Moderator
Thanks, Brett. I see that there are quite a few hands raised already, and I'll take them in order until the top of the hour. And in the interest of time, please limit yourself to one question. With that, we'll take the first question from Gray Powell of BTIG.
Gray Powell — Managing Director, BTIG
Okay. Thank you very much, and congratulations on the good results. Can you hear me okay? It looks like I froze there.
Moderator
Loud and clear, Gray.
Gray Powell — Managing Director, BTIG
All right. Great. So yeah, it's good to hear the commentary on platform momentum. And at a high level, I definitely think it makes a lot of sense. But I do have to admit, sometimes we picked up on conflicting data points in our fieldwork. Some partners say it's great. Others are a little skeptical. So I guess from your perspective, what gets customers over the hump and convinces them to consolidate IAM, governance, PAM, customer identity, and any other components to Okta? Are there any commonalities between customers who consolidate? And can you just kind of talk about why you see those win rates?
Todd McKinnon — CEO and Co-founder, Okta
I think the answer is it's always wrapped up in some other technological change. If you're not changing your data center, if you're not changing your apps, if you're not investing in AI, you're not going to change identity. So in all the customers I work with, it's about some other catalyzing technological change. For many years, it was cloud and building mobile apps and still cloud transformation. But what we're seeing more and more is companies are trying to move technology so they can take advantage of AI. They're modernizing apps. They're modernizing their security stack so they can give AI agents access to all of their data resources. And that's been a catalyst. I think on the partner, we had actually a pretty strong quarter with the partner channel. Many of the largest deals went through a partner.
It's an area and actually transacted, and the services were fulfilled through a partner. So it's an area of strength. I think just compared to other companies, a lot of times we're not as deep and reliant on partners. So maybe that's why some of the partner checks are coming up inconsistently. But increasing that reach with partners and presence with partners has been a big priority. And I think on all our internal data, it's manifesting itself quite prevalently. So we're very excited about that.
Eric Kelleher — President and COO, Okta
Yeah, I would add to that, Gray, and thanks for the question. I think another area to consider with customers as far as consolidating all these use cases with Okta as their identity partner is enterprises, as they get more and more mindful of the importance of securing identity across human, non-human, and agentic. They're realizing that the legacy architectures they've built with multiple products from multiple vendors and multiple stacks is fragile. And with that fragility comes insecurity. It's harder for them to have confidence that they're managing securely all their identity use cases in a way that they're confident in their ability to protect against identity-based cyber attacks. And so they see value in consolidating on one partner with Okta so that they have confidence they've got a single pane of glass to manage all of that.
By removing complexity, removing vendor distribution, consolidating on Okta's platform, they're able to better manage and be more confident in their security posture against threat actors.
Gray Powell — Managing Director, BTIG
Understood. That's helpful. Thank you.
Moderator
Okay, let's go to Ittai Kidron at Oppenheimer.
Ittai Kidron — Managing Director, Oppenheimer
Thanks, guys. Solid quarter. I guess, Todd, a very interesting commentary, needless to say, about AI and the 100 customers who are trialing it. Can you give us a little bit of color on, A, do I have to be an Okta customer to specifically deploy your AI capabilities? Or those could be applied to any company, even if they don't use you for core access management, number one. Number two, when you think about the full deployment of this, how do I think about the dollar potential here when you have customers that are spending $100,000 with you? By how much can AI truly elevate that total bill for them?
Todd McKinnon — CEO and Co-founder, Okta
Yeah, I've personally, and the entire company, is blown away by how interested customers and prospects are in this capability. I haven't seen anything like this in my experience at Okta with a new capability or new product set. So it's very, very exciting. And if you step back and think why, everyone, no surprise, big shock, they're trying to take advantage of AI and build AI workflows into their enterprise workflows. And a lot of them are stuck. And I think it's why you see some of the adoption rates of some of these platforms like Salesforce or ServiceNow or others is below what people want. And they're stuck because right now they have a couple of choices. They can either deliver agentic apps that look very much they don't have any access to the company's data.
