Okta (NASDAQ:OKTA) Releases FY 2027 Earnings Guidance

Okta (NASDAQ:OKTA) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 3.900-3.940 for the period, compared to the consensus earnings per share estimate of 3.430. 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 Q3 2027 guidance to 0.920-0.940 EPS.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on OKTA shares. TD Cowen lifted their target price on shares of Okta from $105.00 to $160.00 and gave the stock a “hold” rating in a research note on Monday, August 17th. Citigroup reaffirmed a “market outperform” rating on shares of Okta in a report on Thursday. Wall Street Zen cut Okta from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Truist Financial boosted their price target on shares of Okta from $120.00 to $165.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. Finally, HC Wainwright began coverage on Okta in a report on Monday, July 6th. They issued a “buy” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Okta currently has a consensus rating of “Moderate Buy” and an average target price of $148.74.

Okta Stock Performance

NASDAQ:OKTA opened at $134.42 on Thursday. Okta has a fifty-two week low of $62.66 and a fifty-two week high of $157.00. The firm has a market cap of $23.36 billion, a PE ratio of 97.41, a price-to-earnings-growth ratio of 4.70 and a beta of 0.77. The business has a 50 day moving average price of $139.27 and a 200-day moving average price of $104.50.

Okta (NASDAQ:OKTA) last posted its earnings results on Wednesday, August 26th. The company reported $1.05 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.09. Okta had a return on equity of 4.15% and a net margin of 8.24%.The firm had revenue of $805.00 million for the quarter, compared to analysts’ expectations of $793.00 million. During the same period last year, the firm earned $0.91 EPS. The company’s quarterly revenue was up 10.6% on a year-over-year basis. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. Research analysts predict that Okta will post 1.75 EPS for the current year.

Insiders Place Their Bets

In other Okta news, CFO Brett Tighe sold 65,000 shares of the stock in a transaction on Monday, June 8th. The shares were sold at an average price of $117.25, for a total transaction of $7,621,250.00. Following the completion of the transaction, the chief financial officer owned 119,680 shares in the company, valued at $14,032,480. This trade represents a 35.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 24,971 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $134.13, for a total value of $3,349,360.23. Following the sale, the insider directly owned 23,477 shares of the company’s stock, valued at $3,148,970.01. This represents a 51.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 165,347 shares of company stock worth $21,827,342 over the last 90 days. Company insiders own 4.61% of the company’s stock.

Key Okta News

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly results exceeded expectations. Okta reported adjusted earnings of $1.05 per share versus the $0.96 analyst consensus, while revenue increased 10.6% year over year to $805 million, topping estimates of $793 million. Okta Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Raised guidance provides an additional catalyst. Okta now expects fiscal 2027 revenue of approximately $3.216 billion to $3.226 billion, representing 10% to 11% growth and above its prior forecast of $3.19 billion to $3.21 billion. Third-quarter revenue guidance of $813 million to $817 million and EPS guidance of $0.92 to $0.94 also exceeded Wall Street expectations. Okta Lifts Full-Year Outlook as AI Agents Spur Demand
• Positive Sentiment: AI-related demand is strengthening Okta’s growth narrative. Management highlighted increasing adoption of AI agents, new products contributing roughly 30% of bookings, record non-fourth-quarter bookings and partner-led sales. Investors view identity controls as increasingly important for securing AI-driven workflows. Okta and CrowdStrike Stocks Jump After Earnings
• Neutral Sentiment: Analyst support improved, but valuation remains a consideration. Robert W. Baird reiterated a Buy rating and set a $185 price target. However, Okta’s elevated valuation—including a P/E ratio near 97—may limit further gains if growth or guidance begins to slow. Okta Buy Rating and Raised Price Target

Hedge Funds Weigh In On Okta

Several hedge funds have recently bought and sold shares of the company. Sivia Capital Partners LLC purchased a new stake in Okta during the 2nd quarter worth about $244,000. Centaurus Financial Inc. boosted its holdings in shares of Okta by 29.7% in the 3rd quarter. Centaurus Financial Inc. now owns 1,709 shares of the company’s stock valued at $157,000 after purchasing an additional 391 shares during the last quarter. Larson Financial Group LLC increased its position in Okta by 103.3% during the 3rd quarter. Larson Financial Group LLC now owns 1,159 shares of the company’s stock worth $106,000 after purchasing an additional 589 shares in the last quarter. Horizon Investments LLC purchased a new stake in Okta during the 3rd quarter worth $145,000. Finally, Brown Brothers Harriman & Co. raised its holdings in shares of Okta by 73.7% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,563 shares of the company’s stock valued at $143,000 after buying an additional 663 shares during the period. 86.64% of the stock is owned by hedge funds and other 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.