Okta (OKTA) AI Stock Analysis

• Market Cap: $15.70B
• Dividend Yield: N/A
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): 105.0
• Beta (1Y): 1.19
• Revenue Growth: 12.68%
• EPS Growth: N/A
• Country: US
• Employees: 5,914
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.91
• Shares Outstanding: 168,459,010
• 10 Day Avg. Volume: 1,790,237
• 30 Day Avg. Volume: 2,416,014
• PEG Ratio: -5.29
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 6.12
• P/FCF Ratio: 21.89
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 5.71
• Enterprise Value/Gross Profit: 7.43
• Enterprise Value/Ebitda: 56.15
• 1Y Price Target: $121.03
• Price Target Upside: 35.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 32

• Rating: 63 Neutral
• Price Target: $95.00 ▲(6.66% Upside)

Okta's overall stock score is driven by a positive earnings call with strong future guidance and strategic initiatives. However, the high P/E ratio and declining revenue growth rate weigh on the score. Technical indicators suggest a lack of strong momentum, and the absence of a dividend yield affects valuation.

Positive Factors

Strategic Acquisitions

Acquiring Acxiom Security enhances Okta's capabilities in privileged access management, strengthening its product offerings and competitive position in identity management.

Public Sector Growth

Strong performance in the public sector, including a major deal with the Department of Defense, indicates robust demand and potential for sustained revenue growth in a stable market.

Improved Financial Outlook

Increased guidance for revenue and margins reflects management's confidence in strategic initiatives and operational improvements, supporting long-term financial health.

Negative Factors

Declining Revenue Growth

A significant decline in revenue growth could indicate challenges in market expansion or competitive pressures, potentially impacting long-term growth prospects.

Free Cash Flow Decline

A decline in free cash flow growth may limit Okta's ability to invest in new opportunities or weather economic downturns, affecting future financial flexibility.

Challenges in Federal Vertical

Challenges in the federal vertical, such as contract restructuring and procurement delays, could hinder growth in a key market segment, affecting revenue stability.

Okta Business Overview & Revenue Model

Company Description

Okta, Inc. is a leading identity and access management company that provides secure identity solutions for enterprises, enabling organizations to manage and secure user authentication into applications, devices, and APIs. Founded in 2009, Okta operates primarily in the technology sector, focusing on identity management, security, and user experience across various industries. Its core products include single sign-on (SSO), multi-factor authentication (MFA), lifecycle management, and API access management, which help organizations streamline user access while enhancing security.

How the Company Makes Money

Okta generates revenue primarily through a subscription-based model, offering various pricing tiers based on the number of users and the level of service required. The company's key revenue streams include subscriptions to its identity management platform and associated services, which are billed annually. Additionally, Okta benefits from upselling and cross-selling opportunities with existing customers by introducing new features or products. The company has established significant partnerships with major technology providers, such as Microsoft, AWS, and Google, which contribute to its earnings by integrating Okta's services with widely used platforms and expanding its customer base. Furthermore, Okta's focus on enterprise clients allows it to secure long-term contracts, providing a steady stream of recurring revenue.

Okta Financial Statement Overview

Summary

Okta's financial statements reflect a company in transition. While profitability and operational efficiency have improved, the decline in revenue growth and free cash flow are areas of concern. The balance sheet remains strong with low leverage, providing a solid foundation for future growth. Continued focus on revenue generation and cash flow management will be crucial for sustaining this positive momentum.

Income Statement

Okta's income statement shows a mixed performance. The company has achieved a positive net profit margin of 4.96% in the TTM, a significant improvement from previous losses, indicating a turnaround in profitability. However, the revenue growth rate has declined by 24.07% in the TTM, which is a concern. Gross profit margin remains strong at 76.90%, showcasing efficient cost management. The EBIT and EBITDA margins have also improved, reflecting better operational efficiency.

Balance Sheet

The balance sheet of Okta is relatively stable with a low debt-to-equity ratio of 0.14 in the TTM, indicating low financial leverage. Return on equity has improved to 2.10%, showing better utilization of shareholder funds. The equity ratio is healthy, suggesting a strong capital structure. However, the company needs to maintain this trajectory to ensure long-term financial stability.