They look very much like public Gemini or public ChatGPT, generic chatbots, and they can't get any insight from the company's data. That's one choice. Or the other choice is you take all the company's data and you shove it in a big data warehouse like Snowflake or Databricks or Palantir, and then the agents have way too much access. They can just see everything and they do unintended things. And so people are stuck and they're paused and they're saying, "Wait a minute, we're not going to roll these things out." And there's a huge, huge cohort of companies that are trying to do something with AI and they're stuck.
And then they come to us because what we can do is what we're very good at is figure out who can access what, not only for people, but now for AI agents and help them filter who has access to what, how you deploy these applications in a way that gives the right information to the agent and the right security level and lets them observe the behavior and build the right use cases for the business and not without over-permissioning at all. It is early days. We announced and released these products just in the last couple of months after our conference in September. So it's early days. But we do have several deals that have been transacted for these products. We gave the example of the financial company that is rolling out these agents and purchased the product. It's early days, but it's incredibly exciting.
I think it's because longer term, if you look at our market, we have a $50 billion TAM for workforce identity, a $30 billion TAM for customer identity. Owning and governing the agentic identity layer and securing AI can be a bigger TAM than both of those. I mean, it's several years out and it's going to be a lot of change and growth there, which by the way, is I think one of the reasons why companies are coming to us because talk about a dynamic environment. You have a new model release coming out every couple of months and Gemini is better and now OpenAI is better and then Anthropic is better and the technology is all shifting around it and customers don't want to get locked in. They're hesitant to commit to the Microsoft stack or the Google stack. They want flexibility.
By doing this access layer and an independent and neutral third party, they feel like they're going to have choice as this amazing platform of agentic enterprise unfolds. It's very exciting. The company's number one priority now is to take advantage of this opportunity. We're very clear in our R&D and our go-to-market. We're going to focus on this opportunity. That's how big we think it is. It's incredibly exciting.
Ittai Kidron — Managing Director, Oppenheimer
Todd, do you think that the go-to-market around this can change, meaning instead of you selling it to the enterprise, actually talk to the agent companies and have them bundle already ahead of time your identity security with their agents such that the customer doesn't have to do this?
Todd McKinnon — CEO and Co-founder, Okta
Absolutely. And we're already doing this with trying to set the industry standards around access. We've mentioned before Cross-App Access, which is an industry standard around how you actually give access to these agents across multiple agent platforms connecting to multiple end repositories of information, whether it's a database, a warehouse, or application. And we're really excited that the MCP standard now recognizes Cross-App Access as an extension of MCP. So think about that now. If you're using MCP protocol to standardize some of these interactions between agents and resources, Cross-App Access fits right into that now. So it's a very insightful question, and we're working hard on that as well.
Eric Kelleher — President and COO, Okta
Just as an example for our customers, customers that are using Auth0 for AI Agents to build agents will get support for cross-app access out of the box, meaning any agents that they build with Auth0 for AI Agents will be discoverable by an IdP that also supports the Model Context Protocol. Okta's IdP also supports cross-app access to the Model Context Protocol. Customers developing agents with our technology will be producing agents that any company can secure more precisely. The Okta platform will help customers discover agents that have been deployed and then manage those agents as well. We're already well on the path to ensuring that we're productizing this opportunity using our existing capabilities.
Ittai Kidron — Managing Director, Oppenheimer
Thank you.
Moderator
Yeah, let's go to John DiFucci at Guggenheim.
John DiFucci — Senior Managing Director, Guggenheim Partners
Thanks, Dave. And listen, guys, in the past, I'm going to ask the question that I think we're all going to have to answer. But in the past, you've given an early look to next year, and you didn't do that this year, which I think is the right call given how much next year depends on the fourth quarter, like Brett said. I also realize that there are other reasons to give that early look because you had other things happening at the company in prior years. But even if no new numbers, you don't give any numbers, can you give just some subjective commentary about how the world looks for Okta over the next year, just generally even? Because this quarter looks good.
This sucks down a little bit after hours because I think what I'm saying, you didn't give that guide and people are used to it, but they'll get over that. This quarter does look good, and it sounds like there's a lot of even more traction behind the numbers happening. So just a little commentary on that would be helpful.
