Okta (NASDAQ:OKTA) Issues FY 2027 Earnings Guidance

Key Points

• Okta raised or reaffirmed FY 2027 EPS guidance at $3.90–$3.94, above the $3.43 analyst consensus, while revenue guidance of approximately $3.2 billion matched expectations. Q3 EPS guidance was set at $0.92–$0.94.
• Okta’s latest quarterly results were weaker than expected, with EPS of $0.65 versus the $0.96 consensus. The company reported an 8.24% net margin and 4.15% return on equity.
• Shares traded near $134.42, and analysts maintained an overall “Moderate Buy” rating with an average price target of $140.54; however, insiders sold roughly $21.8 million of stock over the past 90 days.

Okta (NASDAQ:OKTA - Get Free Report) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 3.900-3.940 for the period, compared to the consensus EPS estimate of 3.430. 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 Q3 2027 guidance to 0.920-0.940 EPS.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on OKTA. Sanford C. Bernstein downgraded shares of Okta from an "outperform" rating to a "hold" rating in a research report on Monday, July 6th. Evercore started coverage on shares of Okta in a research note on Monday, July 6th. They set an "outperform" rating on the stock. HSBC lowered shares of Okta from a "buy" rating to a "hold" rating in a report on Monday, July 6th. The Goldman Sachs Group began coverage on Okta in a report on Monday, July 6th. They set a "buy" rating on the stock. Finally, Needham & Company LLC boosted their price target on Okta from $120.00 to $140.00 and gave the company a "buy" rating in a report on Wednesday, June 24th. One analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Okta currently has an average rating of "Moderate Buy" and an average target price of $140.54.

Okta Stock Performance

Shares of NASDAQ:OKTA traded up $3.81 during trading hours on Wednesday, hitting $134.42. The stock had a trading volume of 5,926,579 shares, compared to its average volume of 3,455,782. The stock's fifty day simple moving average is $138.84 and its 200 day simple moving average is $104.13. Okta has a 1-year low of $62.66 and a 1-year high of $157.00. The firm has a market capitalization of $23.36 billion, a price-to-earnings ratio of 97.41, a PEG ratio of 4.71 and a beta of 0.77.

Okta (NASDAQ:OKTA - Get Free Report) last posted its earnings results on Wednesday, August 26th. The company reported $0.65 EPS for the quarter, missing the consensus estimate of $0.96 by ($0.31). Okta had a net margin of 8.24% and a return on equity of 4.15%. 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, research analysts anticipate that Okta will post 1.75 EPS for the current year.

Insider Activity at Okta

In other Okta news, insider Eric Robert Kelleher sold 3,977 shares of the business's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $114.10, for a total transaction of $453,775.70. Following the sale, the insider directly owned 19,618 shares in the company, valued at approximately $2,238,413.80. The trade was a 16.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd Mckinnon sold 68,936 shares of the stock in a transaction that occurred on Wednesday, July 8th. The shares were sold at an average price of $146.62, for a total transaction of $10,107,396.32. Following the completion of the transaction, the chief executive officer owned 38,484 shares of the company's stock, valued at $5,642,524.08. This trade represents a 64.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 165,347 shares of company stock valued at $21,827,342 in the last ninety days. Company insiders own 4.61% of the company's stock.

Okta News Summary

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Palo Alto Networks CEO Nikesh Arora reportedly held acquisition discussions with Okta CEO Todd McKinnon in late 2024 and early 2025. Although the talks stalled over valuation, the report highlights Okta’s strategic appeal and product fit within the broader cybersecurity market. Palo Alto Networks CEO held acquisition talks with both Okta and Datadog
• Positive Sentiment: Okta was included among five stocks identified as having bullish setups heading into the fourth quarter, supported by analyst price-target increases, earnings expectations and potential AI-related growth catalysts. 5 Stocks to Buy in September Before Wall Street Catches On
• Neutral Sentiment: Pre-earnings coverage focused on expectations for Okta’s fiscal second quarter, including revenue, guidance, customer trends and profitability. The reports provided context ahead of the release but did not add new operating data. Okta Q2 Earnings Report Preview
• Neutral Sentiment: Reported August short-interest data showed zero shares and a zero-day days-to-cover ratio, suggesting the figures were incomplete or unreliable rather than indicating a meaningful change in bearish positioning.
• Neutral Sentiment: An Okta and Google Workspace webinar promoted the company’s workplace-technology integrations, offering modest evidence of ecosystem engagement but no immediate financial impact. Delivering Seamless Experiences for Modern Work
• Negative Sentiment: Okta reported quarterly EPS of $0.65, missing the $0.96 consensus estimate by $0.31. The 4.15% return on equity and 8.24% net margin also underscore profitability concerns, making the earnings miss the main downside catalyst for investors.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. EFG International AG bought a new stake in Okta in the fourth quarter worth about $61,000. CIBC Private Wealth Group LLC boosted its holdings in Okta by 378.3% during the third quarter. CIBC Private Wealth Group LLC now owns 727 shares of the company's stock worth $67,000 after buying an additional 575 shares in the last quarter. Los Angeles Capital Management LLC bought a new stake in Okta during the fourth quarter worth approximately $71,000. Johnson Financial Group Inc. acquired a new position in Okta in the third quarter worth approximately $83,000. Finally, State of Wyoming bought a new position in shares of Okta in the second quarter valued at $84,000. Institutional investors own 86.64% of the company's stock.

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.

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