Okta (NASDAQ:OKTA) Updates Q3 2027 Earnings Guidance

Okta (NASDAQ:OKTA) issued an update on its third quarter 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 0.920-0.940 for the period, compared to the consensus earnings per share estimate of 0.830. The company issued revenue guidance of $813.0 million-$817.0 million, compared to the consensus revenue estimate of $808.0 million. Okta also updated its FY 2027 guidance to 3.900-3.940 EPS.

Analyst Ratings Changes

A number of brokerages have weighed in on OKTA. Barclays lifted their price target on shares of Okta from $120.00 to $170.00 and gave the company an “overweight” rating in a research report on Monday, August 17th. Raymond James Financial cut shares of Okta from a “buy” rating to a “strong sell” rating in a research report on Monday, July 6th. Jefferies Financial Group lifted their target price on shares of Okta from $140.00 to $170.00 and gave the company a “buy” rating in a report on Tuesday, August 18th. HC Wainwright began coverage on Okta in a research report on Monday, July 6th. They issued a “buy” rating on the stock. Finally, Morgan Stanley upped their price target on Okta from $115.00 to $180.00 and gave the stock an “overweight” rating in a research note on Thursday, August 20th. One research analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Okta presently has an average rating of “Moderate Buy” and an average price target of $140.54.

Okta Stock Up 2.9%

NASDAQ:OKTA traded up $3.81 on Wednesday, reaching $134.42. 6,466,864 shares of the company’s stock were exchanged, compared to its average volume of 3,478,360. The firm has a market capitalization of $23.36 billion, a price-to-earnings ratio of 97.41, a price-to-earnings-growth ratio of 4.71 and a beta of 0.77. Okta has a 52-week low of $62.66 and a 52-week high of $157.00. The business has a fifty day moving average of $138.84 and a 200-day moving average of $104.13.

Okta (NASDAQ:OKTA) last posted its quarterly earnings data on Thursday, May 28th. The company reported $0.91 EPS for the quarter, beating the consensus estimate of $0.85 by $0.06. The business had revenue of $765.00 million during the quarter, compared to analyst estimates of $751.84 million. Okta had a net margin of 8.24% and a return on equity of 4.15%. The business’s revenue for the quarter was up 11.2% compared to the same quarter last year. During the same quarter last year, the firm posted $0.86 earnings per share. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. As a group, equities analysts anticipate that Okta will post 1.75 earnings per share for the current year.

Insider Buying and Selling at Okta

In other news, CFO Brett Tighe sold 65,000 shares of the business’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $117.25, for a total transaction of $7,621,250.00. Following the completion of the transaction, the chief financial officer directly owned 119,680 shares of the company’s stock, valued at approximately $14,032,480. The trade was a 35.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 24,971 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $134.13, for a total transaction of $3,349,360.23. Following the sale, the insider owned 23,477 shares in the company, valued at $3,148,970.01. The trade was a 51.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 165,347 shares of company stock worth $21,827,342. 4.61% of the stock is currently owned by insiders.

Trending Headlines about Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Palo Alto Networks CEO Nikesh Arora reportedly held acquisition discussions with Okta CEO Todd McKinnon in late 2024 and early 2025. Although the talks stalled over valuation, the report highlights Okta’s strategic appeal and product fit within the broader cybersecurity market. Palo Alto Networks CEO held acquisition talks with both Okta and Datadog
• Positive Sentiment: Okta was included among five stocks identified as having bullish setups heading into the fourth quarter, supported by analyst price-target increases, earnings expectations and potential AI-related growth catalysts. 5 Stocks to Buy in September Before Wall Street Catches On
• Neutral Sentiment: Pre-earnings coverage focused on expectations for Okta’s fiscal second quarter, including revenue, guidance, customer trends and profitability. The reports provided context ahead of the release but did not add new operating data. Okta Q2 Earnings Report Preview
• Neutral Sentiment: Reported August short-interest data showed zero shares and a zero-day days-to-cover ratio, suggesting the figures were incomplete or unreliable rather than indicating a meaningful change in bearish positioning.
• Neutral Sentiment: An Okta and Google Workspace webinar promoted the company’s workplace-technology integrations, offering modest evidence of ecosystem engagement but no immediate financial impact. Delivering Seamless Experiences for Modern Work
• Negative Sentiment: Okta reported quarterly EPS of $0.65, missing the $0.96 consensus estimate by $0.31. The 4.15% return on equity and 8.24% net margin also underscore profitability concerns, making the earnings miss the main downside catalyst for investors.

Institutional Investors Weigh In On Okta

A number of large investors have recently modified their holdings of the company. Utah Retirement Systems boosted its holdings in Okta by 0.6% during the fourth quarter. Utah Retirement Systems now owns 28,605 shares of the company’s stock worth $2,473,000 after buying an additional 163 shares during the last quarter. Kestra Advisory Services LLC increased 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 valued at $837,000 after acquiring an additional 166 shares during the last quarter. O Shaughnessy Asset Management LLC raised its position in shares of Okta by 3.1% in the 4th 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 during the period. Diversify Advisory Services LLC raised its position in shares of Okta by 0.7% in the 2nd quarter. Diversify Advisory Services LLC now owns 27,086 shares of the company’s stock valued at $2,708,000 after acquiring an additional 190 shares during the period. Finally, CreativeOne Wealth LLC boosted its stake in Okta by 10.3% during the 3rd 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 last quarter. 86.64% of the stock is owned by hedge funds and other institutional investors.

About Okta

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.