Okta (OKTA) AI Stock Analysis

• Market Cap: $15.99B
• Dividend Yield: N/A
• Average Volume (3M): 3.22M
• Price to Earnings (P/E): 141.8
• Beta (1Y): 1.30
• Revenue Growth: 13.51%
• EPS Growth: N/A
• Country: US
• Employees: 5,914
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Infrastructure
• EPS (TTM): 0.37
• Shares Outstanding: 167,163,420
• 10 Day Avg. Volume: 2,863,276
• 30 Day Avg. Volume: 3,219,440
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 7.30
• Enterprise Value/Gross Profit: 9.52
• Enterprise Value/Ebitda: 127.11
• 1Y Price Target: $121.70
• Price Target Upside: 33.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 36

• Rating: 68 Neutral
• Price Target: $99.00 ▲(8.37% Upside)

Okta's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting record profitability and strategic growth initiatives. However, technical analysis and valuation concerns, such as high P/E ratio and weak momentum indicators, weigh down the score. Continued focus on profitability and market conditions will be crucial for future performance.

Positive Factors

Growth Opportunities

Okta will benefit from the growing market for machine identity security as the leading IAM vendor.

Market Position

Okta is well-positioned to consolidate the identity security market because of their large installed base and ubiquity within organizations.

Product Success

New products such as Identity Governance, PAM, and Device Access contributed over 20% to the first quarter bookings.

Negative Factors

Fiscal Projections

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

Investor caution remains due to concerns about seat compression, GTM transition, and delays in Federal renewals.

Revenue Forecast

Management guided second quarter revenue and cRPO growth slightly below expectations while maintaining the revenue forecast for the fiscal year.

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 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.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.68B	2.61B	2.26B	1.86B	1.30B	835.42M
Gross Profit	2.06B	1.99B	1.68B	1.31B	903.80M	617.74M
EBITDA	154.00M	25.00M	-230.00M	-676.00M	-649.90M	-156.00M
Net Income	130.00M	28.00M	-355.00M	-815.00M	-848.41M	-266.33M
Balance Sheet
Total Assets	9.37B	9.44B	8.99B	9.31B	9.21B	3.30B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.52B	2.20B	2.58B	2.50B	2.56B
Total Debt	947.00M	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	6.57B	6.41B	5.89B	5.47B	5.92B	694.04M
Cash Flow
Free Cash Flow	760.00M	730.00M	488.00M	63.00M	87.36M	110.59M
Operating Cash Flow	772.00M	750.00M	512.00M	86.00M	104.12M	127.96M
Investing Cash Flow	-240.00M	-314.00M	441.00M	-130.00M	-366.81M	-1.31B
Financing Cash Flow	-102.27M	-359.00M	-883.00M	48.00M	89.07M	1.09B

Okta Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 91.35 is below the 20-day moving average (MA) of 93.22, below the 50-day MA of 95.43, and below the 200-day MA of 96.39, indicating a bearish trend. The MACD of -1.68 indicates Negative momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 56.85 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
ZS	73 Outperform	$42.43B	―	-2.68%	―	25.46%	49.20%
PANW	72 Outperform	$123.18B	115.19	17.45%	―	14.87%	-57.43%
NET	70 Neutral	$68.36B	―	-11.04%	―	27.32%	-11.94%
CRWD	69 Neutral	$104.39B	721.64	-5.76%	―	25.94%	-226.80%
OKTA	68 Neutral	$15.99B	141.83	2.08%	―	13.51%	―
FTNT	67 Neutral	$61.32B	31.94	165.17%	―	14.46%	48.06%
Sector *	61 Neutral	$35.48B	7.36	-10.33%	1.90%	8.86%	-10.35%

Okta Corporate Events

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.

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.

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.