Scotiabank Predicts Okta's FY2027 Earnings (NASDAQ:OKTA)

Key Points

• Scotiabank raised its FY2027 EPS estimate for Okta to $1.65 from $1.60 and kept a Sector Perform rating with a $105 price target, slightly above the broader consensus of $1.61 per share.
• Okta beat quarterly expectations, reporting $0.91 EPS on $765 million in revenue, both ahead of estimates, while revenue rose 11.2% year over year and the company lifted its FY2027 and Q2 FY2027 guidance.
• Analyst sentiment remains largely positive after the results, with multiple firms raising price targets and Okta trading near its 52-week high as investors responded to stronger execution and potential AI-driven demand for identity tools.

Okta, Inc. (NASDAQ:OKTA - Free Report) - Investment analysts at Scotiabank increased their FY2027 earnings per share estimates for Okta in a research report issued to clients and investors on Friday, May 29th. Scotiabank analyst P. Colville now forecasts that the company will earn $1.65 per share for the year, up from their prior forecast of $1.60. Scotiabank has a "Sector Perform" rating and a $105.00 price objective on the stock. The consensus estimate for Okta's current full-year earnings is $1.61 per share.

OKTA has been the topic of several other reports. Wolfe Research initiated coverage on Okta in a report on Thursday, April 16th. They set an "outperform" rating on the stock. Jefferies Financial Group raised their price objective on Okta from $105.00 to $120.00 and gave the stock a "buy" rating in a report on Friday. Morgan Stanley raised their price objective on Okta from $101.00 to $115.00 and gave the stock an "overweight" rating in a report on Friday. KeyCorp raised their price objective on Okta from $95.00 to $103.00 and gave the stock an "overweight" rating in a report on Monday, May 18th. Finally, HSBC upgraded Okta to a "buy" rating in a report on Thursday, April 16th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $111.86.

Okta Stock Performance

Shares of NASDAQ OKTA opened at $123.27 on Monday. The business's 50 day moving average price is $79.90 and its 200-day moving average price is $82.95. Okta has a fifty-two week low of $62.66 and a fifty-two week high of $124.79. The company has a market cap of $21.81 billion, a price-to-earnings ratio of 89.33, a PEG ratio of 4.78 and a beta of 0.80.

Okta (NASDAQ:OKTA - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The company reported $0.91 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.85 by $0.06. Okta had a return on equity of 4.15% and a net margin of 8.24%.The business had revenue of $765.00 million for the quarter, compared to the consensus estimate of $751.84 million. During the same period in the prior year, the business posted $0.86 earnings per share. The company's quarterly revenue was up 11.2% compared to the same quarter last year. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS.

Insider Buying and Selling at Okta

In other Okta news, insider Larissa Schwartz sold 1,054 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $80.00, for a total transaction of $84,320.00. Following the sale, the insider owned 48,448 shares of the company's stock, valued at approximately $3,875,840. This trade represents a 2.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director David Schellhase bought 3,712 shares of the company's stock in a transaction on Thursday, April 16th. The shares were bought at an average cost of $72.04 per share, for a total transaction of $267,412.48. Following the transaction, the director directly owned 3,712 shares in the company, valued at approximately $267,412.48. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 70,884 shares of company stock worth $5,625,648. 4.61% of the stock is currently owned by company insiders.

Institutional Trading of Okta

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Elevation Wealth Partners LLC boosted its position in Okta by 825.0% during the 4th quarter. Elevation Wealth Partners LLC now owns 296 shares of the company's stock valued at $26,000 after acquiring an additional 264 shares in the last quarter. SHP Wealth Management bought a new stake in Okta during the 4th quarter valued at $27,000. Torren Management LLC bought a new stake in Okta during the 4th quarter valued at $32,000. Aster Capital Management DIFC Ltd bought a new stake in Okta during the 3rd quarter valued at $34,000. Finally, Westside Investment Management Inc. boosted its position in Okta by 86.9% during the 3rd quarter. Westside Investment Management Inc. now owns 415 shares of the company's stock valued at $38,000 after acquiring an additional 193 shares in the last quarter. Institutional investors own 86.64% of the company's stock.

Key Okta News

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta beat consensus on both revenue and earnings, reporting $765 million in revenue and $0.91 EPS, while also raising full-year and next-quarter guidance above expectations. Article Title
• Positive Sentiment: Management highlighted accelerating demand for identity tools tied to AI agents, suggesting a new growth tailwind for Okta’s security platform. Article Title
• Positive Sentiment: A broad list of brokerages raised price targets after the report, including JPMorgan, Barclays, Morgan Stanley, BTIG, Needham, BMO, Truist, RBC, and others, reinforcing the bullish post-earnings setup. Article Title
• Positive Sentiment: Multiple reports said investors are rethinking the “SaaSpocalypse” narrative, with software stocks rebounding sharply as Okta’s results showed resilient demand and improving execution. Article Title

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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