William Blair Issues Pessimistic Estimate for Okta Earnings

Key Points

• William Blair has revised its Q3 2026 earnings per share estimate for Okta down to $0.19, from a previous forecast of $0.22.
• Okta recently reported Q2 earnings of $0.91 per share, exceeding consensus estimates of $0.84, with a year-over-year revenue increase of 12.7%.
• Analyst ratings remain varied, with a consensus target price of $118.25, reflecting a mix of "Buy," "Hold," and "Sell" ratings from 38 equity analysts.

Okta, Inc. (NASDAQ:OKTA - Free Report) - Stock analysts at William Blair cut their Q3 2026 earnings per share estimates for Okta in a report released on Wednesday, August 27th. William Blair analyst J. Ho now forecasts that the company will earn $0.19 per share for the quarter, down from their previous estimate of $0.22. The consensus estimate for Okta's current full-year earnings is $0.42 per share. William Blair also issued estimates for Okta's Q4 2026 earnings at $0.29 EPS, FY2026 earnings at $1.15 EPS, Q1 2027 earnings at $0.29 EPS, Q2 2027 earnings at $0.29 EPS, Q3 2027 earnings at $0.33 EPS, Q4 2027 earnings at $0.42 EPS and FY2027 earnings at $1.33 EPS.

Okta (NASDAQ:OKTA - Get Free Report) last posted its earnings results on Tuesday, August 26th. The company reported $0.91 EPS for the quarter, beating the consensus estimate of $0.84 by $0.07. The company had revenue of $728,000 billion during the quarter, compared to analyst estimates of $711.84 million. Okta had a return on equity of 3.31% and a net margin of 6.08%.The business's revenue was up 12.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.72 earnings per share. Okta has set its FY 2026 guidance at 3.330-3.380 EPS. Q3 2026 guidance at 0.740-0.750 EPS.

OKTA has been the topic of several other reports. Evercore ISI increased their target price on Okta from $122.00 to $130.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 28th. Arete started coverage on Okta in a research report on Monday, July 7th. They issued a "sell" rating and a $83.00 target price on the stock. Truist Financial raised Okta from a "hold" rating to a "buy" rating and lifted their price target for the company from $100.00 to $125.00 in a report on Monday, August 25th. Barclays lifted their price target on Okta from $100.00 to $115.00 and gave the company an "equal weight" rating in a report on Wednesday, August 27th. Finally, Arete Research raised Okta to a "strong sell" rating and set a $83.00 price target on the stock in a report on Monday, July 7th. Twenty-two analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $118.25.

Okta Stock Up 1.0%

NASDAQ OKTA traded up $0.90 during trading hours on Monday, hitting $90.72. The company had a trading volume of 1,217,908 shares, compared to its average volume of 3,738,607. Okta has a fifty-two week low of $70.56 and a fifty-two week high of $127.57. The business has a fifty day simple moving average of $94.47 and a 200-day simple moving average of $102.11. The firm has a market cap of $15.88 billion, a P/E ratio of 106.59, a price-to-earnings-growth ratio of 4.52 and a beta of 0.83.

Institutional Trading of Okta

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. American Trust bought a new stake in shares of Okta in the 2nd quarter worth approximately $489,000. Centaurus Financial Inc. bought a new stake in shares of Okta in the 2nd quarter worth approximately $132,000. Thrivent Financial for Lutherans raised its holdings in shares of Okta by 298.2% in the 2nd quarter. Thrivent Financial for Lutherans now owns 50,503 shares of the company's stock worth $5,049,000 after purchasing an additional 37,820 shares in the last quarter. Promus Capital LLC bought a new stake in shares of Okta in the 2nd quarter worth approximately $27,000. Finally, State of Wyoming bought a new stake in shares of Okta in the 2nd quarter worth approximately $84,000. 86.64% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other news, CFO Brett Tighe sold 10,000 shares of the stock in a transaction that occurred on Friday, July 18th. The shares were sold at an average price of $95.00, for a total value of $950,000.00. Following the completion of the transaction, the chief financial officer directly owned 132,288 shares in the company, valued at $12,567,360. This trade represents a 7.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Larissa Schwartz sold 2,244 shares of the stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $100.00, for a total transaction of $224,400.00. Following the completion of the transaction, the insider owned 23,640 shares of the company's stock, valued at $2,364,000. This trade represents a 8.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 88,594 shares of company stock valued at $8,382,790. 5.68% of the stock is currently owned by insiders.

About Okta

Okta, Inc operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials.