Okta (OKTA) AI Stock Analysis

• Market Cap: $16.65B
• Dividend Yield: N/A
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 147.7
• Beta (1Y): 1.31
• Revenue Growth: 13.51%
• EPS Growth: N/A
• Country: US
• Employees: 5,914
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Infrastructure
• EPS (TTM): 0.86
• Shares Outstanding: 167,163,420
• 10 Day Avg. Volume: 3,927,648
• 30 Day Avg. Volume: 3,193,102
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 7.30
• Enterprise Value/Gross Profit: 9.52
• Enterprise Value/Ebitda: 127.11
• 1Y Price Target: $123.25
• Price Target Upside: 28.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 35

• Rating: 68 Neutral
• Price Target: $104.00 ▲(8.36% Upside)

Okta's strong financial performance and positive earnings call are offset by its high valuation and mixed technical indicators. The company's growth prospects remain promising, but profitability challenges and macroeconomic uncertainties create risks.

Positive Factors

Financial Performance

Okta continues to make strides towards improving profitability, reporting record net income of $158mn and a healthy free cash flow margin of 35%.

Growth Opportunities

Opportunities for growth are present due to prioritization of identity security and a growing portfolio across Workforce and Customer Identity.

Market Positioning

Okta is positioned as a share gainer in modern identity, particularly as customers consolidate legacy point PAM/IGA stacks.

Negative Factors

Growth Deceleration

Projections for total billings call for growth of 8.6% and 11.1% in fiscal years 2026 and 2027, respectively, which might indicate slower growth than anticipated.

Investor Concerns

The decline in the cRPO coverage ratio raised investor worries about hidden signals of weakness in demand, contrasting with the company's narrative.

Revenue Concerns

The company's Q2 CRPO guidance implies a decline, which is concerning as CRPO has never declined in a Q2 before.

Okta Business Overview & Revenue Model

Company Description

Okta, Inc. is a leading independent provider of identity management solutions for enterprises, focusing on securing user authentication and access to applications and devices. Operating in the cloud computing sector, Okta provides a robust identity platform for businesses, helping them manage and secure user identities and streamline access across various applications. Its core products and services include the Okta Identity Cloud, which consists of products like Single Sign-On (SSO), Multi-Factor Authentication (MFA), Universal Directory, and Lifecycle Management, catering to the needs of businesses looking to enhance security and user experiences.

How the Company Makes Money

Okta makes money primarily through subscription fees for its cloud-based identity and access management services. The company offers its products on a per-user, per-month subscription basis, which provides a recurring revenue model. Key revenue streams include its Identity Cloud products, encompassing both workforce identity solutions for employee access and customer identity solutions for managing customer experiences. Significant partnerships, such as integrations with major cloud service providers and application vendors, enhance Okta's product offerings and expand its market reach. Factors contributing to its earnings include the rising demand for secure digital solutions and the growing need for efficient access management in increasingly complex IT environments.

Okta Financial Statement Overview

Summary

Okta exhibits strong revenue growth and improving cash flow metrics, reflecting operational efficiency and financial health. The balance sheet is solid, with manageable leverage and strong equity backing. However, the company needs to address profitability challenges to sustain long-term financial success. Overall, Okta is well-positioned for growth within its industry, but continued focus on improving margins and profitability will be key.

Income Statement

Okta has demonstrated a strong revenue growth trajectory, with TTM revenue increasing significantly from previous years. The gross profit margin remains robust, indicating effective cost management. However, the company still faces challenges with profitability, as evidenced by negative EBIT and fluctuating net income. The improvement in EBITDA margin in the TTM period suggests operational efficiency gains, although the path to consistent profitability remains a work in progress.

Balance Sheet

The balance sheet reflects a strong equity position with a favorable equity ratio, highlighting financial stability. The debt-to-equity ratio is manageable, indicating prudent leverage use. Improvements in stockholders' equity strengthen the company's financial foundation. However, the relatively high level of liabilities warrants careful attention to ensure liquidity adequacy in the event of market fluctuations.

Cash Flow

The cash flow analysis reveals strong operational cash flow generation, with significant growth in free cash flow, particularly in the TTM period. The operating cash flow to net income ratio indicates efficient cash conversion, supporting financial flexibility. Despite fluctuations in financing and investing cash flows, the overall positive cash flow trajectory enhances Okta's capacity for reinvestment and strategic initiatives.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.61B	2.26B	1.86B	1.30B	835.42M
Gross Profit	1.99B	1.68B	1.31B	903.80M	617.74M
EBITDA	25.00M	-230.00M	-676.00M	-649.90M	-156.00M
Net Income	28.00M	-355.00M	-815.00M	-848.41M	-266.33M
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	2.59B
Total Debt	952.00M	1.27B	2.33B	2.00B	1.95B
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	87.36M	110.59M
Operating Cash Flow	750.00M	512.00M	86.00M	104.12M	127.96M
Investing Cash Flow	-314.00M	441.00M	-130.00M	-366.81M	-1.31B
Financing Cash Flow	-359.00M	-883.00M	48.00M	89.07M	1.09B

Okta Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 95.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 95.98 is above the 20-day moving average (MA) of 95.81, below the 50-day MA of 99.65, and above the 200-day MA of 95.14, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 19.13 is Positive, 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
CRWD	77 Outperform	$111.33B	721.64	-5.76%	―	25.94%	-226.80%
PANW	76 Outperform	$0.00	96.76	21.16%	―	13.91%	-50.96%
NET	75 Outperform	$0.00	―	-11.04%	―	27.32%	-11.94%
ZS	73 Outperform	$43.90B	―	-2.68%	―	25.46%	49.20%
FTNT	69 Neutral	$73.64B	39.60	205.91%	―	13.83%	58.13%
Sector *	69 Neutral	¥234.30B	14.83	7.64%	2.58%	9.20%	5.94%
OKTA	68 Neutral	$16.65B	147.69	2.08%	―	13.51%	―

Okta Corporate Events

Okta Board Member Resigns Before Annual Meeting

On June 20, 2025, Benjamin Horowitz announced his resignation from Okta‘s Board of Directors, effective at the company’s annual meeting on June 24, 2025, leading to a reduction in board size from nine to eight. At the annual meeting, stockholders voted on four proposals, including the election of directors, ratification of Ernst & Young LLP as the independent auditor, approval of executive compensation, and the frequency of future votes on executive compensation, with decisions aligning with board recommendations.

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.

Okta Reports Strong Q1 2026 Financial Results

On May 27, 2025, Okta announced its financial results for the first quarter of fiscal year 2026, ending April 30, 2025. The company reported a 12% increase in total revenue and subscription revenue year-over-year, with record GAAP and non-GAAP operating profitability. Okta’s remaining performance obligations grew by 21%, and the company achieved an operating cash flow of $241 million. The announcement underscores Okta’s focus on driving profitable growth and innovation in identity security solutions, with significant implications for its market positioning and stakeholder confidence.

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.