Okta (NASDAQ:OKTA) Releases Q3 2027 Earnings Guidance

Okta (NASDAQ:OKTA) updated its third quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.920-0.940 for the period, compared to the consensus earnings per share estimate of 0.830. The company issued revenue guidance of $813.0 million-$817.0 million, compared to the consensus revenue estimate of $808.0 million. Okta also updated its FY 2027 guidance to 3.900-3.940 EPS.

Okta Stock Up 28.6%

OKTA stock opened at $172.91 on Friday. Okta has a twelve month low of $62.66 and a twelve month high of $174.85. The company has a market cap of $30.05 billion, a PE ratio of 104.16, a price-to-earnings-growth ratio of 4.83 and a beta of 0.77. The business’s 50-day simple moving average is $140.37 and its 200 day simple moving average is $105.10.

Okta (NASDAQ:OKTA) last posted its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 EPS for the quarter, beating the consensus estimate of $0.96 by $0.09. Okta had a return on equity of 4.50% and a net margin of 9.63%.The firm had revenue of $805.00 million during the quarter, compared to analysts’ expectations of $793.00 million. During the same quarter in the prior year, the firm posted $0.91 EPS. The company’s revenue for the quarter 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. On average, equities research analysts anticipate that Okta will post 1.75 EPS for the current year.

Analyst Upgrades and Downgrades

Several brokerages recently commented on OKTA. Wells Fargo & Company raised Okta from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $150.00 to $180.00 in a research report on Monday, August 17th. KeyCorp increased their price objective on shares of Okta from $180.00 to $190.00 and gave the company an “overweight” rating in a research note on Thursday. Arete Research set a $127.00 price objective on shares of Okta and gave the stock a “buy” rating in a report on Tuesday, May 26th. Cantor Fitzgerald lifted their target price on shares of Okta from $170.00 to $200.00 and gave the company an “overweight” rating in a research report on Thursday. Finally, Truist Financial reissued a “buy” rating and issued a $200.00 target price (up from $165.00) on shares of Okta in a research note on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $168.92.

Insider Buying and Selling

In other news, insider Eric Robert Kelleher sold 3,977 shares of the business’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $114.10, for a total value of $453,775.70. Following the sale, the insider owned 19,618 shares in the company, valued at approximately $2,238,413.80. The trade was a 16.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brett Tighe sold 65,000 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $117.25, for a total transaction of $7,621,250.00. Following the completion of the sale, the chief financial officer directly owned 119,680 shares in the company, valued at approximately $14,032,480. The trade was a 35.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 165,347 shares of company stock valued at $21,827,342. 4.61% of the stock is owned by insiders.

Trending Headlines about Okta

Here are the key news stories impacting Okta this week:

• Positive Sentiment: Quarterly earnings beat expectations: Okta reported adjusted earnings of $1.05 per share, ahead of the $0.96 consensus estimate, while revenue rose 10.6% year over year to $805 million, exceeding forecasts of approximately $793 million. Okta pops after topping estimates
• Positive Sentiment: Raised fiscal 2027 guidance: Management now expects full-year revenue of roughly $3.216 billion to $3.226 billion, up from its previous forecast. Third-quarter revenue guidance of $813 million to $817 million and adjusted EPS guidance of $0.92 to $0.94 also exceeded analyst estimates. Okta lifts full-year outlook
• Positive Sentiment: AI is strengthening the cybersecurity opportunity: The growth of AI agents and increasingly sophisticated AI-powered threats is driving enterprise demand for identity controls, access governance and security tools. Okta launched Agent SSO to help customers manage identities and permissions for AI agents, while new products reportedly contributed about 30% of bookings. Okta launches Agent SSO
• Positive Sentiment: Analyst sentiment improved: Several firms raised price targets following the results, including Morgan Stanley and Truist to $200, RBC to $195, and JPMorgan to $190. Wells Fargo also upgraded the stock, citing signs that Okta’s growth strategy is turning a corner. Wells Fargo upgrades Okta
• Neutral Sentiment: Investment consideration: Okta’s improved outlook and AI positioning have increased investor optimism, but the stock is trading near its 52-week high and carries elevated valuation measures, including a P/E ratio above 100. Some analysts, including Citi and Mizuho, maintained neutral ratings with $165 targets, signaling limited near-term upside at recent levels.

Hedge Funds Weigh In On Okta

A number of institutional investors and hedge funds have recently added to or reduced their stakes in OKTA. Sivia Capital Partners LLC bought a new position in shares of Okta in the second quarter valued at approximately $244,000. Alamea Verwaltungs GmbH grew its position in Okta by 34.9% during the 2nd quarter. Alamea Verwaltungs GmbH now owns 2,866 shares of the company’s stock worth $287,000 after acquiring an additional 741 shares during the last quarter. Panagora Asset Management Inc. bought a new stake in Okta during the 4th quarter worth approximately $239,000. Integrated Wealth Concepts LLC acquired a new stake in Okta during the 1st quarter valued at $225,000. Finally, Fairscale Capital LLC increased its holdings in Okta by 14.8% during the 4th quarter. Fairscale Capital LLC now owns 2,548 shares of the company’s stock valued at $220,000 after purchasing an additional 329 shares in the last quarter. 86.64% of the stock is currently owned by institutional investors and hedge funds.

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.