Okta (NASDAQ:OKTA) Announces Quarterly Earnings Results

30 May 2026, 07:38 by Amy Steele · The Cerbat Gem

Okta (NASDAQ:OKTA – Get Free Report) posted its earnings results on Thursday. The company reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.85 by $0.06, FiscalAI reports. Okta had a net margin of 8.24% and a return on equity of 4.16%. The business had revenue of $765.00 million for the quarter, compared to analysts’ expectations of $751.84 million. During the same period in the prior year, the company posted $0.86 EPS. The business’s revenue for the quarter was up 11.2% compared to the same quarter last year. 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 NASDAQ:OKTA opened at $123.27 on Friday. The company’s fifty day moving average price is $79.90 and its 200-day moving average price is $82.97. The firm has a market capitalization of $21.80 billion, a price-to-earnings ratio of 89.33, a PEG ratio of 3.69 and a beta of 0.59. Okta has a one year low of $62.66 and a one year high of $124.79.

Analyst Upgrades and Downgrades

OKTA has been the topic of several recent analyst reports. Wall Street Zen cut shares of Okta from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. UBS Group set a $85.00 target price on shares of Okta in a research note on Thursday, April 16th. Stifel Nicolaus lowered their target price on shares of Okta from $121.00 to $92.00 and set a “buy” rating on the stock in a research note on Thursday, March 5th. Citigroup reiterated an “outperform” rating on shares of Okta in a research note on Friday. Finally, Weiss Ratings cut shares of Okta from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, May 20th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $111.86.

Check Out Our Latest Stock Report on OKTA

Insider Transactions at Okta

In related news, insider Larissa Schwartz sold 6,377 shares of the stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $79.75, for a total transaction of $508,565.75. Following the transaction, the insider 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. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd Mckinnon sold 11,263 shares of the stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $81.01, for a total transaction of $912,415.63. Following the transaction, the chief executive officer directly owned 97,083 shares in the company, valued at approximately $7,864,693.83. This represents a 10.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 70,884 shares of company stock worth $5,625,648. Company insiders own 4.61% of the company’s stock.

Hedge Funds Weigh In On Okta

Several institutional investors and hedge funds have recently made changes to their positions in OKTA. EFG International AG bought a new position in shares of Okta during the 4th quarter valued at $61,000. CIBC Private Wealth Group LLC grew its holdings in shares of Okta by 378.3% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 727 shares of the company’s stock valued at $67,000 after purchasing an additional 575 shares during the last quarter. Los Angeles Capital Management LLC bought a new position in shares of Okta during the 4th quarter valued at $71,000. Johnson Financial Group Inc. bought a new position in shares of Okta during the 3rd quarter valued at $83,000. Finally, State of Wyoming bought a new position in shares of Okta during the 2nd quarter valued at $84,000. Institutional investors own 86.64% of the company’s stock.

Okta News Summary

Here are the key news stories impacting Okta this week:

Positive Sentiment: Okta beat consensus on both revenue and earnings, reporting $765 million in revenue and $0.91 EPS, while also raising full-year and next-quarter guidance above expectations. Article Title
Positive Sentiment: Management highlighted accelerating demand for identity tools tied to AI agents, suggesting a new growth tailwind for Okta’s security platform. Article Title
Positive Sentiment: A broad list of brokerages raised price targets after the report, including JPMorgan, Barclays, Morgan Stanley, BTIG, Needham, BMO, Truist, RBC, and others, reinforcing the bullish post-earnings setup. Article Title
Positive Sentiment: Multiple reports said investors are rethinking the “SaaSpocalypse” narrative, with software stocks rebounding sharply as Okta’s results showed resilient demand and improving execution. Article Title

About Okta

(Get Free Report)

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.