Okta (NASDAQ:OKTA) Issues FY 2027 Earnings Guidance

Okta (NASDAQ:OKTA) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided EPS guidance of 3.900-3.940 for the period, compared to the consensus EPS estimate of 3.430. 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 Q3 2027 guidance to 0.920-0.940 EPS.

Wall Street Analyst Weigh In

Several brokerages have issued reports on OKTA. Capital One Financial set a $171.00 price objective on Okta and gave the company an “overweight” rating in a research note on Thursday, July 16th. DA Davidson boosted their target price on shares of Okta from $165.00 to $190.00 and gave the company a “buy” rating in a research note on Thursday. Wells Fargo & Company raised shares of Okta from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $150.00 to $180.00 in a report on Monday, August 17th. Guggenheim set a $188.00 price target on shares of Okta and gave the stock a “buy” rating in a research report on Thursday. Finally, HSBC lowered shares of Okta from a “buy” rating to a “hold” rating in a report on Monday, July 6th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and ten have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Okta presently has a consensus rating of “Moderate Buy” and a consensus price target of $168.92.

Okta Stock Performance

OKTA stock opened at $172.91 on Friday. Okta has a 1 year low of $62.66 and a 1 year high of $174.85. The stock has a market capitalization of $30.05 billion, a price-to-earnings ratio of 104.16, a PEG ratio of 4.83 and a beta of 0.77. The stock’s fifty day moving average is $140.37 and its two-hundred day moving average is $105.10.

Okta (NASDAQ:OKTA) last released its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 EPS for the quarter, topping the consensus estimate of $0.96 by $0.09. Okta had a net margin of 9.63% and a return on equity of 4.50%. The business had revenue of $805.00 million during the quarter, compared to analyst estimates of $793.00 million. During the same quarter in the prior year, the firm earned $0.91 earnings per share. The company’s quarterly revenue was up 10.6% on a year-over-year basis. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. As a group, analysts predict that Okta will post 1.75 EPS for the current fiscal year.

Insider Activity

In other news, CFO Brett Tighe sold 65,000 shares of Okta stock in a transaction that occurred on 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 sale, the chief financial officer 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 transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd Mckinnon sold 68,936 shares of the business’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $146.62, for a total value of $10,107,396.32. Following the transaction, the chief executive officer owned 38,484 shares of the company’s stock, valued at approximately $5,642,524.08. This represents a 64.17% 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. Insiders have sold a total of 165,347 shares of company stock worth $21,827,342 in the last quarter. Company insiders own 4.61% of the company’s stock.

Trending Headlines about Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly earnings beat expectations: Okta reported adjusted earnings of $1.05 per share, ahead of the $0.96 consensus estimate, while revenue rose 10.6% year over year to $805 million, exceeding forecasts of approximately $793 million. Okta pops after topping estimates
• Positive Sentiment: Raised fiscal 2027 guidance: Management now expects full-year revenue of roughly $3.216 billion to $3.226 billion, up from its previous forecast. Third-quarter revenue guidance of $813 million to $817 million and adjusted EPS guidance of $0.92 to $0.94 also exceeded analyst estimates. Okta lifts full-year outlook
• Positive Sentiment: AI is strengthening the cybersecurity opportunity: The growth of AI agents and increasingly sophisticated AI-powered threats is driving enterprise demand for identity controls, access governance and security tools. Okta launched Agent SSO to help customers manage identities and permissions for AI agents, while new products reportedly contributed about 30% of bookings. Okta launches Agent SSO
• Positive Sentiment: Analyst sentiment improved: Several firms raised price targets following the results, including Morgan Stanley and Truist to $200, RBC to $195, and JPMorgan to $190. Wells Fargo also upgraded the stock, citing signs that Okta’s growth strategy is turning a corner. Wells Fargo upgrades Okta
• Neutral Sentiment: Investment consideration: Okta’s improved outlook and AI positioning have increased investor optimism, but the stock is trading near its 52-week high and carries elevated valuation measures, including a P/E ratio above 100. Some analysts, including Citi and Mizuho, maintained neutral ratings with $165 targets, signaling limited near-term upside at recent levels.

Institutional Investors Weigh In On Okta

A number of institutional investors have recently added to or reduced their stakes in OKTA. EFG International AG acquired a new stake in shares of Okta in the fourth quarter valued at $61,000. CIBC Private Wealth Group LLC grew its holdings in Okta by 378.3% during the third quarter. CIBC Private Wealth Group LLC now owns 727 shares of the company’s stock worth $67,000 after acquiring an additional 575 shares during the period. Los Angeles Capital Management LLC bought a new stake in Okta in the fourth quarter worth about $71,000. Johnson Financial Group Inc. bought a new stake in Okta in the third quarter worth about $83,000. Finally, State of Wyoming acquired a new stake in Okta in the 2nd quarter valued at about $84,000. 86.64% of the stock is currently owned by institutional investors and hedge funds.

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.