Jim Cramer Says AI Could Make Okta’s Security Software More Essential

On the September 16 episode of Mad Money, financial commentator Jim Cramer highlighted Okta, Inc. (NASDAQ: OKTA) as a cybersecurity play that could help mitigate risks related to artificial intelligence. Cramer noted that AI is not making Okta obsolete, stating that their security software is more essential now that AI agents are roaming around the internet.

Okta reported a 11% year-over-year revenue increase to $805 million in its fiscal second-quarter 2027 results. The company's total remaining performance obligations rose 14% to $2.59 billion, and free cash flow reached $227 million. Okta's fiscal 2027 revenue outlook was raised to $3.216 billion-$3.226 billion, representing 10%-11% growth.

The company's new capabilities aim to provide real-time control over identities, including humans, AI agents, and non-human workloads. Okta's stock has gained 144% over six months, but revenue growth remains around 10%. The potential of AI-agent security as a meaningful growth source is still uncertain, as Okta does not disclose AI-agent revenue separately.

Despite some insider selling and a 4.6% short interest of the float, Okta enters the AI-agent debate with stronger cash flow, faster recurring revenue growth, and new products focused on controlling AI and non-human identities.