Okta (NASDAQ:OKTA) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Posted by Brian Himes on May 28th, 2026

Okta (NASDAQ:OKTA – Get Free Report) released its quarterly earnings data 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 8.05% and a return on equity of 4.18%. The company had revenue of $765.00 million during the quarter, compared to analyst estimates of $751.85 million. During the same quarter in the prior year, the business earned $0.86 earnings per share. The business’s quarterly revenue 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 Trading Up 5.8%

Shares of OKTA stock traded up $5.22 on Thursday, reaching $94.72. The company had a trading volume of 8,726,015 shares, compared to its average volume of 3,435,628. The company has a 50-day moving average of $78.68 and a 200-day moving average of $82.62. Okta has a 12 month low of $62.66 and a 12 month high of $107.84. The stock has a market cap of $16.76 billion, a PE ratio of 72.31, a PEG ratio of 3.65 and a beta of 0.59.

Analysts Set New Price Targets

Several research firms have recently issued reports on OKTA. Wolfe Research started coverage on shares of Okta in a research report on Thursday, April 16th. They issued an “outperform” rating for the company. Raymond James Financial upgraded shares of Okta from a “market perform” rating to an “outperform” rating and set a $85.00 price objective on the stock in a research note on Thursday, April 16th. Jefferies Financial Group dropped their target price on shares of Okta from $125.00 to $105.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. DA Davidson reissued a “buy” rating and set a $110.00 target price on shares of Okta in a report on Thursday, March 5th. Finally, BMO Capital Markets raised shares of Okta from a “market perform” rating to an “outperform” rating and lifted their price target for the company from $83.00 to $97.00 in a research report on Friday, March 6th. One 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. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $102.44.

Read Our Latest Report on OKTA

Insider Buying and Selling at Okta

In other Okta news, Director David Schellhase bought 3,712 shares of the stock in a transaction that occurred on Thursday, April 16th. The stock was acquired at an average cost of $72.04 per share, with a total value of $267,412.48. Following the purchase, the director owned 3,712 shares in the company, valued at $267,412.48. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Jonathan James Addison sold 23,304 shares of the stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $77.79, for a total value of $1,812,818.16. Following the sale, the executive directly owned 4,364 shares of the company’s stock, valued at approximately $339,475.56. The trade was a 84.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 70,884 shares of company stock worth $5,625,648 in the last quarter. Company insiders own 4.61% of the company’s stock.

Institutional Trading of Okta

A number of large investors have recently bought and sold shares of OKTA. EFG International AG bought a new stake in Okta during the 4th quarter worth approximately $61,000. CIBC Private Wealth Group LLC boosted its position in Okta by 378.3% during the 3rd 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 last quarter. Los Angeles Capital Management LLC acquired a new position in Okta during the 4th quarter worth approximately $71,000. Johnson Financial Group Inc. acquired a new position in Okta during the 3rd quarter worth approximately $83,000. Finally, State of Wyoming acquired a new position in Okta during the 2nd quarter worth approximately $84,000. 86.64% of the stock is owned by institutional investors.

Trending Headlines about Okta

Here are the key news stories impacting Okta this week:

Positive Sentiment: Okta beat on both earnings and revenue in Q1, reporting $0.91 EPS versus the $0.85 consensus and $765 million in revenue versus $751.9 million expected. Article Title
Positive Sentiment: The company raised its outlook, guiding Q2 FY2027 EPS to 0.950-0.970 versus 0.840 expected and FY2027 EPS to 3.790-3.870 versus 3.360 expected, signaling confidence in continued profit growth.
Positive Sentiment: Management highlighted growing demand tied to AI-agent identity management, which appears to be strengthening the investment case for Okta’s security platform. Article Title
Positive Sentiment: Sentiment was further supported by analyst upgrades and higher price targets, including JPMorgan raising its target to $114 and Arete moving to a Buy/strong-buy view ahead of results.

Okta Company Profile

(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.