Okta (NASDAQ:OKTA) Releases FY 2027 Earnings Guidance

Key Points

• Okta raised its FY 2027 guidance, projecting EPS of 3.79 to 3.87 versus analysts’ 3.36 estimate. Revenue guidance was set at about $3.2 billion, in line with expectations.
• The company also updated Q2 2027 EPS guidance to 0.95 to 0.97. This came after a recent quarter in which Okta beat both earnings and revenue estimates.
• Shares rose after the guidance update, and analyst sentiment remains constructive, with several firms lifting price targets and the stock carrying a Moderate Buy consensus rating.

Okta (NASDAQ:OKTA - Get Free Report) updated its FY 2027 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 3.790-3.870 for the period, compared to the consensus estimate of 3.360. 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 Q2 2027 guidance to 0.950-0.970 EPS.

Okta Price Performance

Okta stock traded up $5.22 during mid-day trading on Thursday, hitting $94.72. The company's stock had a trading volume of 8,726,015 shares, compared to its average volume of 3,435,628. The business has a 50 day moving average price of $78.68 and a 200-day moving average price of $82.62. Okta has a 12 month low of $62.66 and a 12 month high of $107.84. The stock has a market cap of $16.76 billion, a price-to-earnings ratio of 72.31, a price-to-earnings-growth ratio of 3.65 and a beta of 0.59.

Okta (NASDAQ:OKTA - Get Free Report) last announced its quarterly earnings data on Wednesday, March 4th. The company reported $0.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.85 by $0.05. The firm had revenue of $761.00 million for the quarter, compared to analysts' expectations of $749.87 million. Okta had a return on equity of 4.18% and a net margin of 8.05%.The company's revenue for the quarter was up 11.6% compared to the same quarter last year. During the same period last year, the firm earned $0.78 earnings per share. Okta has set its FY 2027 guidance at 3.740-3.820 EPS and its Q1 2027 guidance at 0.840-0.860 EPS. On average, equities research analysts expect that Okta will post 1.61 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research analysts have recently commented on OKTA shares. Weiss Ratings downgraded Okta from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, May 20th. Zacks Research downgraded Okta from a "strong-buy" rating to a "hold" rating in a report on Thursday, March 26th. Barclays lifted their price objective on Okta from $90.00 to $93.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. Scotiabank decreased their price objective on Okta from $85.00 to $80.00 and set a "sector perform" rating on the stock in a report on Thursday, March 5th. Finally, Jefferies Financial Group decreased their price objective on Okta from $125.00 to $105.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $102.44.

Insider Activity

In other news, Director David Schellhase acquired 3,712 shares of the stock in a transaction dated Thursday, April 16th. The stock was purchased at an average cost of $72.04 per share, with a total value of $267,412.48. Following the completion of the purchase, the director owned 3,712 shares in the company, valued at approximately $267,412.48. The trade was a ∞ increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd Mckinnon sold 11,263 shares of the company's stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $81.01, for a total transaction of $912,415.63. Following the transaction, the chief executive officer directly owned 97,083 shares of the company's stock, valued at approximately $7,864,693.83. This trade represents a 10.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 70,884 shares of company stock valued at $5,625,648. 4.61% of the stock is owned by corporate insiders.

Okta News Roundup

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Arete upgraded Okta from Sell to Buy and set a $127 price target, citing expectations for a modest beat-and-raise quarter. Arete Upgrades Okta, Inc. (OKTA) Rating to Buy
• Positive Sentiment: JPMorgan also raised its price target on OKTA to $114 from $103, reinforcing a constructive view from analysts before earnings. JPMorgan Raises Okta Price Target
• Positive Sentiment: Okta reported fiscal Q1 results that topped estimates, and management said demand for identity tools is being boosted by agentic AI use cases, which investors see as a long-term growth driver. Okta tops first-quarter results on agentic AI demand
• Neutral Sentiment: Multiple pre-earnings previews highlighted expectations for stable SaaS growth, AI security demand, rising remaining performance obligations, and partner momentum, helping keep sentiment positive into the report. Okta Gears Up to Report Q1 Earnings: What's in Store for the Stock?
• Neutral Sentiment: The broader cybersecurity group has also been supported by the AI trade, with investors rotating into software and security names that could benefit from rising AI-related spending. Do cybersecurity stocks still have room to run as AI scales up?
• Negative Sentiment: Some traders cited a brief after-hours pullback after earnings, suggesting the market may be weighing the report more cautiously despite the strong headline numbers. Okta Earnings: Okta Stock Rises on Solid Q1 Results and Outlook

Hedge Funds Weigh In On Okta

Several hedge funds and other institutional investors have recently modified their holdings of the company. Sivia Capital Partners LLC bought a new position in Okta in the second quarter worth about $244,000. Centaurus Financial Inc. raised its stake in Okta by 29.7% in the third quarter. Centaurus Financial Inc. now owns 1,709 shares of the company's stock worth $157,000 after buying an additional 391 shares in the last quarter. Larson Financial Group LLC grew its holdings in Okta by 103.3% in the third quarter. Larson Financial Group LLC now owns 1,159 shares of the company's stock worth $106,000 after purchasing an additional 589 shares during the period. Horizon Investments LLC purchased a new stake in Okta in the third quarter worth about $145,000. Finally, Brown Brothers Harriman & Co. grew its holdings in Okta by 73.7% in the third quarter. Brown Brothers Harriman & Co. now owns 1,563 shares of the company's stock worth $143,000 after purchasing an additional 663 shares during the period. 86.64% of the stock is owned by 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.

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