Brett Tighe — CFO, Okta
Todd, do you want to take it? I can talk to the guidance.
Todd McKinnon — CEO and Co-founder, Okta
I was just going to say, one thing I was going to say about the fourth quarter is it is our big, seasonally. Seasonally, it's our biggest quarter of the year. The opportunity is tremendous for us at Q4, and we're very focused on executing that well across all of the product lines and all the regions and all the ways we execute in the fourth quarter. It's a big quarter, but we're set up to deliver success there, and so that's very optimistic. Brett, maybe you can talk about a little bit of the guidance philosophy.
Brett Tighe — CFO, Okta
I was actually going to touch John on just the business momentum before I get into the guidance because I think that's more of your question than I'm happy to get into, which is, look, Q3 was another really solid quarter for us. You heard Todd talk about it. You heard me talk about it. I'm sure Eric will touch on it throughout this call. But we're pleased with the traction that specialization is getting. We're seeing that AE productivity number, the number you've heard me talk about for years now, get into a region that we're quite pleased with. Yes, it's not perfect everywhere, but it is exciting to see it from an overall perspective because that means the specialization is working. And we're excited about that. And what that's doing is that's giving us confidence to be able to start to add more reps into the system.
So you know for a while, that's something you and I have talked about, and a bunch of us on this call have talked about, is do we have the right amount of capacity out in the field to be able to address the demand? And so we started adding capacity last quarter. We've added more in Q3. We're going to add more in Q4. We expect to add more in FY 2027. So that tells you we have confidence in the opportunity for a whole host of reasons, right? It could be what Todd has talked about earlier. Okta securing AI is a massive opportunity for us. You can talk about the other new products like governance, PAM, highly regulated identities on the Auth0 side. We feel like the organization is headed in the right direction.
That's why you see us growing sales and marketing expense the last two quarters year-over-year. That's something you haven't seen in a while because we're having that confidence in the organization to be able to go out and address this opportunity. So we're excited about what we're seeing in the business. So hopefully that gives you more of the context. I'm happy to talk about the guidance. I mean, I can get into that for a second just so we're all on the same page. Todd touched on it a second ago. Because Q4 is so large, it creates a need for us to be able to embed an amount of conservatism in there that makes a guidance five quarters out not that helpful. Frankly, the whole point of guidance is to be helpful. If it's not helpful, we shouldn't do it.
So we're not going to do it this time. And we will update all of you after we get past our seasonally largest quarter of the year at the end of Q4. And so then we can give you a much cleaner look at the world and not have to embed some conservatism associated with our largest quarter. Now, with that said, John, I got to bring up current RPO because I know we've got to talk about it. And if you look at, if you want a number for FY 2027, or if you want to approximate a number for FY 2027, I would take a look at the Q4 guided current RPO and apply a coverage ratio to it. That annualized coverage ratio, you guys have all heard me talk about for the last few years.
Go ahead and take current RPO, divide it by the coverage ratio, and then add some professional services on the top. And that's going to get you to a rough approximation from a revenue perspective. Now, obviously, the piece of the formula I haven't given you is the coverage ratio. That coverage ratio, I probably would use something in the region of FY 2026. So hopefully that gives you a little bit of, John, on how the business is doing and why we're excited and optimistic about Q4 and frankly beyond Q4, and also a little bit why we decided to hold off on giving a guidance for FY 2027 because we didn't feel like it was being helpful to all of you anymore.
John DiFucci — Senior Managing Director, Guggenheim Partners
That all makes sense. I really appreciate all that. Thank you.
Eric Kelleher — President and COO, Okta
Yeah, just a little added color commentary to Brett's comments as well. We've talked throughout this year on the changes we made in February and go to market to specialize in the platforms. And we've talked about one of the key reasons for that strategy is we had decided that specializing on the buyer persona was important, but also that our pace of product innovation on both the Okta platform and Auth0 platform had accelerated to the point where it was just really hard for one seller to keep pace with all the capabilities coming out on the platform. And we talked in Q1 about how we were on track for our plan for this year to implement that change and absorb the cost of change management. We talked about having a solid Q2. You've heard us here talk about a solid Q3.
