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Okta OKTA and SentinelOne S are key providers of security software solutions for enterprises. OKTA offers cloud-based identity solutions that allow customers to integrate with nearly any application, service or cloud that they choose through its secure, reliable and scalable platforms: Okta Platform and Auth0 Platform. Meanwhile, SentinelOne focuses on endpoint security, cloud security and threat detection through its Singularity Platform that leverages a unified security data lake and Purple AI, its Generative AI (GenAI) engine.
According to Gartner’s latest data, enterprise spending on cybersecurity software and network security will grow 14% in 2025 to $118.5 billion, driven by strong demand for Gen AI and cloud adoption. IDC expects global cybersecurity spending to grow 12.2% year over year in 2025, driven by increasing complexity and frequency of cyberattacks due to growing deployment of Gen AI and AI, with spending on security software to grow 14.4% year over year. The bullish projections offer significant growth opportunities for both Okta and SentinelOne.
So, Okta or SentinelOne, which is leading the charge? Let’s find out.
Okta’s offerings include Okta AI, a suite of AI-powered capabilities embedded across several products, which empowers organizations to harness AI to build better experiences and protect against cyberattacks. The company benefits from strong demand for its new products, including Identity Governance, Privileged Access, Device Access, Fine Grained Authorization, Identity Security Posture Management, and Identity Threat Protection with Okta AI. The company has more than 7,000 integrations with cloud, mobile, and web applications and IT infrastructure providers as of April 30, 2025.
Okta is expanding its security portfolio with the launch of a new protocol, Cross App Access, which helps in securing AI agents. Okta is benefiting from a rich partner base that includes the likes of Amazon Web Services, CrowdStrike, Google, LexisNexis Risk Solutions, Microsoft, Netskope, Palo Alto Networks, Plaid, Proofpoint, Salesforce, ServiceNow, VMware, Workday, Yubico and Zscaler. Okta and Palo Alto Networks announced an expanded partnership that combines Okta Workforce Identity and Palo Alto Networks’ Prisma Access Browser.
OKTA’s innovative portfolio and rich partner base are helping the company win clients. It exited first-quarter fiscal 2026 with roughly 20,000 customers, reflecting strong growth prospects for subscription revenues. Customers with more than $100 thousand in Annual Contract Value increased by 70 sequentially to 4,870. These factors bode well for long-term investors.
The Zacks Consensus Estimate for second-quarter fiscal 2026 customer base is pegged at 20,426. The consensus mark for subscription revenues is pegged at $697 million, indicating 10.3% growth from the figure reported in the year-ago quarter.
Singularity platform is a complete AI-native platform that provides security at multiple levels, including endpoint, cloud, identity, and data through a single interface. Singularity’s popularity, driven by SentinelOne’s AI and automation-driven approach, is driving top-line growth.
In the first-quarter fiscal 2026, Purple AI, a key component of the Singularity platform, saw triple-digit quarterly bookings growth on a year-over-year basis, reflecting growing adoption. The company achieved an attach rate that exceeded 25% across subscriptions sold in the reported quarter. In the first quarter of fiscal 2026, SentinelOne launched Purple AI Athena, the industry’s first true end-to-end Agentic AI platform for cybersecurity.
Acquisitions are playing an important role in expanding SentinelOne’s portfolio. The pending agreement to acquire Prompt Security will expand its AI-native Singularity Platform to secure generative and agentic AI use in the enterprise by preventing prompt injection, data leakage, and misuse in real time. An expanding partner base that includes Amazon and Lenovo is noteworthy.
The Zacks Consensus Estimate for SentinelOne’s second-quarter fiscal 2026 customer with Annual Recurring Revenues (ARR) of more than $100K is pegged at 1,509.
SentinelOne, Inc. price-consensus-chart | SentinelOne, Inc. Quote
The Zacks Consensus Estimate for SentinelOne’s fiscal 2026 earnings is pegged at 20 cents per share, unchanged over the past 30 days. The company reported earnings of 5 cents per share in fiscal 2025.
The consensus mark for Okta’s fiscal 2026 earnings has been steady $3.28 per share over the past 30 days, suggesting 16.73% growth over fiscal 2025.
Okta, Inc. price-consensus-chart | Okta, Inc. Quote
Okta shares have appreciated 16.5% year to date, outperforming SentinelOne, shares of which have dropped 23.9%.
Both Okta and SentinelOne are overvalued, as suggested by the Value Score of D and the Value Score of F, respectively.
In terms of forward 12-month Price/Sales, SentinelOne shares are trading at 4.99X, lower than Okta’s 5.22X.
Okta’s innovative portfolio, along with a strong partner base, is noteworthy. However, a slowing federal business, challenging macroeconomic conditions and stiff competition in the Identity and Access management domain are major concerns.
SentinelOne is also suffering from challenging macroeconomic conditions, which have led to elongated sales cycles as certain customers paused their spending decisions, impacting net new ARR growth.
Okta currently carries a Zacks Rank #3 (Hold), providing the shares an edge over SentinelOne, which has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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