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

Key Points

• Scotiabank analyst P. Colville assigned Okta a Sector Perform rating with an $80 price target and forecasted FY2027 EPS of $1.59, versus a MarketBeat consensus price target of $102.37 and a consensus rating of "Moderate Buy".
• Okta beat Q4 estimates with $0.90 non‑GAAP EPS (consensus $0.85) and $761M revenue (up 11.6% YoY), but its FY‑27 EPS guide of 3.74–3.82 and Q1 EPS guide of 0.84–0.86 came with Q1 revenue guidance ($749–$753M) slightly below Street expectations, producing mixed near‑term sentiment.
• Management authorized a $1.0 billion share repurchase program (up to ~6.8% of shares) even as insiders have recently sold stock and institutional investors hold roughly 86.6% of the float.

Okta, Inc. (NASDAQ:OKTA - Free Report) - Investment analysts at Scotiabank issued their FY2027 earnings estimates for Okta in a research report issued to clients and investors on Thursday, March 5th. Scotiabank analyst P. Colville forecasts that the company will earn $1.59 per share for the year. Scotiabank has a "Sector Perform" rating and a $80.00 price target on the stock. The consensus estimate for Okta's current full-year earnings is $0.42 per share.

Other equities research analysts have also recently issued reports about the company. Deutsche Bank Aktiengesellschaft lowered their target price on Okta from $85.00 to $80.00 and set a "hold" rating on the stock in a research note on Thursday. KeyCorp decreased their price objective on shares of Okta from $115.00 to $100.00 and set an "overweight" rating for the company in a report on Thursday. The Goldman Sachs Group dropped their target price on shares of Okta from $137.00 to $117.00 and set a "buy" rating on the stock in a research note on Wednesday, December 3rd. Mizuho reduced their target price on shares of Okta from $110.00 to $100.00 and set an "outperform" rating for the company in a research report on Tuesday, February 17th. Finally, Stifel Nicolaus decreased their price target on shares of Okta from $121.00 to $92.00 and set a "buy" rating for the company in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $102.37.

Okta Trading Up 11.0%

Shares of Okta stock opened at $79.65 on Friday. The stock has a fifty day simple moving average of $85.22 and a 200 day simple moving average of $87.46. Okta has a 12-month low of $68.77 and a 12-month high of $127.57. The company has a market capitalization of $14.12 billion, a P/E ratio of 60.80, a price-to-earnings-growth ratio of 2.78 and a beta of 0.79.

Okta (NASDAQ:OKTA - Get Free Report) last issued its earnings results on Wednesday, March 4th. The company reported $0.90 earnings per share for the quarter, topping analysts' consensus estimates of $0.85 by $0.05. The company had revenue of $761.00 million for the quarter, compared to analyst estimates of $749.87 million. Okta had a return on equity of 4.22% and a net margin of 8.05%.Okta's revenue for the quarter was up 11.6% on a year-over-year basis. During the same period in the prior 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.

Institutional Trading of Okta

A number of hedge funds and other institutional investors have recently modified their holdings of OKTA. Integrated Wealth Concepts LLC purchased a new stake in shares of Okta during the first quarter valued at approximately $225,000. NewEdge Advisors LLC raised its holdings in Okta by 853.4% in the 1st quarter. NewEdge Advisors LLC now owns 5,530 shares of the company's stock worth $582,000 after acquiring an additional 4,950 shares during the last quarter. Sivia Capital Partners LLC bought a new position in Okta in the 2nd quarter valued at approximately $244,000. Hantz Financial Services Inc. boosted its stake in Okta by 572.5% during the 2nd quarter. Hantz Financial Services Inc. now owns 538 shares of the company's stock valued at $54,000 after purchasing an additional 458 shares during the last quarter. Finally, Assetmark Inc. increased its holdings in shares of Okta by 5,770.0% in the 2nd quarter. Assetmark Inc. now owns 587 shares of the company's stock worth $59,000 after purchasing an additional 577 shares in the last quarter. 86.64% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Okta

In other Okta news, CEO Todd Mckinnon sold 11,286 shares of the business's stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $90.96, for a total value of $1,026,574.56. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Brett Tighe sold 10,000 shares of the stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $95.07, for a total value of $950,700.00. Following the sale, 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 SEC filing for this sale provides additional information. In the last quarter, insiders have sold 35,927 shares of company stock valued at $3,272,658. Insiders own 5.68% of the company's stock.

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

More Okta News

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Q4 beat on both EPS and revenue — Okta reported $0.90 non‑GAAP EPS vs. $0.85 consensus and $761M revenue (up ~11.6% YoY); subscription growth, cRPO expansion and improved margins supported the upside. Okta Announces Fourth Quarter And Fiscal Year 2026 Financial Results
• Positive Sentiment: AI agent momentum — Management said new AI security products (including Auth0 for AI Agents) materially contributed to Q4 bookings and annual contract value surpassed $3B, giving investors a clear growth narrative around "securing AI agents." Okta Ties AI Security Push To Larger Contracts And Equity Plans
• Positive Sentiment: Analyst upgrades and buy reiterations — Several firms reaffirmed or raised bullish views (e.g., BMO upgraded to Buy, JPMorgan nudged its target higher), which helped lift sentiment into the close. Okta: Strengthening Growth Outlook and Strategic Identity Leadership in an AI-Driven Market
• Neutral Sentiment: Guidance is mixed — Okta issued FY‑27 EPS guidance that was strong on the EPS line but Q1 revenue guidance ($749M–$753M) came in slightly below Street estimates, creating ambiguity on near‑term growth momentum. Okta Announces Fourth Quarter And Fiscal Year 2026 Financial Results
• Neutral Sentiment: Mixed analyst reactions — Although some banks raised or kept Buy ratings, many firms trimmed price targets after the print; consensus targets remain above the stock but dispersion is wide. Okta Posts Q4 Beat; Analysts Cut Price Targets For Early AI Agent 'Leader'
• Negative Sentiment: Slower growth warning — Reuters and other outlets highlighted Okta’s projection of its slowest revenue growth since the IPO for the coming quarter, reflecting macro uncertainty and potential restraint in enterprise IT spend. Okta forecasts slowest revenue growth since IPO amid economic uncertainty
• Negative Sentiment: Analyst downgrades/low targets from some shops — A few firms (including Scotiabank’s recent note and multiple price‑target trims) set much more conservative numbers, which could limit upside if those views spread. Okta Stock Overview and Analyst Notes

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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