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Okta Set to Join S&P 500; Others to Join S&P MidCap 400 and S&P SmallCap 600

Okta will enter the S&P 500 before trading opens on Nov. 4, replacing Kenvue. The index change creates a scheduled rebalancing flow for both companies as passive portfolios adjust their holdings.

STOCK PHOTO · MAURÍCIO MASCARO

The story

S&P Dow Jones Indices said Okta will move from the S&P MidCap 400 into the S&P 500 before trading opens Wednesday, Nov. 4. Kenvue will leave the large-cap index as part of the same change.

The change is an index-membership decision rather than a new operating announcement. Okta's most recent fiscal-year figures show $2.9 billion of revenue, up 11.8% year over year, while Kenvue reported $15.1 billion of revenue, down 2.1% year over year, in the periods ending Jan. 31, 2026, and Dec. 28, 2025, respectively.

For Okta, the mechanical link is inclusion in portfolios that track the S&P 500; Kenvue faces the corresponding removal from that index. Okta's fiscal-year net margin was 8.1%, compared with 9.7% for Kenvue, so the index change does not by itself establish a change in either company's operating performance.

The immediate variable is the trading required before the Nov. 4 opening, including the size and timing of passive-fund flows. The next dated event is the effective date itself; subsequent price action will show whether those flows persist after the rebalance.

Our read · Fri, Oct 30

Okta (OKTA) will replace Kenvue in the S&P 500 before trading opens Nov. 4.

Why. The immediate mechanism is forced index demand for Okta and corresponding selling pressure for Kenvue before the Nov. 4 open, rather than a change in fundamentals. Okta also brings 11.8% fiscal-year revenue growth and $2.9B of revenue, while Kenvue's latest period showed a 2.1% decline on $15.1B, giving the inclusion a stronger operating backdrop for OKTA than the index move alone.

Both cases

The case it holdsOkta combines S&P 500 inclusion with $2.9B of fiscal-year revenue and 11.8% year-over-year growth, giving passive demand a growing business to absorb.
The case it breaksThe index change is mechanical and temporary, while Okta's 8.1% net margin leaves operating execution as the longer-term test after the rebalance.

What could change this view: The trade fails if the rebalance flow is smaller than expected or reverses quickly after the Nov. 4 opening, leaving operating results to dominate.

Okta stock page →
Your side is graded privately against closes after 10 trading days. Research, not advice.

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