Cash Flow

Okta's cash flow statement reveals some challenges. The free cash flow growth rate has declined by 41.79% in the TTM, which could impact future investments. However, the operating cash flow to net income ratio is robust at 168.27, indicating strong cash generation relative to net income. The free cash flow to net income ratio is nearly 1, showing efficient cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.76B	2.61B	2.26B	1.86B	1.30B	835.00M
Gross Profit	2.13B	1.99B	1.68B	1.31B	904.00M	617.00M
EBITDA	281.00M	139.00M	-245.00M	-676.00M	-651.00M	-156.00M
Net Income	168.00M	28.00M	-355.00M	-815.00M	-848.00M	-266.00M
Balance Sheet
Total Assets	9.55B	9.44B	8.99B	9.31B	9.21B	3.30B
Cash, Cash Equivalents and Short-Term Investments	2.86B	2.52B	2.20B	2.58B	2.50B	2.56B
Total Debt	940.00M	952.00M	1.30B	2.37B	2.03B	1.97B
Total Liabilities	2.80B	3.03B	3.10B	3.84B	3.28B	2.60B
Stockholders Equity	6.75B	6.41B	5.89B	5.47B	5.92B	694.04M
Cash Flow
Free Cash Flow	838.00M	730.00M	488.00M	63.00M	87.00M	111.00M
Operating Cash Flow	853.00M	750.00M	512.00M	86.00M	104.00M	128.00M
Investing Cash Flow	-158.00M	-314.00M	441.00M	-130.00M	-367.00M	-1.30B
Financing Cash Flow	-339.00M	-359.00M	-883.00M	48.00M	89.00M	1.09B

Okta Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 89.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OKTA, the sentiment is Negative. The current price of 89.07 is below the 20-day moving average (MA) of 90.54, below the 50-day MA of 91.07, and below the 200-day MA of 98.77, indicating a bearish trend. The MACD of -1.03 indicates Positive momentum. The RSI at 46.69 is Neutral, neither overbought nor oversold. The STOCH value of 44.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OKTA.

Okta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTNT	76 Outperform	$65.56B	34.15	165.17%	―	14.46%	48.06%
ZS	71 Outperform	$51.13B	―	-2.70%	―	23.31%	31.04%
NET	69 Neutral	$75.92B	―	-11.04%	―	27.32%	-11.94%
CRWD	66 Neutral	$132.33B	―	-8.99%	―	23.46%	-270.07%
OKTA	63 Neutral	$15.70B	105.02	2.61%	―	12.68%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SAIL	53 Neutral	$12.44B	―	―	―	25.99%	-25.47%

Okta Corporate Events

Okta’s Earnings Call Highlights Growth and Optimism

The recent earnings call for Okta, Inc. conveyed a predominantly positive sentiment, highlighting the company’s strong Q2 performance and growth prospects. The call emphasized significant achievements in the public sector, a robust pipeline, and strategic acquisitions, all contributing to an optimistic outlook. Despite minor challenges in the federal vertical and stabilization of Net Revenue Retention (NRR), the sentiment remained upbeat, with raised revenue and margin guidance for fiscal year 2026.

Okta, Inc. Reports Strong Q2 2026 Financial Results

Okta, Inc. is a leading independent identity management company that provides secure identity solutions for businesses and developers, empowering them to use technology safely and efficiently. The company operates primarily in the technology sector, focusing on authentication and authorization services.

Okta Reports Q2 2026 Financial Results with Revenue Growth

On August 26, 2025, Okta announced its financial results for the second quarter of fiscal year 2026, highlighting a 13% year-over-year revenue growth and a 12% increase in subscription revenue. The company reported significant improvements in operating cash flow and net income, reflecting strong product adoption and performance in the public sector. Additionally, Okta has reached a preliminary settlement in ongoing stockholder derivative litigation, with a final approval hearing scheduled for October 24, 2025.

The most recent analyst rating on (OKTA) stock is a Buy with a $119.00 price target. To see the full list of analyst forecasts on Okta stock, see the OKTA Stock Forecast page.

Okta Expands Board with Two New Directors

On August 11, 2025, Okta, Inc. announced the expansion of its Board of Directors from eight to ten members, appointing David Schellhase as an independent director and Mary Agnes (Maggie) Wilderotter as a non-independent director, effective August 13, 2025. These appointments are expected to enhance Okta’s strategic positioning as it aims to secure AI and expand its identity market leadership. Both directors bring extensive experience in technology and corporate strategy, with Schellhase having a background in legal and operational roles at major tech companies and Wilderotter holding significant leadership positions across various industries. Their insights are anticipated to contribute to Okta’s growth and innovation in the identity security landscape.

The most recent analyst rating on (OKTA) stock is a Hold with a $81.00 price target. To see the full list of analyst forecasts on Okta stock, see the OKTA Stock Forecast page.