One indicator that we've shared of how successful we're being executing that strategy, what Brett talked about earlier, that our AE attrition right now is near a multi-year low and our eight-year, ten-year is near a multi-year high. AE productivity is sequentially increasing. When we think about how we're doing implementing that significant shift in territory assignments and account assignments and in go-to-market motion overall, we've got a lot of indicators that this strategy is the right strategy for us. It's also created space in our sellers to be able to take on new initiatives. We're talking today about Okta Secure AI and just how impressed we've been with how much that story is resonating for our customers right now is a hugely strategically important need.
We can attack that need now because we've got more focus on that particular use case for that particular buying persona, so we're very optimistic on the strategy playing out.
John DiFucci — Senior Managing Director, Guggenheim Partners
That all makes sense, Eric. Thank you. And it's showing. It's showing. Thanks.
Moderator
Okay. Next up, we'll go to Fatima Boolani at Citi.
Fatima Boolani — Managing Director and Co-head of Software Equity Research, Citi
Hey, good afternoon. Thank you for taking my question. Can you hear me okay?
Moderator
Yeah, loud and clear, Fatima.
Fatima Boolani — Managing Director and Co-head of Software Equity Research, Citi
Good. Todd, this one's for you. We've been really fascinated with the broader themes around agentic commerce. So I wanted to get your pulse on where the portfolio is most relevant to capitalizing on that opportunity. And where do you see effectively your customer identity business playing a very meaningful role in that? And I guess, Eric, just to even loop you into the conversation, how are conversations with customers trending with respect to building a stack behind some of these really interesting opportunities that are going to unfurl in the next couple of years? Thank you.
Todd McKinnon — CEO and Co-founder, Okta
I think it's a big deal. I think agentic commerce, and if you have a website that's doing customer support or e-commerce, you're going to have some version of agents on there very quickly if you don't already. And if you're building those agents, Auth0 for AI Agents is the right solution. It shortcuts the ability to have those agents connect to multiple systems on the back end. It helps you put fine-grained authorization inside of your agentic flow. So it's purpose-built. And I think it's a big trend we're talking about here. It's the same trend we're talking about here. Whether you're managing agents for internal deployment to help people get work done in their enterprise workflows or your B2C use cases moving toward a more agentic interface versus the person interface in the past, it's the big trend we're talking about.
Eric Kelleher — President and COO, Okta
Yeah. And I'll add to that. We talked about in the quarter at our user conference, the Okta team. We talked about the customer conversations around this challenge. And we shared a survey that we had run of a few hundred enterprise customers reporting that 91% of them had agents in production and only 10% of them were confident they had them secured. The need is very acute and it's very urgent. And it's a key reason why this is elevated to such a prominent conversation. Todd talked about one example of where our customers are struggling with this in fine-grained authorization. So for builders of agents, they need to solve for at least two distinct challenges. One is ensuring their agents can be discovered. And the second is ensuring that agents are only authorized to do specific things, that they have access to specific corporate assets and not others.
Auth0 provides the capabilities to solve both of that. With support for cross-app access and Model Context Protocol, agents built through Auth0 can be discovered and managed properly. Auth0's fine-grained authorization allows agents to be built in a way that their privileges can be very, very finely tuned, which is hugely important to our customers in that space. The second part of that challenge that our customers have is they don't know. They tell us they don't know what agents are deployed in their environment. They don't know what their users have turned on and what their users' agents don't have access to. This is the challenge of discoverability and being able to discover agents.
So on the Okta platform side, our Identity Security Posture Management product scans corporate networks to find service accounts and the privileges of those service accounts, but it will also now help discover agents that are implemented and deployed as long as they support the cross-app access protocol, the extension to MCP. So the problem of discoverability is something they need help with, and we're well-positioned to help them with that. And the other related challenge is not only knowing that they exist, but then protecting the identity of those agents to ensure the agents can't themselves be impersonated by a threat actor and to ensure that those agents are properly authorized to take the actions that they're attempting to access. So the Auth0 platform on the build side is hugely important for our customers.
