Okta (NASDAQ:OKTA) Releases Earnings Results, Beats Estimates By $0.09 EPS

Okta (NASDAQ:OKTA) posted its earnings results on Wednesday. The company reported $1.05 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.09, FiscalAI reports. Okta had a net margin of 9.63% and a return on equity of 4.50%. The firm had revenue of $805.00 million for the quarter, compared to the consensus estimate of $793.00 million. During the same period last year, the firm posted $0.91 EPS. The company’s revenue was up 10.6% on a year-over-year basis. Okta updated its FY 2027 guidance to 3.900-3.940 EPS and its Q3 2027 guidance to 0.920-0.940 EPS.

Here are the key takeaways from Okta’s conference call:

• Core business momentum strengthened, with acceleration in workforce and customer identity ACV, record Q2 bookings, strong pipeline conversion, and more than 600 customers generating over $1 million in ACV.
• New products represented approximately 30% of bookings, with Identity Governance the largest contributor and deals including new products producing roughly 40% higher ACV on average.
• Okta reported growing demand for its AI-agent security products, including dozens of Q2 deals and several million-dollar-plus wins, but management emphasized that the business remains very early and AI revenue will be immaterial to FY2027.
• Management raised full-year FY2027 expectations to 10%–11% revenue growth, 26% non-GAAP operating margin, and 28%–29% free-cash-flow margin, while Q3 guidance calls for 10% revenue growth and 11%–12% current RPO growth.
• Okta completed its $350 million convertible-note cash settlement and repurchased approximately 1.5 million shares for $125 million; however, shifting more professional-services work to partners is expected to reduce FY2027 revenue growth by about one percentage point.

Okta Stock Performance

NASDAQ OKTA opened at $172.91 on Friday. The firm has a market cap of $30.05 billion, a PE ratio of 104.16, a P/E/G ratio of 4.83 and a beta of 0.77. Okta has a one year low of $62.66 and a one year high of $174.85. The firm’s fifty day moving average is $140.37 and its two-hundred day moving average is $105.10.

Insider Buying and Selling at Okta

In related news, CEO Todd Mckinnon sold 68,936 shares of the firm’s stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $146.62, for a total transaction of $10,107,396.32. Following the transaction, the chief executive officer owned 38,484 shares of the company’s stock, valued at $5,642,524.08. This trade represents a 64.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Robert Kelleher sold 3,977 shares of the business’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $114.10, for a total value of $453,775.70. Following the completion of the transaction, the insider owned 19,618 shares in the company, valued at $2,238,413.80. This trade represents a 16.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 165,347 shares of company stock worth $21,827,342 over the last three months. 4.61% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Okta

Several large investors have recently modified their holdings of OKTA. Utah Retirement Systems grew its position in Okta by 0.6% in the 4th quarter. Utah Retirement Systems now owns 28,605 shares of the company’s stock valued at $2,473,000 after buying an additional 163 shares during the last quarter. Kestra Advisory Services LLC lifted its stake in shares of Okta by 1.7% in the 4th quarter. Kestra Advisory Services LLC now owns 9,685 shares of the company’s stock worth $837,000 after acquiring an additional 166 shares during the period. O Shaughnessy Asset Management LLC boosted its holdings in shares of Okta by 3.1% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 5,745 shares of the company’s stock valued at $497,000 after acquiring an additional 173 shares in the last quarter. Diversify Advisory Services LLC increased its stake in shares of Okta by 0.7% during the second quarter. Diversify Advisory Services LLC now owns 27,086 shares of the company’s stock worth $2,708,000 after acquiring an additional 190 shares during the period. Finally, CreativeOne Wealth LLC increased its stake in shares of Okta by 10.3% during the third quarter. CreativeOne Wealth LLC now owns 2,868 shares of the company’s stock worth $263,000 after acquiring an additional 267 shares during the period. Hedge funds and other institutional investors own 86.64% of the company’s stock.

Okta News Roundup

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly earnings beat expectations: Okta reported adjusted earnings of $1.05 per share, ahead of the $0.96 consensus estimate, while revenue rose 10.6% year over year to $805 million, exceeding forecasts of approximately $793 million. Okta pops after topping estimates
• Positive Sentiment: Raised fiscal 2027 guidance: Management now expects full-year revenue of roughly $3.216 billion to $3.226 billion, up from its previous forecast. Third-quarter revenue guidance of $813 million to $817 million and adjusted EPS guidance of $0.92 to $0.94 also exceeded analyst estimates. Okta lifts full-year outlook
• Positive Sentiment: AI is strengthening the cybersecurity opportunity: The growth of AI agents and increasingly sophisticated AI-powered threats is driving enterprise demand for identity controls, access governance and security tools. Okta launched Agent SSO to help customers manage identities and permissions for AI agents, while new products reportedly contributed about 30% of bookings. Okta launches Agent SSO
• Positive Sentiment: Analyst sentiment improved: Several firms raised price targets following the results, including Morgan Stanley and Truist to $200, RBC to $195, and JPMorgan to $190. Wells Fargo also upgraded the stock, citing signs that Okta’s growth strategy is turning a corner. Wells Fargo upgrades Okta
• Neutral Sentiment: Investment consideration: Okta’s improved outlook and AI positioning have increased investor optimism, but the stock is trading near its 52-week high and carries elevated valuation measures, including a P/E ratio above 100. Some analysts, including Citi and Mizuho, maintained neutral ratings with $165 targets, signaling limited near-term upside at recent levels.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on OKTA shares. HSBC downgraded shares of Okta from a “buy” rating to a “hold” rating in a research note on Monday, July 6th. Jefferies Financial Group lifted their target price on Okta from $170.00 to $200.00 and gave the stock a “buy” rating in a research report on Thursday. Needham & Company LLC boosted their target price on Okta from $140.00 to $200.00 and gave the company a “buy” rating in a report on Thursday. Piper Sandler upped their target price on Okta from $105.00 to $160.00 and gave the company a “neutral” rating in a research report on Thursday. Finally, Citigroup restated a “market outperform” rating on shares of Okta in a research note on Thursday. Two research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $168.92.

Okta Company Profile

Okta, Inc is a publicly traded provider of identity and access management solutions, headquartered in San Francisco, California. Founded in 2009 by Todd McKinnon and Frederic Kerrest, the company completed its initial public offering in April 2017. Under the leadership of McKinnon as chief executive officer and Kerrest as chief operating officer, Okta has grown into a leading vendor in the cybersecurity space, focusing on secure user authentication, single sign-on and lifecycle management for digital identities.

At the core of Okta’s offering is the Okta Identity Cloud, a suite of cloud-native services that enable organizations to manage user access across web and mobile applications, on-premises systems and APIs.