Scotiabank Weighs in on Okta's FY2027 Earnings (NASDAQ:OKTA)

Key Points

• Scotiabank raised its FY2027 EPS forecast for Okta to $1.91, up from $1.74 and above the $1.77 consensus estimate.
• Okta’s latest quarter exceeded expectations, with $1.05 EPS and $805 million in revenue; revenue increased 10.6% year over year, while management issued FY2027 EPS guidance of $3.90–$3.94.
• Analyst sentiment remains favorable, with Okta carrying a “Moderate Buy” consensus rating and a $172.92 average price target, though its elevated valuation, insider selling and competition from Microsoft and CrowdStrike remain risks.

Okta, Inc. (NASDAQ:OKTA - Free Report) - Equities research analysts at Scotiabank increased their FY2027 earnings estimates for Okta in a research report issued to clients and investors on Friday, August 28th. Scotiabank analyst P. Colville now anticipates that the company will earn $1.91 per share for the year, up from their previous forecast of $1.74. The consensus estimate for Okta's current full-year earnings is $1.77 per share.

Several other equities research analysts have also recently commented on the company. Weiss Ratings raised Okta from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, June 3rd. TD Cowen increased their price objective on Okta from $160.00 to $175.00 and gave the company a "hold" rating in a research report on Thursday, August 27th. Morgan Stanley raised their target price on shares of Okta from $180.00 to $200.00 and gave the stock an "overweight" rating in a report on Thursday, August 27th. Needham & Company LLC raised their target price on Okta from $140.00 to $200.00 and gave the stock a "buy" rating in a research report on Thursday, August 27th. Finally, Royal Bank Of Canada raised their price target on shares of Okta from $166.00 to $195.00 and gave the stock an "outperform" rating in a report on Thursday, August 27th. One investment analyst has rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Okta currently has a consensus rating of "Moderate Buy" and a consensus price target of $172.92.

Okta Trading Up 4.1%

OKTA stock opened at $173.04 on Tuesday. The firm's 50-day moving average is $142.48 and its two-hundred day moving average is $106.25. The company has a market capitalization of $30.08 billion, a price-to-earnings ratio of 104.24, a price-to-earnings-growth ratio of 5.76 and a beta of 0.77. Okta has a 52 week low of $62.66 and a 52 week high of $174.85.

Okta (NASDAQ:OKTA - Get Free Report) last announced its earnings results on Wednesday, August 26th. The company reported $1.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.09. The firm had revenue of $805.00 million during the quarter, compared to analyst estimates of $793.00 million. Okta had a net margin of 9.63% and a return on equity of 4.50%. Okta's revenue was up 10.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $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.

Insider Activity at Okta

In related news, insider Larissa Schwartz sold 2,463 shares of Okta stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $120.00, for a total transaction of $295,560.00. Following the sale, the insider directly owned 25,241 shares of the company's stock, valued at $3,028,920. This trade represents a 8.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brett Tighe sold 65,000 shares of the company's stock in a transaction that occurred on Monday, June 8th. The shares were 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 directly owned 119,680 shares of the company's stock, valued at approximately $14,032,480. This trade represents a 35.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 140,376 shares of company stock valued at $18,477,982. Company insiders own 4.61% of the company's stock.

Institutional Trading of Okta

A number of institutional investors and hedge funds have recently modified their holdings of the company. Integrated Wealth Concepts LLC acquired a new position in shares of Okta in the 1st quarter valued at $225,000. NewEdge Advisors LLC raised its position in Okta by 853.4% in the first quarter. NewEdge Advisors LLC now owns 5,530 shares of the company's stock worth $582,000 after purchasing an additional 4,950 shares in the last quarter. Sivia Capital Partners LLC bought a new position in Okta during the second quarter worth about $244,000. Invesco Ltd. grew its stake in shares of Okta by 34.1% in the 2nd quarter. Invesco Ltd. now owns 430,844 shares of the company's stock valued at $43,071,000 after purchasing an additional 109,614 shares during the period. Finally, EverSource Wealth Advisors LLC raised its holdings 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 buying an additional 893 shares in the last quarter. 86.64% of the stock is currently owned by institutional investors.

Key Stories Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta reported fiscal Q2 revenue of $805 million, up 11% year over year, while non-GAAP EPS of $1.05 exceeded the $0.96 consensus estimate. Subscription backlog also remained strong, with remaining performance obligations increasing 17%, supporting expectations for continued demand. Okta gains as investors continue to digest strong quarterly results and a higher outlook
• Positive Sentiment: Management raised fiscal 2027 guidance to $3.216 billion–$3.226 billion in revenue and $3.90–$3.94 in non-GAAP EPS, reinforcing investor confidence in the company’s earnings trajectory. Why Okta Stock Skyrocketed This Week
• Positive Sentiment: Analyst sentiment has improved following the earnings report. Needham raised its price target to a Street-high $200, while other coverage highlights Okta’s margins, free cash flow, enterprise demand, and potential to secure AI agents and non-human identities. Okta Stock Just Got a New Street-High Price Target
• Positive Sentiment: The acquisition of Permiso Security adds cloud-native identity threat-detection capabilities and strengthens Okta’s positioning in the growing AI identity-security market. OKTA's AI Security Push Gains Momentum Against CRWD and MSFT
• Neutral Sentiment: Institutional positioning was mixed, with 451 investors adding shares and 441 reducing positions in the latest quarter. A broader digital-identity market report points to long-term demand from passkeys, biometrics, and fraud prevention, but does not represent a direct company catalyst. Global Digital Identity and Trust Infrastructure Market 2026
• Negative Sentiment: Valuation and execution risks remain. Okta trades at a premium after its recent rally, while Microsoft and CrowdStrike intensify competition in identity and cybersecurity. Reported insider activity was also heavily weighted toward sales, including transactions by senior executives.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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