Strong Earnings Reports from Okta, Gartner, and Salesforce Set Up for Another Leg Higher

The recent earnings reports from Okta (OKTA), Gartner (IT), and Salesforce (CRM) have created an attractive setup for another leg higher in the market. Each of these companies delivered strong earnings results, with their shares surging on the news and now forming constructive technical patterns.

Okta's identity-security business saw its revenue increase 11% year over year to $805 million, while subscription revenue climbed 12%. The company's current remaining performance obligations accelerated 14% to $2.59 billion. Free cash flow also jumped to $227 million from $162 million a year earlier.

Gartner, on the other hand, offers a somewhat different setup, combining improving earnings momentum with an unusually inexpensive valuation. Its research and advisory business reported adjusted second-quarter earnings of $4.37 per share, up nearly 24% year over year and comfortably above expectations. Free cash flow increased 9% to $378 million.

Salesforce's earnings report directly challenged one of the market's most persistent narratives this year - that generative and agentic AI could disrupt traditional SaaS businesses. Instead, its latest earnings suggested AI may ultimately prove to be considerably more opportunity than threat. The company's AI businesses are gaining substantial traction, with Agentforce and Data 360 annual recurring revenue reaching nearly $3.9 billion.

These three stocks share a broader narrative: they were all pressured by concerns that AI could disrupt established software and information-services businesses. Recent earnings are beginning to suggest that the market may have pushed this thesis too far. With earnings momentum improving and technicals turning bullish, all three stocks deserve a place near the top of investors' watchlists.