Okta joins the S&P 500 as Kenvue leaves in takeover reshuffle
Cybersecurity company Okta will join the S&P 500, the best-known index of large American companies, before trading opens on Wednesday, 4 November. S&P Dow Jones Indices announced the change on Friday, 30 October.
Okta will take the place of Kenvue, the consumer health company behind brands such as Benadryl and Tylenol. Okta makes software that checks who people — and, increasingly, computer programs — are before letting them into company systems. It will move up from the smaller S&P MidCap 400 into the S&P 500’s information technology group.
Okta’s shares rose in after-hours trading after the announcement. Its shares have climbed about 141% so far in 2026, giving it a market value of around $38.8 billion, according to MarketWatch.
Kenvue is leaving the index because it is being bought by Kimberly-Clark, another S&P 500 company. S&P said the takeover is expected to be completed soon, once final closing conditions are met.
Glaukos will replace Okta in the MidCap 400, and McGrath RentCorp will replace Glaukos in the S&P SmallCap 600. Loar Holdings will also replace LiveRamp in the SmallCap 600, because the French advertising group Publicis is acquiring LiveRamp.
Why it matters
Joining the S&P 500 is a big moment for a company. Many pension funds and other large investors track the index, so they buy shares in new members. It also puts Okta in front of far more investors than before.
The move also says something about where the market’s attention is going. Okta’s boss, Todd McKinnon, said in August that as AI tools take on more work inside companies, every one of those tools needs a trusted identity and clear limits on what it can access. Cybersecurity shares have had a strong year, with one leading fund in the sector up 55% in 2026, according to MarketWatch.
What happens next
The change takes effect before trading opens on Wednesday, 4 November. Investors will watch whether Okta’s shares hold their gains, and whether the Kimberly-Clark takeover of Kenvue closes as expected.
The takeover of Kenvue still needs its final closing conditions met, so that part of the timetable could still shift.
This article is for general information and education only. It is not legal or financial advice.
Sources
- https://www.wcia.com/business/press-releases/cision/20261030NY86102/okta-set-to-join-s-others-to-join-sp-midcap-400-and-sp-smallcap-600/ (S&P Dow Jones Indices press release via PRNewswire/WCIA, 30 October 2026)
- https://www.morningstar.com/news/marketwatch/20261030492/this-cybersecurity-stock-will-be-the-next-to-join-the-sp-500 (Morningstar / MarketWatch, 30 October 2026)
