Okta (NASDAQ:OKTA) Releases Q2 2027 Earnings Guidance

Okta (NASDAQ:OKTA) issued an update on its second quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.950-0.970 for the period, compared to the consensus estimate of 0.840. The company issued revenue guidance of $790.0 million-$794.0 million, compared to the consensus revenue estimate of $791.1 million. Okta also updated its FY 2027 guidance to 3.790-3.870 EPS.

Okta Stock Up 5.8%

Shares of NASDAQ OKTA traded up $5.22 during trading on Thursday, hitting $94.72. The company had a trading volume of 8,726,015 shares, compared to its average volume of 3,435,628. The stock has a fifty day simple moving average of $78.68 and a two-hundred day simple moving average of $82.62. Okta has a fifty-two week low of $62.66 and a fifty-two week high of $107.84. The firm has a market capitalization 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) last posted its quarterly earnings results on Wednesday, March 4th. The company reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.05. The firm had revenue of $761.00 million for the quarter, compared to the consensus estimate of $749.87 million. Okta had a net margin of 8.05% and a return on equity of 4.18%. The company’s revenue for the quarter was up 11.6% on a year-over-year basis. During the same period last year, the firm posted $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, analysts anticipate that Okta will post 1.61 earnings per share for the current year.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on OKTA shares. Stifel Nicolaus decreased their price target on shares of Okta from $121.00 to $92.00 and set a “buy” rating on the stock in a research note on Thursday, March 5th. Zacks Research downgraded shares of Okta from a “strong-buy” rating to a “hold” rating in a research note on Thursday, March 26th. JPMorgan Chase & Co. raised their price target on shares of Okta from $103.00 to $114.00 and gave the stock an “overweight” rating in a research note on Thursday. Wells Fargo & Company raised their price target on shares of Okta from $76.00 to $85.00 and gave the stock an “equal weight” rating in a research note on Thursday, May 21st. Finally, Oppenheimer decreased their price target on shares of Okta from $120.00 to $110.00 and set an “outperform” rating on the stock in a research note on Thursday, March 5th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $102.44.

Insider Activity at Okta

In other news, insider Eric Robert Kelleher sold 16,818 shares of Okta stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $80.00, for a total transaction of $1,345,440.00. Following the sale, the insider owned 15,470 shares of the company’s stock, valued at approximately $1,237,600. The trade was a 52.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Larissa Schwartz sold 6,377 shares of Okta stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $79.75, for a total transaction of $508,565.75. Following the sale, the insider directly owned 54,825 shares in the company, valued at approximately $4,372,293.75. The trade was a 10.42% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 70,884 shares of company stock valued at $5,625,648 over the last ninety days. Corporate insiders own 4.61% of the company’s stock.

More Okta News

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

Institutional Trading of Okta

Several institutional investors have recently made changes to their positions in OKTA. First Trust Advisors LP raised its position in shares of Okta by 28.2% during the 4th quarter. First Trust Advisors LP now owns 6,030,090 shares of the company’s stock valued at $521,422,000 after buying an additional 1,326,051 shares during the period. Alyeska Investment Group L.P. raised its position in shares of Okta by 276.9% during the 3rd quarter. Alyeska Investment Group L.P. now owns 1,403,499 shares of the company’s stock valued at $128,701,000 after buying an additional 1,031,083 shares during the period. Freestone Grove Partners LP raised its stake in shares of Okta by 187.4% in the 4th quarter. Freestone Grove Partners LP now owns 847,024 shares of the company’s stock valued at $73,242,000 after acquiring an additional 552,324 shares during the period. Man Group plc lifted its holdings in shares of Okta by 132.1% in the 3rd quarter. Man Group plc now owns 741,924 shares of the company’s stock worth $68,034,000 after acquiring an additional 422,296 shares during the last quarter. Finally, Broad Bay Capital Management LP acquired a new position in shares of Okta in the 4th quarter worth approximately $19,888,000. Hedge funds and other 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.