Kevin Niederpruem

Kevin Niederpruem, on behalf of Tal Liani of Bank of America, inquired about the potential for GenAI to become a meaningful revenue contributor and its timeline, as well as the broader demand trends and secular drivers heading into fiscal year 2026.

Answer

CFO and COO Tamar Rapaport-Dagim explained that while it's hard to predict the exact pace, GenAI is moving from exploration to commercial deployment, with revenue already picking up in the foundational data services layer. President and CEO Shuky Sheffer added that the overall demand environment remains consistent with prior quarters, characterized by the same macroeconomic uncertainties, with no significant change in customer spending behavior.

Kevin Niederpruem asked if the Q4 outperformance was driven by large one-off deals or a broader inflection, and whether the positive trends seen are sustainable.

Answer

CFO Brett Tighe clarified that while there were many large deals, no single deal was outsized; the strength was broad-based, citing the top 25 deals totaling over $320M in TCV. He attributed the success to the culmination of FY'25 initiatives in security, new products, partners, and sales specialization. CEO Todd McKinnon added that while Q4 was a blowout, the leadership team expects more quarters like this as they are building a large, growing company and aim to solve the problem of identity security.