Okta (NASDAQ:OKTA) Releases FY 2027 Earnings Guidance

Okta (NASDAQ:OKTA) updated its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 3.900-3.940 for the period, compared to the consensus EPS 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.

Okta Stock Performance

Shares of NASDAQ:OKTA traded up $3.81 during midday trading on Wednesday, reaching $134.42. The company had a trading volume of 5,926,579 shares, compared to its average volume of 3,455,782. The company has a fifty day simple moving average of $138.84 and a two-hundred day simple moving average of $104.13. The firm has a market cap of $23.36 billion, a price-to-earnings ratio of 97.41, a price-to-earnings-growth ratio of 4.71 and a beta of 0.77. Okta has a 1-year low of $62.66 and a 1-year high of $157.00.

Okta (NASDAQ:OKTA) last posted its quarterly earnings data on Wednesday, August 26th. The company reported $0.65 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.96 by ($0.31). Okta had a return on equity of 4.15% and a net margin of 8.24%.Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. Analysts expect that Okta will post 1.75 EPS for the current year.

Analyst Upgrades and Downgrades

OKTA has been the subject of a number of recent analyst reports. Capital One Financial set a $171.00 price objective on shares of Okta and gave the stock an “overweight” rating in a research note on Thursday, July 16th. KeyCorp restated an “overweight” rating and issued a $180.00 target price on shares of Okta in a report on Friday, August 21st. DA Davidson raised their target price on Okta from $110.00 to $130.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Citizens Jmp upgraded Okta from a “market perform” rating to an “outperform” rating and set a $170.00 price target on the stock in a report on Wednesday, August 12th. Finally, Raymond James Financial lowered Okta from a “buy” rating to a “strong sell” rating in a research report on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $140.54.

Insider Activity at Okta

In related news, insider Larissa Schwartz sold 2,463 shares of the stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $120.00, for a total transaction of $295,560.00. Following the completion of the sale, the insider directly owned 25,241 shares in the company, valued at approximately $3,028,920. This trade represents a 8.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Todd Mckinnon sold 68,936 shares of Okta stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $146.62, for a total value of $10,107,396.32. Following the sale, the chief executive officer owned 38,484 shares of the company’s stock, valued at approximately $5,642,524.08. This represents a 64.17% 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 in the last quarter. 4.61% of the stock is owned by corporate insiders.

Key Headlines Impacting Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Palo Alto Networks CEO Nikesh Arora reportedly held acquisition discussions with Okta CEO Todd McKinnon in late 2024 and early 2025. Although the talks stalled over valuation, the report highlights Okta’s strategic appeal and product fit within the broader cybersecurity market. Palo Alto Networks CEO held acquisition talks with both Okta and Datadog
• Positive Sentiment: Okta was included among five stocks identified as having bullish setups heading into the fourth quarter, supported by analyst price-target increases, earnings expectations and potential AI-related growth catalysts. 5 Stocks to Buy in September Before Wall Street Catches On
• Neutral Sentiment: Pre-earnings coverage focused on expectations for Okta’s fiscal second quarter, including revenue, guidance, customer trends and profitability. The reports provided context ahead of the release but did not add new operating data. Okta Q2 Earnings Report Preview
• Neutral Sentiment: Reported August short-interest data showed zero shares and a zero-day days-to-cover ratio, suggesting the figures were incomplete or unreliable rather than indicating a meaningful change in bearish positioning.
• Neutral Sentiment: An Okta and Google Workspace webinar promoted the company’s workplace-technology integrations, offering modest evidence of ecosystem engagement but no immediate financial impact. Delivering Seamless Experiences for Modern Work
• Negative Sentiment: Okta reported quarterly EPS of $0.65, missing the $0.96 consensus estimate by $0.31. The 4.15% return on equity and 8.24% net margin also underscore profitability concerns, making the earnings miss the main downside catalyst for investors.

Institutional Investors Weigh In On Okta

Several institutional investors and hedge funds have recently modified their holdings of the business. EFG International AG bought a new stake in Okta in the fourth quarter worth $61,000. CIBC Private Wealth Group LLC increased its holdings in shares of Okta by 378.3% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 727 shares of the company’s stock valued at $67,000 after acquiring an additional 575 shares during the last quarter. Los Angeles Capital Management LLC acquired a new position in shares of Okta during the 4th quarter valued at about $71,000. Johnson Financial Group Inc. acquired a new position in Okta during the third quarter valued at approximately $83,000. Finally, State of Wyoming bought a new position in shares of Okta in the second quarter valued at approximately $84,000. Institutional investors and hedge funds own 86.64% of the company’s stock.

Okta Company Profile

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.