The Okta platform on the discover and manage side is important for them as well. That also includes things like privileged access, allowing the agents to have tokens that are appropriately vaulted, and governance, having them provisioned and de-provisioned based on just-in-time requirements. They don't have agents live with standing privileges when they don't need to be standing.
Fatima Boolani — Managing Director and Co-head of Software Equity Research, Citi
Yeah. And I think you should see the commercial impact in both your businesses as opposed to what intuitively I would think would just be on the customer identity side.
Todd McKinnon — CEO and Co-founder, Okta
Yeah. I think, Fatima, I could think of a meeting I just had a couple of weeks ago. And this was how it all comes together. So this company is a large mortgage company, online mortgage company. And they think about it as when people come to their website and they start browsing for mortgages and they answer the customer's question in an agentic workflow. And then it actually flows all the way through their origination business on the back end, which is very much enterprise workflows where people have to use human-in-the-loop system to make approvals for mortgages that are over a certain amount. They have to maybe automate the entirety of the mortgage process so they can fulfill it without anyone, any person. So it's like external facing on their website in the B2C, and it also goes all the way back into the enterprise.
And they want that all to come together. And the business value for them is very simple. Their conversion rates on the mortgage is up 5x if there's no delay. There's no delay in the approval, or they don't have to go for some other thing. So it's a very clear ROI. And before they were talking to us, they were really stuck on these questions we're talking about. Like, how do we make sure that the consumer-facing agent has the right access to the back-end systems? How do we make sure that the enterprise-facing agents have the right permissions as we automate some of those workflows and don't give overly permissive access to these agents? And the enterprise all comes together in that very concrete example.
Fatima Boolani — Managing Director and Co-head of Software Equity Research, Citi
I appreciate that. Thank you.
Moderator
Okay. Next up is Josh Tilton at Wolfe.
Josh Tilton — Director, Wolfe Research
Hey, guys. Thanks for sneaking me in. Can you hear me?
Moderator
Loud and clear. You're good, Josh.
Josh Tilton — Director, Wolfe Research
Brett, not to put you on the spot here, I do appreciate the color on how to think about next year's revenue. But to kind of simplify it without the math, bookings growth year to date is kind of growing where the street is for revenue growth next year. So how do we think about that? What you're doing so far this year, what it implies for next year, are you comfortable with where the street sits? But I'm just trying to understand. Bookings growth has been good. It's kind of in line with the implied or where the street is for revenue next year. How do you feel about where the street sits today?
Brett Tighe — CFO, Okta
I think in general, if you were to take our comments and boil them into a couple of little simple things, which is, one, you can feel the business momentum growing. Right? Eric talked about it a few minutes ago around how we had to make some changes at the beginning of this year to further specialize the field. You can feel that business momentum growing as we go into Q4. And we think that that business momentum on the back of us specializing in the field is helping. In addition to the market seems to be in a good place for us for all these new products, whether it's Okta securing AI, whether it's governance, or all these new products that we've talked about over the last several quarters.
So I don't have an exact answer for you in terms of where the street is and bookings growth and all that sort of stuff. But the really important thing is you can see the growing confidence in the organization, and you can see the productivity. You can see the optimism. You can see all these things headed in the right direction. And that's why you can kind of hear the tone from the three of us and the way we've been talking about it throughout this call is being very positive. And we feel like the goal that we've been talking about for a while of accelerating growth in the medium term is something that is on the horizon for us, which is exciting. I'm not saying when it's going to happen or how it's going to happen.
I'm just saying that we do feel that that business momentum is headed in the right direction, and that's why we're adding capacity, like I said a few minutes ago, to go out and address that demand.
Josh Tilton — Director, Wolfe Research
Super helpful. Thank you.
Moderator
Next up is Jonathan Ho, William Blair.
Jonathan Ho — Partner, William Blair
Hi. Good afternoon. I wanted to see if you could update us a little bit on your sales realignment efforts earlier this year and how maybe the product suites have had an effect on that go-to-market. Lastly, how do we think about sort of the pace for net retention over time? It's been sort of sitting at this 106% level for a bit. I know that's from prior periods, but how do we think about maybe the mechanics of that recovery? Thank you.
