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.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on OKTA. Wall Street Zen raised Okta from a “hold” rating to a “buy” rating in a research note on Saturday. Stifel Nicolaus cut their price objective on shares of Okta from $130.00 to $121.00 and set a “buy” rating for the company in a research note on Wednesday, December 3rd. The Goldman Sachs Group reduced their price target on Okta from $137.00 to $117.00 and set a “buy” rating on the stock in a research report on Wednesday, December 3rd. Citigroup reiterated a “neutral” rating on shares of Okta in a research report on Monday, January 12th. Finally, BTIG Research dropped their price objective on Okta from $116.00 to $90.00 and set a “buy” rating for the company in a research note on Monday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $107.50.

Okta Stock Performance

Shares of Okta stock traded down $0.78 during midday trading on Wednesday, reaching $71.74. 6,748,866 shares of the company’s stock traded hands, compared to its average volume of 3,092,554. The stock has a 50 day moving average of $85.73 and a 200-day moving average of $87.62. Okta has a 12 month low of $68.77 and a 12 month high of $127.57. The company has a market cap of $12.71 billion, a PE ratio of 65.82, a price-to-earnings-growth ratio of 2.87 and a beta of 0.79.

Okta (NASDAQ:OKTA) last issued its quarterly earnings data on Wednesday, March 4th. The company reported $0.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.85 by $0.05. Okta had a net margin of 6.87% and a return on equity of 3.77%. The business had revenue of $761.00 million for the quarter, compared to the consensus estimate of $749.87 million. 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, equities analysts anticipate that Okta will post 0.42 earnings per share for the current fiscal year.

Okta declared that its Board of Directors has initiated a stock repurchase plan 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 stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity at Okta

In other Okta news, CEO Todd Mckinnon sold 11,286 shares of the firm’s 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Larissa Schwartz sold 1,899 shares of the company’s stock in a transaction that occurred on Wednesday, January 7th. The stock was sold at an average price of $90.74, for a total value of $172,315.26. Following the transaction, the insider owned 38,164 shares in the company, valued at $3,463,001.36. This trade represents a 4.74% decrease in their position. 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 in the last three months. Corporate insiders own 5.68% of the company’s stock.

Okta News Roundup

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Okta beat Q4 consensus on revenue and operating profitability, showing margin improvement and stronger net income for the year — evidence of improving operating leverage. Okta Announces Fourth Quarter And Fiscal Year 2026 Financial Results
• Positive Sentiment: Management gave FY‑2027 EPS guidance well above consensus (EPS 3.740–3.820 vs. street ~2.80) and guided Q1 EPS above expectations — a sign management expects profitable growth over the year despite a cautious revenue stance. Okta Posts Strong Fiscal 2026 Results With Higher Profitability
• Positive Sentiment: At least one major analyst house (Robert W. Baird) kept a Buy/outperform view, arguing the company’s broad-based outperformance plus conservative FY27 outlook skews risk/reward toward buys. Okta: Broad-Based Outperformance and Conservative FY27 Outlook Skew Risk/Reward Toward Buy
• Neutral Sentiment: Analyst coverage and price targets remain mixed — Wells Fargo initiated coverage at equal‑weight with a $76 target while other firms (Jefferies, Cantor, BTIG) keep higher targets — leaving consensus upside dispersed. Okta (NASDAQ:OKTA) Coverage Initiated by Analysts at Wells Fargo & Company
• Negative Sentiment: Okta guided Q1 revenue to $749–753M, below Wall Street’s estimate, and warned growth would slow — management called out macro/enterprise spending weakness, the weakest revenue-growth outlook since the IPO. That guidance is the main driver of the share decline. Okta forecasts slowest revenue growth since IPO amid economic uncertainty
• Negative Sentiment: Market reaction: despite the beat on the quarter, the softer near‑term revenue outlook and growth‑slowdown commentary prompted selling pressure and elevated trading volume around the print. Okta beats fourth-quarter estimates, but issues weak guidance

Institutional Trading of Okta

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