Okta’s results just beat Wall Street expectations

Record $1.3B in total contract value (TCV) in Q4. New products ~30% of Q4 bookings. $3B+ in annual contract value. The growth engine is clearly firing.

But the real story is how they’re growing.

AWS Marketplace as a strategic GTM channel

Okta’s CFO called AWS Marketplace a “strategic go-to-market channel” as the company shared a ~$750M annual TCV milestone on AWS.

The context makes this even more striking.

Okta crossed $1B cumulative in AWS Marketplace sales in Jan 2025. Now they’re doing $750M in TCV in a single year.

That kind of acceleration at scale shows what’s possible when marketplace becomes embedded in how a company sells.

Partners in 18 of top 20 deals

Channel partners were involved in 18 of Okta’s top 20 Q4 deals.

And as Brett Tighe put it: “When our partners are involved, the average deal size is bigger, and the close rates improve.”

But here’s what’s interesting:

Okta is deliberately shifting more professional services work to global system integrators — a move that management said creates about a 1% impact on FY27 revenue guidance.

Why give up revenue?

Because customers need GSIs more than ever for change management around agentic AI, and Okta is betting that deeper GSI relationships will drive larger enterprise subscription growth over time.

It’s a classic long-term partner trade-off: sacrifice short-term PS dollars to build an ecosystem that can scale the platform.

Agentic is landing as enterprise deals

Okta’s new AI agent products had their first real bookings quarter.

Todd McKinnon, CEO, said Q4 “translated into real dollars and real bookings,” even if it is still small relative to the overall business.

Brett Tighe added that the deals “have been larger” because they are “more tilted toward larger companies.”

The company also said agentic identity should be accretive to growth in FY28 and FY29 — not a one-quarter story. For anyone evaluating AI-related investments, that helps clarify the timeline: plant seeds now, harvest in 12–24 months.

One more point worth noting

Despite all the industry talk about AI replacing people, Okta said it has been adding quota-carrying sales capacity starting in Q2, and continued through Q4 and into the current Q1.

When GTM is working — including partners and marketplace — you often need more people to capture the demand, not fewer.

3 lessons for alliance leaders:

• Treat marketplace as a strategic GTM system

• Pull SIs closer when the product requires real transformation and change management

• Build for agentic now, even if the revenue curve is still ahead

How are you seeing the marketplace and partner dynamics shift in your own organization?