Eric Kelleher — President and COO, Okta
Hi, Jonathan. I'll take the first part of that question. I'll let Brett take the second part. The go-to-market specialization for us, as we've said throughout this call, we feel it's been very effective, and there's a few ways that that has played out for us. On the front end, the top of the funnel, we have specialized our demand gen teams for their brand generation work, their pipe generation work, and we are pleased with the pipe that we've been able to generate in the business. We also have had more focus on our distinct personas, so we've had an opportunity in our field to get closer to the very specific granular needs of our CIO and CISO buyers and of our developer buyers, and we've been able to focus our R&D efforts on the Okta platform and the Auth0 platform on those personas.
And so we've seen significant innovation improvements tying specifically more specifically to a discrete buying persona, which has allowed us to continue to capture market. Things like Okta customer identity, which we talked about last quarter, has really come back as part of our refocusing on the Okta platform for the enterprise buyers. So that specialization has been very helpful. One of the questions this group has raised in prior quarters is how the field organization was feeling about specialization, whether they felt this was a positive or something that was a concern about their ability to be successful. And as I mentioned earlier, we're seeing right now our sales attrition is near a multi-year low, and our sales tenure is near a multi-year high.
We're feeling very confident in not only the model's capability to produce financial results, but we're feeling very confident that our own field organization is very engaged and feels that they're being successful in this model, which is what we expected, and we're pleased to see it playing out the way that we expected.
Brett Tighe — CFO, Okta
Yeah. Okay. So I'll talk about it in a second, Jonathan. But one thing that Eric was saying made me think of around the specialization. One of the reasons why the new product introduction percentage has remained quite healthy as a percentage of total bookings, we've talked about it over the last three, four quarters, is because people are starting to really get into the details on the products, be able to sell it directly to a specific economic buyer, and it helps them just be more familiar with things. Anytime you're more familiar with something, you're probably going to be better at it. And so that's been the theory behind why we did this, and it seems to be playing out in that regard.
Jonathan Ho — Partner, William Blair
That's a great call out.
Brett Tighe — CFO, Okta
In terms of the NRR, the one thing I would say before we get into NRR is gross retention remains healthy. It's one of those things that we're quite proud of, and we expect to continue over the long run with that, given the value that we drive for our customers day in, day out. In terms of where the range is and where it could be, 106% is right in the range we've talked about. You've heard me talk about it every quarter for a while now, and this is where the range we thought it was going to be. So it's traveling in the range that we expect it to be. We probably think it tracks in this range, or we do think it tracks in this range for Q4.
I don't have a great answer for you beyond that, Jonathan, because we are still early in our fiscal year planning. But obviously, if we want to grow faster, this is something we're going to focus on because it's on the back of that strong gross retention. How can we keep doing these upsells and doing more NPI and more Okta Securities AI to be able to help ourselves in that number over the long run? Obviously, there are dynamics that go in there. If we sell more new business, it's a little bit of a headwind to new NRR, and if we sell more upsells, it's a tailwind. So there's always a balance in that number that we should keep an eye on when we're looking at the overall total business.
Jonathan Ho — Partner, William Blair
Great. Thank you.
Moderator
Next, we'll go to Annick Baumann at Jefferies.
Annick Baumann — VP of Equity Research, Jefferies
Hi, guys. I'm in for Joe Gallo today. Thanks for taking our question. Brett, you've been very candid in the level of prudence and guidance the last couple of quarters, but you've also seen larger beats historically in 4Q over the past couple of years. So can you comment on the puts and takes to guide in 4Q? You've talked about conservatism there, but just the puts and takes to it. And then also, is the guidance framework still in line with what we've seen historically?
