosted on AWS, offering local data storage, enhanced disaster recovery, and support for compliance with the DPDP Act and sector-specific regulations across highly regulated industries.
• By extending its identity security fabric to cover both human and AI agents within India, Okta is directly targeting the growing governance gap as organizations adopt AI faster than they develop controls for non-human identities.
• We’ll explore how Okta’s move to provide in-country tenants for India, particularly its AI-focused identity security fabric, shapes its investment narrative.

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What Is Okta's Investment Narrative?

To own Okta, you really have to believe in identity as a core security layer and in Okta’s ability to turn that role into durable, profitable growth despite a rich valuation and intensifying competition. The India in-country tenant launch fits that thesis but is unlikely to shift the near term story dramatically on its own; it looks more like a long-term positioning move that supports Okta’s AI-centric “identity security fabric” narrative and could modestly enhance its appeal in regulated, AI-hungry industries. Near term, the more immediate catalysts still sit around execution against FY2026 guidance, the new US$1.00 billion buyback, and whether improving profitability can help justify a higher multiple. The key risks remain Okta’s high earnings multiple, relatively low return on equity, and any stumble in keeping large enterprises on its platform.

However, there is one valuation-related risk here that investors should not ignore. Despite retreating, Okta's shares might still be trading 27% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

Eight Simply Wall St Community fair values span roughly US$105.65 to US$147.87, underscoring how far opinions can stretch. Against that backdrop, Okta’s rich earnings multiple and modest revenue growth expectations give you plenty of reasons to compare those viewpoints before deciding what the recent India and AI push might really mean for future performance.

Explore 8 other fair value estimates on Okta - why the stock might be worth just $105.65!

Build Your Own Okta Narrative

Disagree with this assessment? Create your own narrative 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 3 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.