Okta (NASDAQ:OKTA) Issues Earnings Results

Okta (NASDAQ:OKTA) posted its earnings results on Wednesday. The company reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.85 by $0.05, FiscalAI reports. Okta had a net margin of 8.05% and a return on equity of 4.22%. The business had revenue of $761.00 million for the quarter, compared to the consensus estimate of $749.87 million. During the same quarter last year, the firm posted $0.78 EPS. The company’s revenue for the quarter was up 11.6% on a year-over-year basis. Okta updated its FY 2027 guidance to 3.740-3.820 EPS and its Q1 2027 guidance to 0.840-0.860 EPS.

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

• Okta said its portfolio of new products drove meaningful bookings, accounting for approximately 30% of Q4 bookings, and deals including new products show about a 40% average contract uplift; Okta Identity Governance now has over 2,000 customers.
• The company reported early traction for its AI agent offerings (Auth0 for AI Agents and Okta for AI Agents), citing several Q4 wins and a growing pipeline — management called agentic identity a major long-term TAM expansion even though agent revenue is still small versus a $3B revenue run-rate.
• FY27 guidance is conservative: 9% total revenue growth (10% subscription), non-GAAP operating margin ~25–26%, with management flagging a ~1-point revenue headwind from shifting professional services to partners and a ~1-point free-cash-flow headwind tied to lower interest income and debt settlement.
• Go-to-market momentum accelerated — Q4 saw a record ~$1.3B total contract value, surpassing $3B ACV; channel partners were involved in 18 of the top 20 deals and AWS Marketplace TC V grew ~45% to ~$750M, while Okta is adding quota-carrying sales capacity.
• Financial position and capital actions are strong: ended Q4 with over $2.5B in cash/short-term investments, reiterated capital allocation discipline, announced a $1B share repurchase program and repurchased ~$79M (875k shares) in January.

Okta Price Performance

Shares of NASDAQ:OKTA opened at $79.65 on Friday. The business’s 50-day moving average is $85.22 and its 200 day moving average is $87.46. Okta has a 1 year low of $68.77 and a 1 year high of $127.57. The firm has a market capitalization of $14.12 billion, a P/E ratio of 60.80, a P/E/G ratio of 2.78 and a beta of 0.79.

Key Okta News

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Q4 beat on both EPS and revenue — Okta reported $0.90 non‑GAAP EPS vs. $0.85 consensus and $761M revenue (up ~11.6% YoY); subscription growth, cRPO expansion and improved margins supported the upside. Okta Announces Fourth Quarter And Fiscal Year 2026 Financial Results
• Positive Sentiment: AI agent momentum — Management said new AI security products (including Auth0 for AI Agents) materially contributed to Q4 bookings and annual contract value surpassed $3B, giving investors a clear growth narrative around “securing AI agents.” Okta Ties AI Security Push To Larger Contracts And Equity Plans
• Positive Sentiment: Analyst upgrades and buy reiterations — Several firms reaffirmed or raised bullish views (e.g., BMO upgraded to Buy, JPMorgan nudged its target higher), which helped lift sentiment into the close. Okta: Strengthening Growth Outlook and Strategic Identity Leadership in an AI-Driven Market
• Neutral Sentiment: Guidance is mixed — Okta issued FY‑27 EPS guidance that was strong on the EPS line but Q1 revenue guidance ($749M–$753M) came in slightly below Street estimates, creating ambiguity on near‑term growth momentum. Okta Announces Fourth Quarter And Fiscal Year 2026 Financial Results
• Neutral Sentiment: Mixed analyst reactions — Although some banks raised or kept Buy ratings, many firms trimmed price targets after the print; consensus targets remain above the stock but dispersion is wide. Okta Posts Q4 Beat; Analysts Cut Price Targets For Early AI Agent ‘Leader’
• Negative Sentiment: Slower growth warning — Reuters and other outlets highlighted Okta’s projection of its slowest revenue growth since the IPO for the coming quarter, reflecting macro uncertainty and potential restraint in enterprise IT spend. Okta forecasts slowest revenue growth since IPO amid economic uncertainty
• Negative Sentiment: Analyst downgrades/low targets from some shops — A few firms (including Scotiabank’s recent note and multiple price‑target trims) set much more conservative numbers, which could limit upside if those views spread. Okta Stock Overview and Analyst Notes

Insiders Place Their Bets

In other news, CFO Brett Tighe sold 10,000 shares of the business’s stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $95.07, for a total transaction of $950,700.00. Following the sale, the chief financial officer owned 134,385 shares in the company, valued at approximately $12,775,981.95. The trade was a 6.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Eric Robert Kelleher sold 2,409 shares of the stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $84.40, for a total transaction of $203,319.60. Following the completion of the transaction, the insider directly owned 11,266 shares of the company’s stock, valued at $950,850.40. The trade was a 17.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 35,927 shares of company stock worth $3,272,658 in the last three months. Insiders own 5.68% of the company’s stock.

Hedge Funds Weigh In On Okta

A number of institutional investors have recently bought and sold shares of OKTA. Sivia Capital Partners LLC acquired a new position in Okta during the second quarter valued at $244,000. BOKF NA acquired a new stake in Okta during the 3rd quarter worth about $266,000. Advisors Asset Management Inc. raised its stake in shares of Okta by 201.3% during the 4th quarter. Advisors Asset Management Inc. now owns 3,269 shares of the company’s stock valued at $283,000 after buying an additional 2,184 shares during the last quarter. Alamea Verwaltungs GmbH lifted its holdings in shares of Okta by 34.9% in the 2nd quarter. Alamea Verwaltungs GmbH now owns 2,866 shares of the company’s stock valued at $287,000 after buying an additional 741 shares during the period. Finally, Certuity LLC boosted its stake in shares of Okta by 51.4% in the third quarter. Certuity LLC now owns 3,203 shares of the company’s stock worth $294,000 after buying an additional 1,087 shares during the last quarter. 86.64% of the stock is owned by hedge funds and other institutional investors.

Okta declared that its Board of Directors has authorized a stock buyback program on Monday, January 5th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to purchase up to 6.8% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several equities analysts recently issued reports on OKTA shares. Morgan Stanley cut their price objective on shares of Okta from $110.00 to $101.00 and set an “overweight” rating on the stock in a report on Thursday. Deutsche Bank Aktiengesellschaft dropped their target price on Okta from $85.00 to $80.00 and set a “hold” rating on the stock in a research report on Thursday. TD Cowen reduced their price target on Okta from $115.00 to $105.00 and set a “hold” rating for the company in a research report on Tuesday, February 24th. Truist Financial decreased their price objective on Okta from $115.00 to $100.00 and set a “buy” rating for the company in a research note on Thursday. Finally, UBS Group dropped their price objective on Okta from $130.00 to $115.00 and set a “buy” rating on the stock in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $102.37.

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.