Okta (OKTA)
NASDAQ:OKTA
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Okta
(NASDAQ:OKTA)
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Rating:64Neutral
Price Target:
$85.00
▲(7.08% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by improving fundamentals (profitability turnaround, strong margins, and solid cash generation) and a generally positive earnings-call setup centered on disciplined profitability. These positives are tempered by very weak valuation on the provided P/E metric and a soft technical backdrop (below key moving averages), plus uncertainty flagged in the most recent annual growth data.
Positive Factors
Strong cash generation
Operating and free cash flow expanded sharply from 2023–2025 with FCF tracking net income near 1x, demonstrating high cash conversion and earnings quality. This durable cash generation provides flexibility to invest in product development, repay liabilities, and fund buybacks while supporting multi-year execution.
Negative Factors
Revenue-growth durability concerns
An 'extremely negative/inconsistent' 2026 revenue growth datapoint clouds the multi-year growth narrative. Durable margin and cash improvements rely on steady ARR expansion; persistent top-line volatility could undermine operating leverage, slow reinvestment payoffs, and increase execution risk over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Operating and free cash flow expanded sharply from 2023–2025 with FCF tracking net income near 1x, demonstrating high cash conversion and earnings quality. This durable cash generation provides flexibility to invest in product development, repay liabilities, and fund buybacks while supporting multi-year execution.
Read all positive factors
Okta (OKTA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.04B
Dividend YieldN/A
Average Volume (3M)3.62M
Price to Earnings (P/E)63.2
Beta (1Y)1.00
Revenue Growth12.12%
EPS GrowthN/A
CountryUS
Employees5,914
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.90
Shares Outstanding169,200,450
10 Day Avg. Volume3,122,561
30 Day Avg. Volume3,621,272
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)2.12
Price to Sales (P/S)5.09
P/FCF Ratio16.42
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue4.10
Enterprise Value/Gross Profit5.29
Enterprise Value/Ebitda36.45
Forecast
1Y Price Target
$100.66Price Target Upside26.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering31
EPS Forecast (FY)3.79
Revenue Forecast (FY)$3.18B
Okta Business Overview & Revenue Model
Company Description
Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers ...
How the Company Makes Money
Okta primarily generates revenue through a subscription-based model, charging customers for access to its identity management platform. The company's key revenue streams include fees for its various services, such as Single Sign-On and Multi-Facto...
Okta Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue across different business units, highlighting which segments are driving growth and where Okta might face challenges or opportunities.
Analyzes revenue across different business units, highlighting which segments are driving growth and where Okta might face challenges or opportunities.
Data provided by:
The Fly
The FlyOkta Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:May 28, 2026
Earnings Call Sentiment Positive
The call emphasized strong product momentum, enterprise and channel traction, record contract activity, a healthy balance sheet, and disciplined profitability while investing for growth. Early success in AI-agent products and a growing new-product mix (~30% of Q4 bookings) are notable positives. Near-term headwinds include a conservative FY'27 revenue guide (~9% growth), a deliberate shift of professional services to partners (≈1-point revenue impact), flat upsell-driven retention trends, and the early-stage nature of agent pricing and revenue contribution. On balance, management presented tangible wins and clear strategic direction while acknowledging measured near-term conservatism and execution risks in the transition to the agentic market.Positive Updates
New-Product Momentum
New products (Identity Governance, Privileged Access, ISPM, ITP, Device Access, Fine-Grained Authorization, Auth0 for AI Agents, Okta for AI Agents) comprised ~30% of Q4 bookings, with deals that included new products delivering an average contract uplift of ~40%.
Negative Updates
Modest Near-Term Revenue Guidance
FY'27 revenue guidance of ~9% growth was viewed as conservative by some investors/analysts and is modest relative to the company’s longer-term growth ambitions; management cited prudent guidance assumptions.
Read all updates
Q4-2026 Updates
Positive
Negative
New-Product Momentum
New products (Identity Governance, Privileged Access, ISPM, ITP, Device Access, Fine-Grained Authorization, Auth0 for AI Agents, Okta for AI Agents) comprised ~30% of Q4 bookings, with deals that included new products delivering an average contract uplift of ~40%.