Brett Tighe — CFO, Okta
Yeah. I mean, just in general, just to answer your second question first, we're still trying to get closer to the 10. Now, we had a nice beat this quarter on current RPO because the team just flat out outperformed. They did a really nice job, and so I'm happy to be wrong in that situation. But we want to get closer to the 10. That's been our stated goal now for several quarters. And if you look at Q4, we've removed any specific line items. Right now, it's just down to market conditions and our own internal expectations. So it's real simple, and we're looking forward to executing in Q4 as best we can because you've heard us talk about it. It is our seasonally largest quarter, and we want to finish a strong FY 2026 with a bang.
Moderator
Great. Next up, we'll go to Shrenik Kothari with Baird.
Shrenik Kothari — Senior Head Director of Cybersecurity and Infrastructure Software Equities, Baird
Yeah. Thanks for taking my question. I think there was a question on consolidation and then a lot on agent. Try to combine the two. I believe as you guys head into 2026, kind of planning cycles, and I think Todd, you did mention there's a desire for a single control plane to manage agentic tech as well. Are you seeing signs that buyers are also thinking about consolidating AI IAM governance around a vendor? And just based on whatever you saw so far in terms of those 100+ engaged customers, walk us through a typical conversion timeline from interest towards the ACV and booking ARR things.
Todd McKinnon — CEO and Co-founder, Okta
Yeah. You're right. The two trends are very related. Thinking about the agentic future for these customers and then thinking about what that means for their identity stacks in the short term. We're working with one of the largest Fortune 50 customers of ours on a wholesale replacement of Ping Identity, SailPoint, CyberArk, and several other identity vendors across their whole stack to standardize on Okta products. And the driver there is two things. It's cost. They wanted to have less cost in their environment, and they wanted to have better functioning integrated products. That's part of the driver. But the bigger driver was actually something very simple, which is this company has 5,500 applications. And all these years with these legacy vendors, they only had 1,500 of them hooked up to their central identity system.
And so they're thinking about an agentic future where they want to give their agents and their agent infrastructure access to every application that they have. And they only had a paved path for 1,500 of them because they only were able to get that many on their identity platform with the old technology. So when they think about standardizing, they think about moving all 5,500 applications to Okta. And then that cuts costs. It makes the system work better because governance is integrated to access management, is integrated to privilege. But more importantly for them, I think it enables this agentic future where they can give access in a controlled, governed, managed way to all these agents doing all these workflows that's behind a standard IdP.
So they're all kind of interrelated, but I think they all point north for Okta, which is a very good position to be in.
Moderator
Next up, we'll go to Brad Zelnick at Deutsche Bank.
Brad Zelnick — Managing Director, Deutsche Bank
Great. Thanks a lot, Dave. And nice to see everybody. Guys, in Q3, I think you've added more headcount this quarter than you have in three years, which I take as an expression of confidence, especially knowing how devout followers you guys are about Rule of 40. And that's in addition to a lot of other constructive commentary tonight. But just to follow on DiFucci's question and Josh Tilton's question as well, if I take, Brett, your comments on CRPO coverage ratios, quick back of the envelope gets me to like 9.5% revenue growth the next year. And I just want to make sure that I heard you correctly and I'm interpreting that right.
Brett Tighe — CFO, Okta
The simple math is just current RPO, right? And you take the coverage ratio, and the coverage ratio just to make sure everyone is clear on what that is. Let's say we can calculate the FY 2026 coverage ratio together. All you do is you take Q4 FY 2025 current RPO and you divide it by next year.
Brad Zelnick — Managing Director, Deutsche Bank
For here's the guide or the actual?
Brett Tighe — CFO, Okta
No, I'm saying for the coverage ratio that you're going to apply to current RPO, right? Because it's current RPO guidance times the coverage ratio plus professional services.
Brad Zelnick — Managing Director, Deutsche Bank
Yep.
Brett Tighe — CFO, Okta
Okay, so you've got Q4 current RPO guidance. We just gave it to you, right? $2.45 billion.
Brad Zelnick — Managing Director, Deutsche Bank
Yep.
