Okta (NASDAQ:OKTA) Releases Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Okta (NASDAQ:OKTA) issued its quarterly earnings results on Wednesday. The company reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.85 by $0.05, FiscalAI reports. Okta had a return on equity of 3.77% and a net margin of 6.87%.The firm had revenue of $761.00 million during the quarter, compared to analyst estimates of $749.87 million.

Okta Trading Down 1.1%

Shares of OKTA traded down $0.78 during mid-day trading on Wednesday, hitting $71.74. 6,196,897 shares of the company’s stock were exchanged, compared to its average volume of 3,037,714. Okta has a fifty-two week low of $68.77 and a fifty-two week high of $127.57. The business’s 50 day moving average is $85.73 and its two-hundred day moving average is $87.62. The firm has a market capitalization of $12.71 billion, a P/E ratio of 65.82, a P/E/G ratio of 2.87 and a beta of 0.79.

Key Headlines Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta expanded its partnership with the PGA of America to deliver AI‑powered identity security across large fan and pro workflows — a visible, real‑world showcase for Okta’s AI identity use cases that could support longer‑term adoption. Okta PGA Partnership Puts AI Identity Platform To A Broader Test
• Positive Sentiment: BTIG publicly kept a buy stance on OKTA, reinforcing some sell‑side conviction that the company can execute and benefit from AI/security demand despite near‑term noise. BTIG Sticks to Its Buy Rating for Okta (OKTA)
• Positive Sentiment: Analysts and outlets point to Okta’s AI roadmap as a future catalyst — framing identity security as a critical layer for AI deployments, which supports a constructive medium‑term narrative. Okta poised for solid quarter with analysts pointing to AI as future catalyst
• Neutral Sentiment: Q4 earnings are imminent (reporting after the close March 4); analysts have trimmed/updated forecasts ahead of the call — the release itself is the primary near‑term catalyst and could swing the stock either way. Okta Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Neutral Sentiment: Okta will present at an investor conference — useful for management access and investor Q&A but less likely to move the stock absent new guidance. Okta to Present at Upcoming Investor Conference
• Neutral Sentiment: Wells Fargo initiated coverage with an equal‑weight (hold) rating and $76 target — provides liquidity/coverage but is neither a strong buy nor sell signal. Okta (NASDAQ:OKTA) Coverage Initiated by Analysts at Wells Fargo & Company
• Neutral Sentiment: Jefferies trimmed its price target to $105 but kept a buy rating — a mixed signal (lower target but continued conviction). Okta (NASDAQ:OKTA) Given New $105.00 Price Target at Jefferies Financial Group
• Negative Sentiment: Cantor Fitzgerald cut its OKTA target from $115 to $100 (though kept Overweight) — one of several target trims that can pressure the stock and investor sentiment. Cantor Fitzgerald and DA Davidson Cut Okta, Inc. (OKTA) Price Targets, Stay Bullish
• Negative Sentiment: BMO and other brokers have trimmed targets (BMO cut to $83 from $90 and kept Market Perform), adding to near‑term downward pressure. BMO Capital Expects Solid Q1 Results for OKTA, Inc. (OKTA) Despite Sector Caution
• Negative Sentiment: Separate BTIG research note flagged a more pessimistic scenario in its update — another cautionary datapoint for traders ahead of earnings. BTIG Research Issues Pessimistic Forecast for Okta (NASDAQ:OKTA) Stock Price

Okta announced that its Board of Directors has initiated a share repurchase plan on Monday, January 5th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the company to repurchase up to 6.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at Okta

In other Okta news, insider Larissa Schwartz sold 1,899 shares of the company’s stock in a transaction on Wednesday, January 7th. The stock was sold at an average price of $90.74, for a total value of $172,315.26. Following the sale, the insider owned 38,164 shares of the company’s stock, valued at approximately $3,463,001.36. This represents a 4.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Brett Tighe sold 10,000 shares of Okta stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $95.07, for a total value of $950,700.00. Following the transaction, the chief financial officer owned 134,385 shares of the company’s stock, valued at $12,775,981.95. This represents a 6.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 37,245 shares of company stock valued at $3,385,624. Company insiders own 5.68% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Sivia Capital Partners LLC acquired a new position in shares of Okta in the 2nd quarter valued at approximately $244,000. Magnetar Financial LLC bought a new stake in shares of Okta during the third quarter valued at approximately $206,000. Rakuten Securities Inc. increased its holdings in shares of Okta by 194.5% during the second quarter. Rakuten Securities Inc. now owns 1,808 shares of the company’s stock valued at $181,000 after purchasing an additional 1,194 shares during the period. EverSource Wealth Advisors LLC lifted 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 worth $162,000 after acquiring an additional 893 shares during the period. Finally, Centaurus Financial Inc. boosted its stake in Okta by 29.7% during the 3rd quarter. Centaurus Financial Inc. now owns 1,709 shares of the company’s stock valued at $157,000 after purchasing an additional 391 shares in the last quarter. Institutional investors and hedge funds own 86.64% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on OKTA shares. Mizuho dropped their price target on shares of Okta from $110.00 to $100.00 and set an “outperform” rating on the stock in a research note on Tuesday, February 17th. Piper Sandler lifted their price objective on shares of Okta from $95.00 to $100.00 and gave the stock a “neutral” rating in a research note on Monday, January 5th. Needham & Company LLC reaffirmed a “buy” rating and set a $110.00 target price on shares of Okta in a research report on Friday, December 12th. DA Davidson set a $110.00 price objective on Okta in a research report on Thursday, February 26th. Finally, Zacks Research upgraded Okta from a “hold” rating to a “strong-buy” rating in a report on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Okta currently has an average rating of “Moderate Buy” and an average price target of $107.50.

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.