Okta (NASDAQ:OKTA) Announces Earnings Results

Posted by Grant Hamersma on Mar 5th, 2026

Okta (NASDAQ:OKTA – Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.90 EPS for the quarter, topping analysts’ consensus estimates of $0.85 by $0.05, FiscalAI reports. Okta had a return on equity of 3.77% and a net margin of 6.87%.The business had revenue of $761.00 million during the quarter, compared to analysts’ expectations of $749.87 million. During the same period in the previous year, the firm earned $0.78 earnings per share. The firm’s quarterly revenue was up 11.6% compared to the same quarter last year. Okta updated its FY 2027 guidance to 3.740-3.820 EPS and its Q1 2027 guidance to 0.840-0.860 EPS.

Here are the key takeaways from Okta’s conference call:

Okta said its portfolio of new products drove meaningful bookings, accounting for approximately 30% of Q4 bookings, and deals including new products show about a 40% average contract uplift; Okta Identity Governance now has over 2,000 customers.
The company reported early traction for its AI agent offerings (Auth0 for AI Agents and Okta for AI Agents), citing several Q4 wins and a growing pipeline — management called agentic identity a major long-term TAM expansion even though agent revenue is still small versus a $3B revenue run-rate.
FY27 guidance is conservative: 9% total revenue growth (10% subscription), non-GAAP operating margin ~25–26%, with management flagging a ~1-point revenue headwind from shifting professional services to partners and a ~1-point free-cash-flow headwind tied to lower interest income and debt settlement.
Go-to-market momentum accelerated — Q4 saw a record ~$1.3B total contract value, surpassing $3B ACV; channel partners were involved in 18 of the top 20 deals and AWS Marketplace TC V grew ~45% to ~$750M, while Okta is adding quota-carrying sales capacity.
Financial position and capital actions are strong: ended Q4 with over $2.5B in cash/short-term investments, reiterated capital allocation discipline, announced a $1B share repurchase program and repurchased ~$79M (875k shares) in January.

Okta Price Performance

Shares of Okta stock opened at $71.74 on Thursday. The business has a fifty day simple moving average of $85.40 and a two-hundred day simple moving average of $87.51. Okta has a 1 year low of $68.77 and a 1 year high of $127.57. The company has a market capitalization of $12.71 billion, a price-to-earnings ratio of 65.82, a P/E/G ratio of 2.81 and a beta of 0.79.

Insider Activity at Okta

In other Okta news, CEO Todd Mckinnon sold 11,286 shares of the stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $90.96, for a total value of $1,026,574.56. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Eric Robert Kelleher sold 8,370 shares of the firm’s stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $90.19, for a total transaction of $754,890.30. Following the sale, the insider owned 11,266 shares of the company’s stock, valued at $1,016,080.54. This trade represents a 42.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 37,245 shares of company stock valued at $3,385,624 over the last three months. Company insiders own 5.68% of the company’s stock.

Hedge Funds Weigh In On Okta

Large investors have recently made changes to their positions in the company. First Trust Advisors LP boosted its stake in Okta by 28.2% in the 4th quarter. First Trust Advisors LP now owns 6,030,090 shares of the company’s stock valued at $521,422,000 after purchasing an additional 1,326,051 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Okta by 2.9% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,495,389 shares of the company’s stock valued at $215,776,000 after acquiring an additional 69,653 shares during the period. Ameriprise Financial Inc. boosted its position in shares of Okta by 9.3% in the third quarter. Ameriprise Financial Inc. now owns 2,226,676 shares of the company’s stock valued at $204,162,000 after acquiring an additional 189,036 shares during the period. Primecap Management Co. CA grew its stake in shares of Okta by 3.3% in the fourth quarter. Primecap Management Co. CA now owns 1,641,028 shares of the company’s stock valued at $141,900,000 after acquiring an additional 51,990 shares in the last quarter. Finally, Northern Trust Corp increased its position in Okta by 3.8% during the third quarter. Northern Trust Corp now owns 1,631,097 shares of the company’s stock worth $149,572,000 after acquiring an additional 60,398 shares during the period. Institutional investors own 86.64% of the company’s stock.

Okta announced that its board has authorized a share repurchase plan on Monday, January 5th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 6.8% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

OKTA has been the topic of several research reports. Zacks Research raised shares of Okta from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, February 25th. UBS Group restated a “buy” rating on shares of Okta in a report on Thursday, December 4th. Deutsche Bank Aktiengesellschaft reduced their price objective on Okta from $110.00 to $85.00 and set a “hold” rating for the company in a research report on Wednesday, December 3rd. Jefferies Financial Group lowered their price target on Okta from $125.00 to $105.00 and set a “buy” rating on the stock in a research report on Monday. Finally, Wall Street Zen raised Okta from a “hold” rating to a “buy” rating in a report on Saturday, February 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $105.79.

Get Our Latest Stock Report on OKTA

Key Headlines Impacting Okta

Here are the key news stories impacting Okta this week:

Positive Sentiment: Q4 results topped consensus — EPS of $0.90 and revenue of $761M beat estimates; Okta reported improved profitability and a large total contract value that supports durable enterprise demand. Okta Announces Fourth Quarter And Fiscal Year 2026 Financial Results
Positive Sentiment: Management is pushing an AI-agents growth narrative — Okta says agentic AI is creating new identity/security requirements (and opened visible use cases such as the PGA partnership), which supports upside over the medium term if adoption accelerates. Okta Sees AI Agents Fueling Next Growth Wave
Neutral Sentiment: Analyst reactions remain mixed-to-positive — several brokers kept Buy/Outperform ratings (Morgan Stanley reiterated a Buy PT $101; Baird stayed constructive), while coverage and price targets vary widely, leaving consensus expectations dispersed. Okta: Attractive AI-Driven Identity Positioning Supports Buy Rating Despite Near-Term Growth Constraints
Negative Sentiment: Q1 revenue guidance came in below Street expectations ($749M–$753M vs. ~$754.9M consensus), and company forecasts the slowest revenue growth since its IPO — that conservative near-term outlook is the main driver of investor concern. Okta forecasts slowest revenue growth since IPO amid economic uncertainty
Negative Sentiment: Market reaction: despite the beat, shares dipped on a “muted” outlook and conservative FY27 revenue posture — investors are focused on the near-term revenue cadence rather than longer-term AI opportunities. Okta beats Q4 estimates but shares dip on muted outlook

Okta Company Profile

(Get Free Report)

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.