Okta (NASDAQ:OKTA) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Okta (NASDAQ:OKTA) announced its quarterly earnings results on Thursday. The company reported $0.91 EPS for the quarter, topping the consensus estimate of $0.85 by $0.06, FiscalAI reports. Okta had a net margin of 8.05% and a return on equity of 4.18%. The company had revenue of $765.00 million for the quarter, compared to analyst estimates of $751.84 million. During the same quarter in the prior year, the business posted $0.86 EPS. Okta’s quarterly revenue was up 11.2% on a year-over-year basis. Okta updated its FY 2027 guidance to 3.790-3.870 EPS and its Q2 2027 guidance to 0.950-0.970 EPS.

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

• Okta said it had a strong start to FY2027, with Q1 performance driven by large enterprise strength, partner engagement, and newer products, while management highlighted durable momentum across both the Okta and Auth0 platforms.
• Management emphasized its AI agent strategy as a major growth opportunity, arguing that enterprises will need a neutral identity layer to discover, govern, and control autonomous agents across multiple platforms. The company said demand and pipeline for Okta for AI Agents and Auth0 for AI Agents were both very strong, even though the products are still early and not yet a material contributor to revenue.
• Okta noted that its new product portfolio represented about 25% of Q1 bookings, with a stated 40% ACV uplift when new products are included in a deal. Management also said AI-specific deals are already coming in at larger average sizes than the rest of the business.
• The company reported improving go-to-market execution, including higher sales productivity, stronger pipeline build, low AE attrition, and increasing partner-sourced bookings, with multiple million-dollar-plus partner deals in the quarter.
• Okta raised its guidance for FY2027, now expecting 9%-10% revenue growth, 25%-26% non-GAAP operating margin, and 27%-28% free cash flow margin. It also plans to use cash to settle $350 million of convertible notes at maturity and continues repurchasing shares under its $1 billion buyback program.

Okta Price Performance

Shares of Okta stock opened at $94.72 on Friday. Okta has a fifty-two week low of $62.66 and a fifty-two week high of $107.84. The firm has a fifty day moving average price of $79.01 and a two-hundred day moving average price of $82.69. The company has a market cap of $16.76 billion, a PE ratio of 72.31, a price-to-earnings-growth ratio of 3.49 and a beta of 0.59.

Insider Transactions at Okta

In other Okta news, insider Eric Robert Kelleher sold 2,409 shares of the stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $80.00, for a total value of $192,720.00. Following the completion of the sale, the insider directly owned 15,470 shares of the company’s stock, valued at $1,237,600. This represents a 13.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 1,054 shares of the stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $80.00, for a total transaction of $84,320.00. Following the completion of the sale, the insider directly owned 48,448 shares of the company’s stock, valued at approximately $3,875,840. This trade represents a 2.13% decrease in their ownership of the stock. 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. Over the last quarter, insiders sold 70,884 shares of company stock worth $5,625,648. 4.61% of the stock is currently owned by insiders.

Institutional Trading of Okta

Several institutional investors have recently made changes to their positions in the business. First Trust Advisors LP boosted its position in shares of Okta by 28.2% during the 4th quarter. First Trust Advisors LP now owns 6,030,090 shares of the company’s stock valued at $521,422,000 after acquiring an additional 1,326,051 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Okta by 2.9% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,495,389 shares of the company’s stock valued at $215,776,000 after acquiring an additional 69,653 shares in the last quarter. Ameriprise Financial Inc. boosted its position in shares of Okta by 9.3% during the 3rd quarter. Ameriprise Financial Inc. now owns 2,226,676 shares of the company’s stock valued at $204,162,000 after acquiring an additional 189,036 shares in the last quarter. Primecap Management Co. CA boosted its position in shares of Okta by 3.3% during the 4th quarter. Primecap Management Co. CA now owns 1,641,028 shares of the company’s stock valued at $141,900,000 after acquiring an additional 51,990 shares in the last quarter. Finally, Northern Trust Corp boosted its position in shares of Okta by 3.8% during the 3rd quarter. Northern Trust Corp now owns 1,631,097 shares of the company’s stock valued at $149,572,000 after acquiring an additional 60,398 shares in the last quarter. 86.64% of the stock is currently owned by institutional investors and hedge funds.

More Okta News

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta reported fiscal Q1 2027 results that beat estimates on both earnings and revenue, with EPS of $0.91 versus $0.85 expected and revenue of $765 million versus $751.8 million expected. The company also highlighted stronger operating performance and 11.2% year-over-year revenue growth. Okta earnings report
• Positive Sentiment: Management issued guidance above consensus, including Q2 EPS guidance of $0.95 to $0.97 and FY 2027 EPS guidance of $3.79 to $3.87, signaling confidence in continued execution and margin improvement. Okta press release
• Positive Sentiment: Analysts turned more constructive after the report, with JPMorgan raising its price target to $114, Citi lifting its target to $105, Robert W. Baird raising its target to $140, and William Blair reiterating a Buy rating on improving enterprise momentum and AI-driven growth potential. Citi target lift article
• Positive Sentiment: Investors are also focused on Okta’s AI-agent identity management opportunity, which management said is creating additional demand for its security tools and could expand the company’s long-term growth runway. CNBC earnings article
• Neutral Sentiment: Some commentary pointed to valuation as a reason for caution, with Citi keeping a Hold rating despite better execution, suggesting the stock may need continued fundamental progress to justify further upside. Citi hold/target article

Analyst Upgrades and Downgrades

Several research analysts have recently commented on OKTA shares. Scotiabank dropped their price target on shares of Okta from $85.00 to $80.00 and set a “sector perform” rating on the stock in a research note on Thursday, March 5th. Berenberg Bank decreased their price objective on shares of Okta from $145.00 to $120.00 and set a “buy” rating for the company in a report on Thursday, March 5th. Wall Street Zen downgraded shares of Okta from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Weiss Ratings downgraded shares of Okta from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, May 20th. Finally, BTIG Research lifted their target price on shares of Okta from $90.00 to $105.00 and gave the stock a “buy” rating in a report on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Okta currently has an average rating of “Moderate Buy” and an average target price of $102.44.

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.