Okta (NASDAQ:OKTA) Issues Q3 2027 Earnings Guidance

Key Points

• Okta raised its Q3 fiscal 2027 guidance to EPS of $0.92–$0.94 and revenue of $813 million–$817 million, both above analyst consensus estimates of $0.83 EPS and $808 million revenue. Full-year EPS guidance remains $3.90–$3.94.
• Shares rose 2.9% to $134.42 following the guidance update, while analysts maintained a “Moderate Buy” consensus rating with an average price target of $140.54.
• The outlook follows a recent quarterly EPS miss, with Okta reporting $0.65 versus the $0.96 consensus estimate; insiders also sold 165,347 shares worth approximately $21.8 million during the latest quarter.

Okta (NASDAQ:OKTA - Get Free Report) updated 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 OKTA stock traded up $3.81 during mid-day trading on Wednesday, reaching $134.42. The stock had a trading volume of 5,926,579 shares, compared to its average volume of 3,455,782. Okta has a one year low of $62.66 and a one year high of $157.00. The firm has a market cap of $23.36 billion, a PE ratio of 97.41, a P/E/G ratio of 4.71 and a beta of 0.77. The firm's 50 day simple moving average is $138.84 and its 200 day simple moving average is $104.13.

Okta (NASDAQ:OKTA - Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The company reported $0.65 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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. Sell-side analysts forecast that Okta will post 1.75 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms recently issued reports on OKTA. Wedbush reissued an "outperform" rating and issued a $60.00 price target on shares of Okta in a research report on Friday, May 29th. Guggenheim upped their price target on Okta from $138.00 to $162.00 and gave the company a "buy" rating in a research report on Thursday, August 20th. Truist Financial lifted their price objective on Okta from $120.00 to $165.00 and gave the company a "buy" rating in a report on Wednesday, August 19th. Oppenheimer boosted their price target on shares of Okta from $125.00 to $170.00 and gave the company an "outperform" rating in a research report on Tuesday, August 11th. Finally, Weiss Ratings raised Okta from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Okta currently has a consensus rating of "Moderate Buy" and an average target price of $140.54.

Insider Buying and Selling at Okta

In other Okta news, CFO Brett Tighe sold 65,000 shares of Okta stock in a transaction on Monday, June 8th. The shares were sold at an average price of $117.25, for a total transaction of $7,621,250.00. Following the completion of the sale, the chief financial officer owned 119,680 shares of the company's stock, valued at approximately $14,032,480. The trade was a 35.20% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Robert Kelleher sold 3,977 shares of the company's 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 sale, the insider owned 19,618 shares of the company's stock, valued at $2,238,413.80. The trade was a 16.86% 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. Insiders sold a total of 165,347 shares of company stock worth $21,827,342 over the last quarter. Company insiders own 4.61% of the company's stock.

More Okta News

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 Investors Weigh In On Okta

Large investors have recently bought and sold shares of the company. First Trust Advisors LP raised its holdings in Okta by 28.2% in 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. Alyeska Investment Group L.P. lifted its holdings in Okta by 276.9% during the third quarter. Alyeska Investment Group L.P. now owns 1,403,499 shares of the company's stock worth $128,701,000 after acquiring an additional 1,031,083 shares in the last quarter. Freestone Grove Partners LP lifted its holdings in Okta by 187.4% during the fourth quarter. Freestone Grove Partners LP now owns 847,024 shares of the company's stock worth $73,242,000 after acquiring an additional 552,324 shares in the last quarter. Man Group plc grew its stake in Okta by 132.1% in the third quarter. Man Group plc now owns 741,924 shares of the company's stock valued at $68,034,000 after acquiring an additional 422,296 shares during the period. Finally, Broad Bay Capital Management LP bought a new stake in shares of Okta in the fourth quarter worth about $19,888,000. Institutional investors own 86.64% of the company's stock.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source