Okta (NASDAQ:OKTA) Updates FY 2027 Earnings Guidance

Okta (NASDAQ:OKTA) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided earnings per share guidance of 3.790-3.870 for the period, compared to the consensus earnings per share estimate of 3.360. The company issued revenue guidance of $3.2 billion-$3.2 billion, compared to the consensus revenue estimate of $3.2 billion. Okta also updated its Q2 2027 guidance to 0.950-0.970 EPS.

Okta Trading Up 5.8%

OKTA traded up $5.22 during midday trading on Thursday, reaching $94.72. The company’s stock had a trading volume of 8,726,015 shares, compared to its average volume of 3,435,628. The stock’s 50-day moving average is $78.68 and its 200-day moving average is $82.62. Okta has a 1 year low of $62.66 and a 1 year high of $107.84. The firm has a market capitalization of $16.76 billion, a price-to-earnings ratio of 72.31, a PEG ratio of 3.65 and a beta of 0.59.

Okta (NASDAQ:OKTA) last released its earnings results on Wednesday, March 4th. The company reported $0.90 EPS for the quarter, topping analysts’ consensus estimates of $0.85 by $0.05. Okta had a return on equity of 4.18% and a net margin of 8.05%.The firm had revenue of $761.00 million for the quarter, compared to analysts’ expectations of $749.87 million. During the same period in the prior year, the firm posted $0.78 earnings per share. The company’s quarterly revenue was up 11.6% on a year-over-year basis. Okta has set its FY 2027 guidance at 3.740-3.820 EPS and its Q1 2027 guidance at 0.840-0.860 EPS. As a group, equities research analysts forecast that Okta will post 1.61 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

OKTA has been the topic of a number of recent research reports. Zacks Research cut Okta from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 26th. Cantor Fitzgerald increased their target price on Okta from $100.00 to $110.00 and gave the stock an “overweight” rating in a research note on Wednesday. Needham & Company LLC cut their price target on shares of Okta from $110.00 to $90.00 and set a “buy” rating on the stock in a report on Thursday, March 5th. Citigroup upgraded shares of Okta from a “negative” rating to a “positive” rating in a report on Wednesday, May 20th. Finally, Morgan Stanley cut their price target on shares of Okta from $110.00 to $101.00 and set an “overweight” rating on the stock in a report on Thursday, March 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $102.44.

Insiders Place Their Bets

In other Okta news, Director David Schellhase bought 3,712 shares of the firm’s stock in a transaction on Thursday, April 16th. The stock was acquired at an average price of $72.04 per share, with a total value of $267,412.48. Following the transaction, the director owned 3,712 shares in the company, valued at $267,412.48. This represents a ? increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 6,377 shares of the business’s stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $79.75, for a total value of $508,565.75. Following the completion of the transaction, the insider directly owned 54,825 shares of the company’s stock, valued at approximately $4,372,293.75. This trade represents a 10.42% 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 70,884 shares of company stock worth $5,625,648 in the last quarter. Insiders own 4.61% of the company’s stock.

Key Headlines Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Arete upgraded Okta from Sell to Buy and set a $127 price target, citing expectations for a modest beat-and-raise quarter. Arete Upgrades Okta, Inc. (OKTA) Rating to Buy
• Positive Sentiment: JPMorgan also raised its price target on OKTA to $114 from $103, reinforcing a constructive view from analysts before earnings. JPMorgan Raises Okta Price Target
• Positive Sentiment: Okta reported fiscal Q1 results that topped estimates, and management said demand for identity tools is being boosted by agentic AI use cases, which investors see as a long-term growth driver. Okta tops first-quarter results on agentic AI demand
• Neutral Sentiment: Multiple pre-earnings previews highlighted expectations for stable SaaS growth, AI security demand, rising remaining performance obligations, and partner momentum, helping keep sentiment positive into the report. Okta Gears Up to Report Q1 Earnings: What’s in Store for the Stock?
• Neutral Sentiment: The broader cybersecurity group has also been supported by the AI trade, with investors rotating into software and security names that could benefit from rising AI-related spending. Do cybersecurity stocks still have room to run as AI scales up?
• Negative Sentiment: Some traders cited a brief after-hours pullback after earnings, suggesting the market may be weighing the report more cautiously despite the strong headline numbers. Okta Earnings: Okta Stock Rises on Solid Q1 Results and Outlook

Institutional Investors Weigh In On Okta

Several institutional investors and hedge funds have recently added to or reduced their stakes in OKTA. First Trust Advisors LP boosted its holdings in Okta by 28.2% in the fourth quarter. First Trust Advisors LP now owns 6,030,090 shares of the company’s stock worth $521,422,000 after purchasing an additional 1,326,051 shares during the last quarter. Alyeska Investment Group L.P. boosted its holdings in Okta by 276.9% in the third quarter. Alyeska Investment Group L.P. now owns 1,403,499 shares of the company’s stock worth $128,701,000 after purchasing an additional 1,031,083 shares during the last quarter. Freestone Grove Partners LP boosted its holdings in Okta by 187.4% in the fourth quarter. Freestone Grove Partners LP now owns 847,024 shares of the company’s stock worth $73,242,000 after purchasing an additional 552,324 shares during the last quarter. Man Group plc boosted its holdings in Okta by 132.1% in the third quarter. Man Group plc now owns 741,924 shares of the company’s stock worth $68,034,000 after purchasing an additional 422,296 shares during the last quarter. Finally, Broad Bay Capital Management LP purchased a new stake in Okta in the fourth quarter worth approximately $19,888,000. Hedge funds and other institutional investors own 86.64% of the company’s stock.

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.