Okta (NASDAQ:OKTA) Releases Q2 2027 Earnings Guidance

Okta (NASDAQ:OKTA) issued an update on its second quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.950-0.970 for the period, compared to the consensus estimate of 0.840. The company issued revenue guidance of $790.0 million-$794.0 million, compared to the consensus revenue estimate of $791.1 million. Okta also updated its FY 2027 guidance to 3.790-3.870 EPS.

Okta Trading Up 5.8%

NASDAQ OKTA traded up $5.22 during trading hours on Thursday, hitting $94.72. The company’s stock had a trading volume of 8,726,015 shares, compared to its average volume of 3,435,628. Okta has a 52 week low of $62.66 and a 52 week high of $107.84. The company has a market capitalization of $16.76 billion, a PE ratio of 72.31, a price-to-earnings-growth ratio of 3.65 and a beta of 0.59. The company’s 50-day simple moving average is $78.68 and its two-hundred day simple moving average is $82.62.

Okta (NASDAQ:OKTA) last announced its quarterly earnings results on Wednesday, March 4th. The company reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.85 by $0.05. Okta had a net margin of 8.05% and a return on equity of 4.18%. The business had revenue of $761.00 million for the quarter, compared to analysts’ expectations of $749.87 million. During the same quarter last year, the firm earned $0.78 EPS. The firm’s revenue for the quarter was up 11.6% compared to the same quarter last year. Okta has set its FY 2027 guidance at 3.740-3.820 EPS and its Q1 2027 guidance at 0.840-0.860 EPS. Research analysts anticipate that Okta will post 1.61 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms have commented on OKTA. Wall Street Zen cut shares of Okta from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Canaccord Genuity Group dropped their target price on shares of Okta from $120.00 to $95.00 and set a “buy” rating on the stock in a research report on Thursday, March 5th. Citigroup raised shares of Okta from a “negative” rating to a “positive” rating in a research report on Wednesday, May 20th. JPMorgan Chase & Co. lifted their target price on shares of Okta from $103.00 to $114.00 and gave the stock an “overweight” rating in a research report on Thursday. Finally, Seaport Research Partners cut shares of Okta to a “neutral” rating in a research report on Thursday, April 16th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $102.44.

Insider Activity at Okta

In other news, CRO Jonathan James Addison sold 23,304 shares of the firm’s stock in a transaction that occurred on Wednesday, March 25th. The shares were sold at an average price of $77.79, for a total transaction of $1,812,818.16. Following the completion of the sale, the executive owned 4,364 shares in the company, valued at $339,475.56. This trade represents a 84.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director David Schellhase purchased 3,712 shares of the firm’s stock in a transaction dated Thursday, April 16th. The shares were bought at an average price 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. The trade was a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 70,884 shares of company stock worth $5,625,648 over the last 90 days. Corporate insiders own 4.61% of the company’s stock.

More Okta News

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.

Institutional Investors Weigh In On Okta

Large investors have recently modified their holdings of the stock. EFG International AG purchased a new stake in shares of Okta during the 4th quarter worth approximately $61,000. CIBC Private Wealth Group LLC increased its stake 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 worth $67,000 after purchasing an additional 575 shares during the last quarter. Los Angeles Capital Management LLC purchased a new stake in shares of Okta during the 4th quarter worth approximately $71,000. Johnson Financial Group Inc. purchased a new stake in shares of Okta during the 3rd quarter worth approximately $83,000. Finally, State of Wyoming purchased a new stake in shares of Okta during the 2nd quarter worth approximately $84,000. 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.