Okta Q1 Revenue Beats Estimates on Enterprise Demand

Author: Ayşe Erginsoy…

Okta Fiscal Q1 Results

US identity management firm Okta reported fiscal Q1 revenue growth of 11% year-over-year, beating analyst expectations. The company attributed growth to enterprise demand and its new product portfolio.

Financial Highlights

Non-GAAP diluted EPS rose to $0.91 from $0.86 a year ago. Net income was $74 million. Subscription revenue reached $750 million.

Outlook

Okta expects Q2 revenue of $790-$794 million (9% YoY growth) and FY27 revenue of $3.185-$3.205 billion (9%-10% YoY growth). The guidance includes a 1 percentage point headwind from shifting services to partners.

Growth Drivers

Strength with large enterprises and improved sales productivity drove Q1 results. Success of new products, particularly Okta Identity Governance, contributed to growth. Higher remaining performance obligations (RPO) and current RPO supported revenue visibility.

Analyst Coverage

The average analyst rating is 'buy' with 35 'strong buy' or 'buy', 11 'hold', and 1 'sell' or 'strong sell'. The median 12-month price target is $100.00 (11.7% above the May 27 close of $89.50). The stock trades at 23 times next 12-month earnings.

Impacted Symbols

Symbols affected by this headline and their sentiment signals

OKTAPositive

Okta, Inc.

Okta's revenue and profitability exceeded expectations, enterprise demand remains strong, and the company provided positive guidance. This will directly and positively impact the stock price.

Impact score85%

The news, analyses, and comments on this platform do not constitute investment advice. When making investment decisions, you should conduct your own research and consult with a qualified financial advisor if necessary. FiNews cannot be held responsible for any losses that may arise from the use of this information.

More Headlines