Okta and SailPoint both exceeded Q3 2026 earnings projections, but their financial paths diverge. Okta made $742 million in revenue with $43 million in GAAP net income, while SailPoint had $282 million in revenue but lost $36 million. Okta generated $211 million in free cash flow and turned profitable, holding $2.46 billion in cash. SailPoint crossed $1 billion in total ARR but required $98 million in addbacks to show adjusted operating profit.
Okta’s revenue grew 12% year over year with an operating cash flow of $218 million and $211 million in free cash flow. The company turned a $16 million loss into $23 million in operating income, highlighting its strength with large customers and product adoption. SailPoint, on the other hand, had a 20% revenue growth and crossed $1 billion in total ARR, but saw its GAAP operating loss widen to $42 million.
Okta operates at nearly three times SailPoint’s revenue scale, generating four times the operating cash flow with a $2.46 billion cash position, while SailPoint holds $298 million in cash with a price-to-sales ratio of 12.7x compared to Okta’s 5.6x. The market favors SailPoint slightly more with 86% buy ratings versus Okta’s 64%, reflecting growth expectations and profitability concerns.
Okta’s next challenge is to maintain large customer wins for growth, while SailPoint needs to scale SaaS ARR past $1 billion and narrow losses. Okta guided Q4 revenue to $748-750 million, while SailPoint expects $290-294 million in revenue. Analysts favor SailPoint for growth potential but question its cash flow conversion. Okta offers more stability with cash flow and profitability.
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