Okta (OKTA) AI Stock Analysis

• Market Cap: $14.43B
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 79.3
• Beta (1Y): 1.20
• Revenue Growth: 12.12%
• EPS Growth: N/A
• Country: US
• Employees: 5,914
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.82
• Shares Outstanding: 168,459,010
• 10 Day Avg. Volume: 2,749,159
• 30 Day Avg. Volume: 2,114,756
• 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: 0.99
• Enterprise Value/Revenue: 5.03
• Enterprise Value/Gross Profit: 6.53
• Enterprise Value/Ebitda: 45.22
• 1Y Price Target: $111.83
• Price Target Upside: 30.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 31
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $86.00 ▲(0.12% Upside)

Okta's overall stock score is driven by its strong financial stability and positive earnings call sentiment, highlighting growth opportunities in AI security. However, the high valuation and bearish technical indicators weigh down the score. Continued focus on improving profitability and reversing revenue decline will be crucial for future growth.

Positive Factors

Strong Balance Sheet

A robust balance sheet with significant cash reserves provides Okta with financial flexibility to invest in growth opportunities and weather economic uncertainties.

AI Security Growth Catalyst

By capitalizing on AI security, Okta can tap into a growing market, potentially driving long-term revenue growth and enhancing its competitive position.

Revenue Growth Outlook

A positive revenue growth outlook indicates Okta's ability to expand its market presence and increase its customer base, supporting sustained business performance.

Negative Factors

Declining Revenue Growth

A declining revenue growth rate could signal challenges in market expansion and customer acquisition, potentially impacting long-term business momentum.

Free Cash Flow Decline

A significant decline in free cash flow growth can limit Okta's ability to invest in new initiatives and may affect its financial stability over time.

Limited FY '27 Guidance

The absence of guidance for FY '27 introduces uncertainty about Okta's future financial performance, which could affect investor confidence and strategic planning.

Okta Business Overview & Revenue Model

Company Description

Okta, Inc. is a leading identity and access management company based in the United States. It specializes in providing cloud-based solutions that enable organizations to securely manage user authentication and authorization across various applications and platforms. Okta's core products include Single Sign-On (SSO), Multi-Factor Authentication (MFA), and lifecycle management, catering to businesses of all sizes and across multiple sectors, including technology, healthcare, and finance.

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-Factor Authentication, which are typically billed annually or monthly based on the number of users or applications integrated. Additionally, Okta has established strategic partnerships with other technology providers, which can enhance its offerings and drive customer acquisition. The company's success is also bolstered by the increasing demand for security solutions in response to the growing concerns over data breaches and cyber threats.

Okta Financial Statement Overview

Summary

Okta demonstrates financial stability with strong gross margins and cash flow management. However, declining revenue growth and modest profitability metrics suggest challenges in scaling operations efficiently. The balance sheet is solid with low leverage, providing a buffer against financial risks.

Income Statement

Okta's income statement shows a mixed performance. The TTM gross profit margin is strong at 76.83%, indicating efficient cost management. However, the net profit margin is low at 3.39%, reflecting challenges in converting revenue into profit. The revenue growth rate has declined significantly by 24.04% TTM, which is concerning. EBIT and EBITDA margins have improved but remain modest, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.06 TTM, indicating low leverage and financial risk. The return on equity is modest at 2.59% TTM, showing some profitability but room for improvement. The equity ratio is healthy, suggesting a strong capital structure. Overall, the balance sheet reflects financial stability with potential for enhanced returns.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio of 317.87 TTM, indicating robust cash generation relative to net income. The free cash flow to net income ratio is also high at 98.56%, highlighting effective cash management. However, the free cash flow growth rate has declined by 18.35% TTM, which could impact future liquidity. Overall, cash flow remains a strong aspect of Okta's financials.

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

Okta Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 85.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 85.9 is above the 20-day moving average (MA) of 82.50, below the 50-day MA of 86.99, and below the 200-day MA of 97.64, indicating a neutral trend. The MACD of -0.79 indicates Negative momentum. The RSI at 56.26 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 is Negative, 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	71 Outperform	$61.68B	34.07	228.04%	―	14.78%	22.52%
CRWD	67 Neutral	$129.08B	-405.28	-8.88%	―	22.05%	-341.24%
OKTA	62 Neutral	$14.43B	79.35	2.96%	―	12.12%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ZS	60 Neutral	$38.57B	―	-2.41%	―	23.24%	-8.83%
NET	58 Neutral	$71.51B	―	-8.88%	―	28.06%	-7.44%
SAIL	39 Underperform	$11.05B	―	―	―	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.