Brett Tighe — CFO, Okta
The coverage ratio is the most important factor in the math that we don't have an exact number for, but I'm trying to give you a rough approximation, and if you wanted to use, you don't have to use FY 2026, but it's the closest in years, so it might make sense or somewhere in that zip code, so the FY 2026 version, all it is, is Q4 FY 2025 current RPO, which was $2.25 billion. And you divide that by the FY 2026 subscription revenue, and that's going to get you a number. We haven't given you a guide for a subscription revenue, but you can figure it out, Brad.
Brad Zelnick — Managing Director, Deutsche Bank
I got it.
Brett Tighe — CFO, Okta
It's pretty easy. That number is probably about 79% or thereabouts.
Brad Zelnick — Managing Director, Deutsche Bank
Understood.
Brett Tighe — CFO, Okta
Then you just put that in the formula. Professional services, I think you guys can come up with a rough estimate. That's all you do. Q4 FY 2026, 2.45 divided by 0.79 plus whatever you're going to put in for professional services. I'm giving you advice to use FY 2026 as a rough approximation. I'm not saying that's what you have to use. Just seems logical given it's the closest year to what we're about to do in FY 2027. That's all.
Brad Zelnick — Managing Director, Deutsche Bank
Totally get it. And I appreciate you making it very clear. Maybe just on the other part of my question, when I see you guys hire like this, it really, to me, makes a statement, and I want to make sure I'm interpreting that signal the right way. Am I to assume that the bulk or strong mix of those headcount adds are go-to-market? Is there anything else to know about the composition of all those adds that you've added in Q3?
Brett Tighe — CFO, Okta
Yeah. It's a mix of both go-to-market because what we've talked about already today, and then also continuing to add into some of the lower-cost regions to be able to bulk up the capacity in places like R&D or other areas that can help us be able to build product faster or in G&A to be able to become more efficient and be able to get through things faster. So it's really a variety of areas for us, but it's really go-to-market and then lower-cost regions are really the two places that we're adding in.
You're on mute there, Brad.
Brad Zelnick — Managing Director, Deutsche Bank
Thanks very much.
Brett Tighe — CFO, Okta
No problem. It's my first-ever algebra lesson on an earnings call. Thank you, Brad. Brad wanted to dive in, so I felt like it was necessary.
Moderator
All right. Next up, we have Yun Kim at Loop Capital.
Yun Kim — Managing Director, Loop Capital Markets
All right. Thanks, David. Hey, Todd. So for some of the early adopters of AI agents that you're working with, are these agents from software vendors like Salesforce and ServiceNow, or are they custom-developed AI agents? And is your approach to securing AI agents different for these two types of agents, given that Auth0 for AI agents is really targeted at developers?
Todd McKinnon — CEO and Co-founder, Okta
It's a really good question, and it's every customer we talk to, they're worried about all of the above. I would say that the actual most concrete implementations are agents they've built themselves. I think that the deployment from some of the packaged application vendors you talked about are maybe a little bit more behind in terms of deployments, but the companies that are building their own, that's their first and foremost concern, but everyone's concerned about. They know it's going to be a multi-platform world. There's so much value to be delivered. There's so many frameworks. There's so much innovation. There's so many models. They understand it's going to be a multi-platform world, which is why our message is really resonating, which is like, "Hey, if you get identity security and agentic security is absolutely critical, you can't just give agents access to everything.
You have to govern, control, and monitor the access." Now, if you choose to do that in one security platform or one cloud platform, everyone understands that it's going to be strong lock-in, and you're going to be stuck with those models, those frameworks, and have gravity in that environment. And people are leery of that because they know that it's a fast-moving environment. And it'd be kind of like when I talk to customers, it'd be kind of like you had to choose one streaming platform. You just won, and you couldn't switch. What would you choose, right? You'd be careful because all the good stuff is on the other one. And if you choose Netflix, you'd want to go over to Prime. If you choose Prime, you'd want to go over to Paramount. And they don't want to choose one platform. They want flexibility.
They want to be able to use different platforms and pick the best content off a different platform. So that's really resonating with customers, which is what's driving this interest, which is why we're working so hard to capitalize on it.
Yun Kim — Managing Director, Loop Capital Markets
Okay. Great. Thank you.
Moderator
Next, we'll go to Mike Cikos at Needham.