Okta (NASDAQ:OKTA) Updates Q1 2027 Earnings Guidance

Okta (NASDAQ:OKTA) issued an update on its first quarter 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 0.840-0.860 for the period, compared to the consensus EPS estimate of 0.650. The company issued revenue guidance of $749.0 million-$753.0 million, compared to the consensus revenue estimate of $754.7 million. Okta also updated its FY 2027 guidance to 3.740-3.820 EPS.

Okta Stock Up 11.0%

Shares of Okta stock opened at $79.65 on Friday. The firm has a market cap of $14.12 billion, a price-to-earnings ratio of 60.80, a price-to-earnings-growth ratio of 2.78 and a beta of 0.79. Okta has a 52-week low of $68.77 and a 52-week high of $127.57. The company’s 50-day simple moving average is $85.22 and its 200-day simple moving average is $87.46.

Okta (NASDAQ:OKTA) last released its quarterly earnings data on Wednesday, March 4th. The company reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.85 by $0.05. Okta had a return on equity of 4.22% and a net margin of 8.05%.The firm had revenue of $761.00 million during the quarter, compared to analysts’ expectations of $749.87 million. During the same quarter in the prior year, the business posted $0.78 earnings per share. Okta’s revenue was up 11.6% compared to the same quarter last year. Okta has set its FY 2027 guidance at 3.740-3.820 EPS and its Q1 2027 guidance at 0.840-0.860 EPS. Equities research analysts anticipate that Okta will post 0.42 EPS for the current year.

Okta announced that its board has approved a share repurchase program 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 programs are typically an indication that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on OKTA. Cantor Fitzgerald dropped their target price on shares of Okta from $115.00 to $100.00 and set an “overweight” rating for the company in a report on Friday, February 27th. Roth Mkm reaffirmed a “buy” rating on shares of Okta in a report on Wednesday, December 3rd. Canaccord Genuity Group lowered their target price on Okta from $120.00 to $95.00 and set a “buy” rating on the stock in a report on Thursday. Stephens cut their price target on Okta from $120.00 to $95.00 and set an “overweight” rating for the company in a research note on Thursday. Finally, Susquehanna lowered their price objective on shares of Okta from $105.00 to $80.00 and set a “neutral” rating on the stock in a research note on Wednesday, December 3rd. 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 issued a Sell rating to the stock. According to MarketBeat.com, Okta currently has a consensus rating of “Moderate Buy” and a consensus target price of $102.37.

Insider Activity

In related news, insider Larissa Schwartz sold 1,899 shares of the firm’s stock in a transaction that occurred on Wednesday, January 7th. The shares were sold at an average price of $90.74, for a total transaction of $172,315.26. Following the sale, the insider owned 38,164 shares in the company, valued at approximately $3,463,001.36. This trade represents a 4.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Brett Tighe sold 10,000 shares of the business’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $95.07, for a total value of $950,700.00. Following the completion of the transaction, the chief financial officer owned 134,385 shares of the company’s stock, valued at $12,775,981.95. This trade represents a 6.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 35,927 shares of company stock valued at $3,272,658 in the last 90 days. Company insiders own 5.68% of the company’s stock.

Key Headlines Impacting Okta

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

Hedge Funds Weigh In On Okta

Institutional investors have recently added to or reduced their stakes in the business. Utah Retirement Systems boosted its stake in Okta by 0.6% in the 4th quarter. Utah Retirement Systems now owns 28,605 shares of the company’s stock worth $2,473,000 after buying an additional 163 shares during the last quarter. Kestra Advisory Services LLC raised its stake in Okta by 1.7% during the fourth quarter. Kestra Advisory Services LLC now owns 9,685 shares of the company’s stock worth $837,000 after purchasing an additional 166 shares during the period. O Shaughnessy Asset Management LLC boosted its holdings in shares of Okta by 3.1% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 5,745 shares of the company’s stock valued at $497,000 after purchasing an additional 173 shares during the last quarter. Diversify Advisory Services LLC grew its stake in Okta by 0.7% during the second quarter. Diversify Advisory Services LLC now owns 27,086 shares of the company’s stock worth $2,708,000 after buying an additional 190 shares during the period. Finally, CreativeOne Wealth LLC lifted its holdings in shares of Okta by 10.3% during the 3rd quarter. CreativeOne Wealth LLC now owns 2,868 shares of the company’s stock valued at $263,000 after acquiring an additional 267 shares in the last quarter. 86.64% of the stock is currently owned by institutional investors and hedge funds.

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.