Okta (NASDAQ:OKTA) Releases FY 2027 Earnings Guidance

Okta (NASDAQ:OKTA) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 3.790-3.870 for the period, compared to the consensus estimate of 3.360. 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 Q2 2027 guidance to 0.950-0.970 EPS.

Okta Trading Up 5.8%

OKTA stock opened at $94.72 on Friday. The firm has a 50-day moving average of $79.01 and a two-hundred day moving average of $82.69. The company has a market cap of $16.76 billion, a price-to-earnings ratio of 72.31, a PEG ratio of 3.49 and a beta of 0.59. Okta has a 12 month low of $62.66 and a 12 month high of $107.84.

Okta (NASDAQ:OKTA) last announced its quarterly earnings results on Thursday, May 28th. The company reported $0.91 earnings per share for the quarter, beating the consensus estimate of $0.85 by $0.06. The firm had revenue of $765.00 million for the quarter, compared to analysts’ expectations of $751.84 million. Okta had a net margin of 8.05% and a return on equity of 4.18%. The company’s revenue was up 11.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.86 EPS. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. As a group, equities analysts forecast that Okta will post 1.61 earnings per share for the current year.

Analysts Set New Price Targets

A number of brokerages have commented on OKTA. Morgan Stanley reduced their target price on shares of Okta from $110.00 to $101.00 and set an “overweight” rating on the stock in a research note on Thursday, March 5th. BTIG Research lifted their price target on shares of Okta from $105.00 to $119.00 and gave the company a “buy” rating in a research report on Friday. Berenberg Bank decreased their price objective on Okta from $145.00 to $120.00 and set a “buy” rating on the stock in a report on Thursday, March 5th. TD Cowen decreased their price objective on Okta from $115.00 to $105.00 and set a “hold” rating on the stock in a report on Tuesday, February 24th. Finally, Citigroup reiterated an “outperform” rating on shares of Okta in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $104.85.

Insider Transactions at Okta

In related news, Director Shellye L. Archambeau sold 2,500 shares of the business’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $85.00, for a total value of $212,500.00. Following the sale, the director directly owned 9,192 shares in the company, valued at approximately $781,320. The trade was a 21.38% decrease in their position. The sale was disclosed in a filing 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, Director David Schellhase acquired 3,712 shares of Okta stock in a transaction that occurred on Thursday, April 16th. The stock was bought at an average price of $72.04 per share, for a total transaction of $267,412.48. Following the completion of the acquisition, the director owned 3,712 shares in the company, valued at $267,412.48. This trade represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 70,884 shares of company stock worth $5,625,648 in the last 90 days. Insiders own 4.61% of the company’s stock.

Okta News Summary

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta reported fiscal Q1 2027 results that beat estimates on both earnings and revenue, with EPS of $0.91 versus $0.85 expected and revenue of $765 million versus $751.8 million expected. The company also highlighted stronger operating performance and 11.2% year-over-year revenue growth. Okta earnings report
• Positive Sentiment: Management issued guidance above consensus, including Q2 EPS guidance of $0.95 to $0.97 and FY 2027 EPS guidance of $3.79 to $3.87, signaling confidence in continued execution and margin improvement. Okta press release
• Positive Sentiment: Analysts turned more constructive after the report, with JPMorgan raising its price target to $114, Citi lifting its target to $105, Robert W. Baird raising its target to $140, and William Blair reiterating a Buy rating on improving enterprise momentum and AI-driven growth potential. Citi target lift article
• Positive Sentiment: Investors are also focused on Okta’s AI-agent identity management opportunity, which management said is creating additional demand for its security tools and could expand the company’s long-term growth runway. CNBC earnings article
• Neutral Sentiment: Some commentary pointed to valuation as a reason for caution, with Citi keeping a Hold rating despite better execution, suggesting the stock may need continued fundamental progress to justify further upside. Citi hold/target article

Institutional Trading of Okta

A number of institutional investors and hedge funds have recently bought and sold shares of the business. First Trust Advisors LP increased its stake in Okta by 28.2% during the fourth quarter. First Trust Advisors LP now owns 6,030,090 shares of the company’s stock worth $521,422,000 after purchasing an additional 1,326,051 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Okta by 2.9% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,495,389 shares of the company’s stock worth $215,776,000 after purchasing an additional 69,653 shares during the period. Ameriprise Financial Inc. increased its stake in Okta by 9.3% during the third quarter. Ameriprise Financial Inc. now owns 2,226,676 shares of the company’s stock worth $204,162,000 after purchasing an additional 189,036 shares during the period. Primecap Management Co. CA increased its stake in Okta by 3.3% during the fourth quarter. Primecap Management Co. CA now owns 1,641,028 shares of the company’s stock worth $141,900,000 after purchasing an additional 51,990 shares during the period. Finally, Northern Trust Corp increased its stake in Okta by 3.8% during the third quarter. Northern Trust Corp now owns 1,631,097 shares of the company’s stock worth $149,572,000 after purchasing an additional 60,398 shares during the period. 86.64% of the stock is currently owned by hedge funds and other institutional investors.

Okta Company Profile

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.