Okta to Join S&P 500, Replacing Kenvue, Before Trading Opens on November 4
Key Facts
S&P Dow Jones Indices said on October 30, 2026, that Okta will replace Kenvue in the S&P 500, with the change taking effect before trading opens on Wednesday, November 4. The index provider linked the decision to Kimberly-Clark’s acquisition of Kenvue, with the deal still subject to final closing conditions. The change adds an identity and access management company to the information technology sector of the index and removes Kenvue, classified in consumer staples. The announcement came on a day of broad declines in U.S. stocks, with the S&P 500 losing about 1.82% and the Nasdaq Composite falling 2.86% at the close. Okta shares closed at $208.24, while Kenvue ended the session at $19.31.
Okta shares moved in two directions during Friday’s session: they fell more than 6% in regular trading amid a broad decline in technology stocks, then rose 2.1% in extended trading after the company was named to the index. Investing.com coverage said the after-hours rebound pared some of the session’s losses. The divergence indicates that the announcement came at a time of pressure on technology stocks, while the index selection added a supportive factor for the shares after regular trading hours. EL7’s available data provide only closing prices for the two shares, so the session record is limited to Okta’s close at $208.24 and Kenvue’s at $19.31. The index itself closed at 7580.07 on October 30.
Passive funds and exchange-traded portfolios tracking the S&P 500 typically buy shares of an incoming company to match the index’s weightings, according to Investing.com coverage. This may result in demand for Okta shares from these portfolios when the change takes effect, but the announcement did not specify a volume for that demand. The adjustment involves a cascading move across three indices: Glaukos moves to the S&P MidCap 400 to replace Okta, while McGrath RentCorp replaces Glaukos in the S&P SmallCap 600. The announced change therefore extends beyond the seat Okta will take in the main index to membership in the other two indices. All three changes take effect before trading opens on November 4.
Okta operates in identity and access management, offering a cloud platform to control users’ access to technology, according to the company’s description and coverage published after the selection announcement. The company says co-founders Todd McKinnon and Frederic Kerrest founded it in 2009 in the “identity as a service” category. In results for its second quarter of fiscal 2027, which ended on July 31, 2026, Okta reported revenue of $805 million, up 11% year over year. Subscription revenue was $793 million, up 12% from the same period. Generally accepted accounting principles operating income also rose to $107 million from $41 million, while net income climbed to $116 million from $67 million.
Okta said current remaining performance obligations, which represent subscription revenue expected to be recognized over the following twelve months, stood at $2.585 billion in the second quarter, up 14% from the same quarter of fiscal 2026. The company raised its fiscal 2027 revenue outlook to a range of $3.216 billion to $3.226 billion, equivalent to annual growth of between 10% and 11%. Speaking about the company’s activity, CEO and co-founder Todd McKinnon said, “Every agent needs a trusted identity and clear controls over what it can access and do.” Kimberly-Clark Chairman and CEO Mike Hsu said when the deal was announced that combining the two companies aims to create “a leading global health and wellness company.” The scheduled effective date for the index changes remains before trading opens on November 4, alongside the completion of the closing conditions for the Kenvue deal.