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.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Barclays upped their price objective on Okta from $120.00 to $170.00 and gave the company an “overweight” rating in a research report on Monday, August 17th. Citigroup reiterated an “outperform” rating on shares of Okta in a research report on Friday, May 29th. Sanford C. Bernstein lowered shares of Okta from an “outperform” rating to a “hold” rating in a research note on Monday, July 6th. Weiss Ratings upgraded shares of Okta from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, June 3rd. Finally, Mizuho raised their price target on shares of Okta from $125.00 to $145.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 19th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $140.54.

Okta Stock Performance

NASDAQ OKTA traded up $3.81 on Wednesday, reaching $134.42. 6,466,864 shares of the stock traded hands, compared to its average volume of 3,478,360. Okta has a 12 month low of $62.66 and a 12 month high of $157.00. The company has a market cap of $23.36 billion, a price-to-earnings ratio of 97.41, a PEG ratio of 4.71 and a beta of 0.77. The company has a fifty day moving average price of $138.84 and a 200-day moving average price of $104.13.

Okta (NASDAQ:OKTA) last announced its quarterly earnings results on Thursday, May 28th. The company reported $0.91 EPS for the quarter, beating the consensus estimate of $0.85 by $0.06. The firm had revenue of $765.00 million for the quarter, compared to analyst estimates of $751.84 million. Okta had a return on equity of 4.15% and a net margin of 8.24%.The business’s revenue for the quarter was up 11.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.86 earnings per share. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. As a group, research analysts anticipate that Okta will post 1.75 earnings per share for the current fiscal year.

Insider Buying and Selling at Okta

In related news, CFO Brett Tighe sold 65,000 shares of Okta stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $117.25, for a total transaction of $7,621,250.00. Following the transaction, the chief financial officer directly owned 119,680 shares of the company’s stock, valued at $14,032,480. This trade represents a 35.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 24,971 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $134.13, for a total transaction of $3,349,360.23. Following the completion of the transaction, the insider directly owned 23,477 shares of the company’s stock, valued at $3,148,970.01. This trade represents a 51.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 165,347 shares of company stock valued at $21,827,342 in the last ninety days. Company insiders own 4.61% of the company’s stock.

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.

Hedge Funds Weigh In On Okta

A number of large investors have recently added to or reduced their stakes in the company. EFG International AG purchased a new position in shares of Okta in the 4th quarter worth approximately $61,000. CIBC Private Wealth Group LLC boosted its stake in Okta by 378.3% in the third 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 in the last quarter. Los Angeles Capital Management LLC acquired a new stake in Okta in the fourth quarter valued at approximately $71,000. Johnson Financial Group Inc. purchased a new position in Okta in the third quarter worth $83,000. Finally, State of Wyoming purchased a new position in Okta in the second quarter worth $84,000. 86.64% of the stock is currently owned by institutional investors.

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.