- Okta Inc. (OKTA) reported a strong Q4 with earnings of $0.78 per share and $682 million in revenue, beating consensus estimates, while its stock rose 12%-plus to $98.00 in premarket trading.
- The company issued upbeat guidance for Q1 (EPS $0.76 – $0.77, revenue $678 – $680 million) and FY26 (EPS $3.15 – $3.20, revenue $2.85 – $2.86 billion), supported by a 25% y/y increase in RPO to $4.215 billion.
- D.A. Davidson upgraded Okta to ‘Buy’ with a $125 price target, citing high sales productivity, enterprise growth, and durable double-digit growth following the earnings beat.
Okta Inc. (OKTA) has delivered a robust financial performance that has caught the attention of investors and analysts alike. The identity management company reported fourth-quarter earnings of $0.78 per share, excluding non-recurring items, surpassing the consensus estimate of $0.74 by $0.04. This strong showing was complemented by revenues of $682 million, reflecting a nearly 13% increase from the previous year and exceeding the expected $669 million. The stock responded accordingly, climbing $10.61 or 12.17% to $98.00 in premarket trading on Tuesday, signaling market approval of the results.
Looking ahead, Okta provided optimistic guidance that further supports confidence in its trajectory. For the first quarter ending April, the company projects earnings per share between $0.76 and $0.77, excluding non-recurring items, against a consensus of $0.70. Revenue expectations for the same period are set at $678 million to $680 million, topping the consensus of $669.83 million. For the full fiscal year 2026, Okta anticipates earnings per share of $3.15 to $3.20, well above the $2.93 consensus, with revenues projected at $2.85 billion to $2.86 billion compared to the $2.79 billion expected. This forward-looking guidance underscores the company’s belief in sustained growth momentum.
A deeper dive into Okta’s metrics reveals the strength of its subscription-based business model. Remaining Performance Obligations (RPO), which represent the company’s subscription backlog, reached $4.215 billion, a notable 25% increase year-over-year. Within this, the current RPO (cRPO) – the portion expected to be recognized as revenue over the next 12 months – stood at $2.248 billion, up 15% from the fourth quarter of fiscal 2024. For the first quarter, Okta estimates cRPO to range between $2.185 billion and $2.190 billion, indicating a solid 12% growth rate year-over-year. These figures highlight the company’s ability to secure long-term customer commitments, a critical factor in the competitive cybersecurity and identity management landscape.
The positive earnings and outlook prompted an upgrade from D.A. Davidson, with analyst Rudy Kessinger raising Okta’s rating to ‘Buy’ from ‘Neutral’ and increasing the price target to $125 from $90. Kessinger emphasized the “very strong” Q4 results and the significant upward revision to fiscal 2026 guidance. He pointed to several drivers behind this performance, including a multi-year high in sales productivity, growing contributions from enterprise and channel segments, and increased impact from newer products. The analyst concluded that Okta’s double-digit growth now appears durable, a sentiment that aligns with the company’s operational success and market positioning.
Okta’s results come at a time when demand for identity and access management solutions is surging, driven by heightened cybersecurity threats and the shift to cloud-based infrastructure. The company’s ability to outperform expectations and raise guidance reflects its strategic focus on innovation and execution. With $682 million in Q4 revenue and a subscription backlog of $4.215 billion, Okta is capitalizing on these trends effectively. The projected $2.85 billion to $2.86 billion in fiscal 2026 revenue further suggests that the company is poised to maintain its leadership in the sector, delivering value to both customers and shareholders as it navigates an evolving digital landscape.
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