New York, Feb 21, 2026, 10:01 (EST) — Market closed.
- Okta shares fell 9.2% on Friday to $74.29, after touching $73.74 at the session low.
- The drop tracked a broader pullback in cybersecurity stocks tied to fresh anxiety about AI tools moving into security work.
- Traders now look to Okta’s March 4 results and outlook for the next clear catalyst.
Okta, Inc. shares fell $7.51, or 9.2%, to close at $74.29 on Friday, after swinging between $83.53 and $73.74 in heavy trade. The slide pushed Okta’s stock price to the bottom of its 52-week range. (Yahoo Finance)
The move stood out because the broader market finished higher on Friday after a U.S. Supreme Court ruling struck down President Donald Trump’s sweeping tariffs, lifting risk appetite into the close. The Nasdaq rose 0.9% and the S&P 500 gained 0.7%, according to Reuters. (Reuters)
Cybersecurity stocks still got hit. CrowdStrike fell 8% and Cloudflare 8.1%, while Zscaler lost 5.5%; Okta dropped 9.2% and the Global X Cybersecurity ETF slid 4.9%, Bloomberg reported. (Bloomberg)
For Okta holders, the timing is awkward. The company is set to report fourth-quarter and full-year fiscal 2026 results after the U.S. market close on Wednesday, March 4, and will hold a webcast at 5:00 p.m. Eastern. (Okta Investor Relations)
Anthropic supplied the spark. The AI company said “Claude Code Security” is now available in a limited research preview and can scan software codebases for vulnerabilities and suggest patches for human review. Anthropic called it a way to “put this power squarely in the hands of defenders.” (Anthropic)
Investors heard something else: the pace at which “AI agents” — software powered by large language models, or LLMs, that can act on instructions — are turning into products that automate real work that used to belong to specialist tools.
Jefferies analyst Joseph Gallo put it bluntly, saying the “broad implications” are that LLM providers “will announce more products and compete for incremental cyber budget dollars.” Raymond James analyst Mark Cash, writing about the plunge in JFrog, argued some of the selling looked overdone and noted many companies still rely on layered security beyond code review. (Investors)
Okta’s core business is identity and access management — the logins, permissions and authentication checks that decide who can get into which app and data. That is not the same job as scanning code for bugs, but traders didn’t make fine cuts on Friday.
There’s another angle. If companies lean harder into AI-driven coding and automated “fixes,” the demand for identity controls around new tools and new users could rise, not fall. Okta has pitched itself as the independent gatekeeper in that sort of sprawl.
But the downside case is easy to sketch. If AI vendors start bundling security capabilities into broader platforms, or if customers treat new AI tools as a reason to pause spending, Okta’s growth story can soften quickly — and the stock is already trading like investors expect rough answers.
Markets reopen Monday. The next real test for Okta is whether the cyber selloff fades or deepens, with attention turning quickly to the March 4 earnings release and the outlook that follows.
