Okta (NASDAQ:OKTA) Releases Q3 2027 Earnings Guidance

Okta (NASDAQ:OKTA) issued an update on its third quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.920-0.940 for the period, compared to the consensus earnings per share estimate of 0.830. The company issued revenue guidance of $813.0 million-$817.0 million, compared to the consensus revenue estimate of $808.0 million. Okta also updated its FY 2027 guidance to 3.900-3.940 EPS.

Okta Stock Up 2.9%

Shares of NASDAQ OKTA opened at $134.42 on Thursday. The firm has a 50-day simple moving average of $139.27 and a 200-day simple moving average of $104.50. The stock has a market capitalization of $23.36 billion, a price-to-earnings ratio of 97.41, a price-to-earnings-growth ratio of 4.70 and a beta of 0.77. Okta has a 52 week low of $62.66 and a 52 week high of $157.00.

Okta (NASDAQ:OKTA) last announced its quarterly earnings data on Wednesday, August 26th. The company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.96 by $0.09. The company had revenue of $805.00 million during the quarter, compared to analysts’ expectations of $793.00 million. Okta had a net margin of 8.24% and a return on equity of 4.15%. Okta’s revenue was up 10.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.91 EPS. 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, equities research analysts expect that Okta will post 1.75 EPS for the current year.

Analysts Set New Price Targets

A number of brokerages recently issued reports on OKTA. KeyCorp reissued an “overweight” rating and issued a $180.00 price objective on shares of Okta in a report on Friday, August 21st. Barclays lifted their price target on shares of Okta from $120.00 to $170.00 and gave the company an “overweight” rating in a research report on Monday, August 17th. Oppenheimer upped their price target on Okta from $125.00 to $170.00 and gave the company an “outperform” rating in a research note on Tuesday, August 11th. Mizuho increased their price target on Okta from $125.00 to $145.00 and gave the stock a “neutral” rating in a report on Wednesday, August 19th. Finally, Stifel Nicolaus set a $180.00 price objective on shares of Okta in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, nine have assigned 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 price target of $148.74.

Insider Buying and Selling

In other Okta news, insider Larissa Schwartz sold 24,971 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $134.13, for a total value of $3,349,360.23. Following the completion of the sale, the insider owned 23,477 shares in the company, valued at approximately $3,148,970.01. The trade was a 51.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Robert Kelleher sold 3,977 shares of Okta stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $114.10, for a total transaction of $453,775.70. Following the completion of the transaction, the insider 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 165,347 shares of company stock worth $21,827,342. 4.61% of the stock is owned by corporate insiders.

Key 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

Institutional Trading of Okta

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Utah Retirement Systems lifted its position in Okta by 0.6% in the fourth quarter. Utah Retirement Systems now owns 28,605 shares of the company’s stock valued at $2,473,000 after purchasing an additional 163 shares during the period. Kestra Advisory Services LLC boosted its stake in shares of Okta by 1.7% during the 4th quarter. Kestra Advisory Services LLC now owns 9,685 shares of the company’s stock worth $837,000 after acquiring an additional 166 shares in the last quarter. O Shaughnessy Asset Management LLC increased its stake in Okta by 3.1% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 5,745 shares of the company’s stock valued at $497,000 after purchasing an additional 173 shares in the last quarter. Diversify Advisory Services LLC raised its holdings in Okta by 0.7% during the second quarter. Diversify Advisory Services LLC now owns 27,086 shares of the company’s stock worth $2,708,000 after purchasing an additional 190 shares during the last quarter. Finally, CreativeOne Wealth LLC boosted its position in Okta by 10.3% during the third quarter. CreativeOne Wealth LLC now owns 2,868 shares of the company’s stock worth $263,000 after purchasing an additional 267 shares in the last quarter. 86.64% of the stock is owned by hedge funds and other institutional investors.

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.