Wall Street Tempers Optimism on OKTA Stock over Cautious Guidance

Okta (OKTA) shares fell almost 10% in pre-market trading on Wednesday following the company’s Q1 earnings for FY26. Despite beating Q1 fiscal 2026 earnings and revenue estimates, cautious guidance weighed on investor sentiment. The identity management company said it’s adopting a “cautious approach” to its forecast. In response to the tempered outlook, several analysts have adjusted their price targets for Okta.

Analysts Trim OKTA Price Targets Post Q1 Earnings

Following the results, RBC trimmed its price target on OKTA stock from $143 to $135. Top-rated analyst Matthew Hedberg noted that while fiscal 2026 guidance is flat to slightly up, it now factors in macroeconomic uncertainties.

Likewise, Barclays five-star-rated analyst Saket Kalia lowered his price target from $135 to $120 and maintained a Hold rating.

Meanwhile, UBS analyst Roger Boyd noted that Okta’s recent financial results were lukewarm, with revenue beating estimates by just 1% and cRPO (calculated remaining performance obligations) rising 14% year-over-year, marking a modest 2% beat. The Q2 cRPO growth guidance of 10–11% also fell short of investor expectations.

Moreover, Boyd’s analysis showed a 1% drop in Okta’s net retention rate to 106% and a slowdown in bookings for the quarter. However, management didn’t identify any clear weaknesses and minimized concerns about the company’s exposure to broader economic challenges. Overall, Boyd lowered his price target on OKTA to $130 from $150.

Is OKTA a Good Stock to Buy Now?

According to TipRanks, OKTA stock has a consensus Moderate Buy rating among 36 Wall Street analysts. That rating is based on 21 Buys, 14 Holds, and one Sell assigned in the last three months. The average OKTA stock price target of $123.62 implies a 1.5% downside from current levels.

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