Read all positive updates
Company Guidance
Okta guided Q1 FY‑27 to total revenue growth of 9%, current RPO growth of 10%, non‑GAAP operating margin of 23–24% and free cash flow margin of 33–35%; for full‑year FY‑27 it reiterated total revenue growth of 9%, non‑GAAP operating margin of 25–26% and free cash flow margin of 27–28%. Management characterized the outlook as roughly a 10‑point subscription revenue guide versus a 9‑point total revenue guide (subscription accelerating faster as professional services declines), updated its non‑GAAP tax rate assumption to 21% (from 26%) for Q1 and FY‑27, and disclosed about a 1‑point FY‑27 revenue headwind from shifting professional services to partners plus roughly a 1‑point FCF margin headwind related to lower interest income, the share repurchase program and planned cash settlement of remaining 2026 notes.Okta Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
83
Very Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.92B | 2.61B | 2.26B | 1.86B | 1.30B |
| Gross Profit | 2.26B | 1.99B | 1.68B | 1.31B | 904.00M |
| EBITDA | 249.00M | 139.00M | -245.00M | -676.00M | -651.00M |
| Net Income | 235.00M | 28.00M | -355.00M | -815.00M | -848.00M |
Balance Sheet | |||||
| Total Assets | 9.71B | 9.44B | 8.99B | 9.31B | 9.21B |
| Cash, Cash Equivalents and Short-Term Investments | 2.55B | 2.52B | 2.20B | 2.58B | 2.50B |
| Total Debt | 422.00M | 952.00M | 1.30B | 2.37B | 2.03B |
| Total Liabilities | 2.71B | 3.03B | 3.10B | 3.84B | 3.28B |
| Stockholders Equity | 7.00B | 6.41B | 5.89B | 5.47B | 5.92B |
Cash Flow | |||||
| Free Cash Flow | 905.00M | 730.00M | 488.00M | 63.00M | 87.00M |
| Operating Cash Flow | 914.00M | 750.00M | 512.00M | 86.00M | 104.00M |
| Investing Cash Flow | 271.00M | -314.00M | 441.00M | -130.00M | -367.00M |
| Financing Cash Flow | -750.00M | -359.00M | -883.00M | 48.00M | 89.00M |
Okta Technical Analysis
Neutral
79.38
Price Trends
82.11
Negative
84.40
Negative
88.91
Negative
Market Momentum
-0.53
Negative
50.15
Neutral
32.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OKTA, the sentiment is Neutral. The current price of 79.38 is above the 20-day moving average (MA) of 77.90, below the 50-day MA of 82.11, and below the 200-day MA of 88.91, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 32.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OKTA.
Okta Risk Analysis
Okta disclosed 58 risk factors in its most recent earnings report. Okta reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Okta Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $59.96B | 31.84 | 123.64% | ― | 14.78% | 22.52% | |
69 Neutral | $99.57B | -686.05 | -4.68% | ― | 22.05% | -341.24% | |
66 Neutral | $22.75B | ― | -3.48% | ― | 23.24% | -8.83% | |
64 Neutral | $14.04B | 63.23 | 3.45% | ― | 12.12% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $73.96B | -671.68 | -7.48% | ― | 28.06% | -7.44% | |
41 Neutral | $6.92B | -84.00 | -8.01% | ― | 23.38% | -30.16% |
* Technology Sector Average
OKTA
Okta
73.23
-34.76
-32.19%
FTNT
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78.20
-18.40
-19.05%
ZS
Zscaler
133.16
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-35.71%
CRWD
CrowdStrike Holdings
369.58
12.47
3.49%
NET
Cloudflare
203.02
88.10
76.66%
SAIL
SailPoint, Inc.
12.28
-7.26
-37.15%
Okta Corporate Events
Business Operations and StrategyFinancial Disclosures
Okta Posts Strong Fiscal 2026 Results With Higher Profitability
Positive
Mar 4, 2026
On March 4, 2026, Okta reported fourth-quarter and full-year fiscal 2026 results showing moderate top-line growth and stronger profitability, with Q4 revenue up 11% year-over-year to $761 million and full-year revenue up 12% to $2.919 billion. The...
Business Operations and StrategyStock Buyback
Okta Authorizes $1 Billion Share Repurchase Program
Positive
Jan 5, 2026
On January 5, 2026, Okta announced that its board of directors had approved a share repurchase program authorizing the company to buy back up to $1 billion of its Class A common stock, effective immediately. The move, which can be executed via ope...
Business Operations and StrategyExecutive/Board Changes
Okta strengthens board with new independent technology directors
Positive
Dec 19, 2025
On December 18–19, 2025, Okta expanded its board of directors from 10 to 11 members and appointed technology veterans Rob Bernshteyn and Paul Sagan as independent directors, assigning Bernshteyn to the Audit and Cybersecurity Risk Committees...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.