Okta (NASDAQ:OKTA) Posts Earnings Results, Beats Estimates By $0.09 EPS

Posted by Brenda Bartman on Aug 27th, 2026

Okta (NASDAQ:OKTA – Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $1.05 EPS for the quarter, topping the consensus estimate of $0.96 by $0.09, FiscalAI reports. The company had revenue of $805.00 million during the quarter, compared to analyst estimates of $793.00 million. Okta had a net margin of 8.24% and a return on equity of 4.15%. The firm’s revenue was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.91 EPS. Okta updated its FY 2027 guidance to 3.900-3.940 EPS and its Q3 2027 guidance to 0.920-0.940 EPS.

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

Core business momentum strengthened, with acceleration in workforce and customer identity ACV, record Q2 bookings, strong pipeline conversion, and more than 600 customers generating over $1 million in ACV.
New products represented approximately 30% of bookings, with Identity Governance the largest contributor and deals including new products producing roughly 40% higher ACV on average.
Okta reported growing demand for its AI-agent security products, including dozens of Q2 deals and several million-dollar-plus wins, but management emphasized that the business remains very early and AI revenue will be immaterial to FY2027.
Management raised full-year FY2027 expectations to 10%–11% revenue growth, 26% non-GAAP operating margin, and 28%–29% free-cash-flow margin, while Q3 guidance calls for 10% revenue growth and 11%–12% current RPO growth.
Okta completed its $350 million convertible-note cash settlement and repurchased approximately 1.5 million shares for $125 million; however, shifting more professional-services work to partners is expected to reduce FY2027 revenue growth by about one percentage point.

Okta Price Performance

Shares of OKTA stock opened at $134.42 on Thursday. The company has a market capitalization of $23.36 billion, a PE ratio of 97.41, a price-to-earnings-growth ratio of 4.70 and a beta of 0.77. The firm’s 50-day moving average is $139.27 and its two-hundred day moving average is $104.50. Okta has a 12 month low of $62.66 and a 12 month high of $157.00.

Analyst Ratings Changes

OKTA has been the topic of a number of research reports. Capital One Financial set a $171.00 price target on shares of Okta and gave the company an “overweight” rating in a research note on Thursday, July 16th. HSBC cut Okta from a “buy” rating to a “hold” rating in a report on Monday, July 6th. Needham & Company LLC lifted their price target on Okta from $120.00 to $140.00 and gave the stock a “buy” rating in a research note on Wednesday, June 24th. Evercore assumed coverage on Okta in a report on Monday, July 6th. They issued an “outperform” rating on the stock. Finally, JPMorgan Chase & Co. upped their target price on shares of Okta from $120.00 to $165.00 and gave the stock an “overweight” rating in a report on Friday, August 21st. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Okta has an average rating of “Moderate Buy” and a consensus price target of $143.29.

Get Our Latest Report on OKTA

Insider Activity

In related news, insider Eric Robert Kelleher sold 3,977 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $114.10, for a total value of $453,775.70. Following the transaction, the insider directly owned 19,618 shares in the company, valued at approximately $2,238,413.80. This represents a 16.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brett Tighe sold 65,000 shares of the stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $117.25, for a total value of $7,621,250.00. Following the completion of the transaction, the chief financial officer owned 119,680 shares of the company’s stock, valued at $14,032,480. The trade was a 35.20% 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. In the last 90 days, insiders sold 165,347 shares of company stock worth $21,827,342. Corporate insiders own 4.61% of the company’s stock.

Institutional Investors Weigh In On Okta

A number of institutional investors and hedge funds have recently added to or reduced their stakes in OKTA. Integrated Wealth Concepts LLC purchased a new stake in Okta in the 1st quarter valued at about $225,000. NewEdge Advisors LLC boosted its stake in Okta by 853.4% during the first quarter. NewEdge Advisors LLC now owns 5,530 shares of the company’s stock worth $582,000 after buying an additional 4,950 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of Okta during the second quarter valued at about $244,000. Invesco Ltd. increased its position in shares of Okta by 34.1% during the second quarter. Invesco Ltd. now owns 430,844 shares of the company’s stock valued at $43,071,000 after acquiring an additional 109,614 shares during the last quarter. Finally, EverSource Wealth Advisors LLC raised its stake in shares of Okta by 122.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,621 shares of the company’s stock valued at $162,000 after acquiring an additional 893 shares during the period. Hedge funds and other institutional investors own 86.64% of the company’s stock.

More Okta News

Here are the key news stories impacting Okta this week:

Positive Sentiment: Quarterly results exceeded expectations. Okta reported adjusted earnings of $1.05 per share versus the $0.96 analyst consensus, while revenue increased 10.6% year over year to $805 million, topping estimates of $793 million. Okta Surpasses Q2 Earnings and Revenue Estimates
Positive Sentiment: Raised guidance provides an additional catalyst. Okta now expects fiscal 2027 revenue of approximately $3.216 billion to $3.226 billion, representing 10% to 11% growth and above its prior forecast of $3.19 billion to $3.21 billion. Third-quarter revenue guidance of $813 million to $817 million and EPS guidance of $0.92 to $0.94 also exceeded Wall Street expectations. Okta Lifts Full-Year Outlook as AI Agents Spur Demand
Positive Sentiment: AI-related demand is strengthening Okta’s growth narrative. Management highlighted increasing adoption of AI agents, new products contributing roughly 30% of bookings, record non-fourth-quarter bookings and partner-led sales. Investors view identity controls as increasingly important for securing AI-driven workflows. Okta and CrowdStrike Stocks Jump After Earnings
Neutral Sentiment: Analyst support improved, but valuation remains a consideration. Robert W. Baird reiterated a Buy rating and set a $185 price target. However, Okta’s elevated valuation—including a P/E ratio near 97—may limit further gains if growth or guidance begins to slow. Okta Buy Rating and Raised Price Target

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.