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Okta (OKTA) Up 0.7% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Okta (OKTA - Free Report) . Shares have added about 0.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Okta due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Okta, Inc. before we dive into how investors and analysts have reacted as of late.
Okta reported fiscal fourth-quarter 2026 earnings of 90 cents per share, which beat the Zacks Consensus Estimate by 6.36% and increased 15.4% year over year.
Total revenues increased 11.6% year over year to $761 million, surpassing the consensus mark by 1.59%. The year-over-year upside can be attributed to higher subscription revenues, which rose 11.5% year over year to $747 million and accounted for 98.2% of total revenues. Professional services and other revenues (1.8% of total revenues) jumped 16.7% year over year to $14 million.
Location-wise, revenues from the United States contributed 83% to total revenues in the fiscal fourth quarter. The figure increased 12.04% year over year to $605 million. International revenues contributed 21.4% to total revenues. The figure increased 9.86% year over year to $156 million.
Okta’s Q4 Top-Line Details
Customers with more than $100K in Annual Contract Value increased 6% year over year to 5,100. The dollar-based retention rate for the trailing 12 months was 106%, down 1% year over year.
Remaining Performance Obligations (RPO) totaled $4.827 billion, up 15% year over year. The current RPO, expected to be recognized over the next 12 months, was $2.513 billion, up 12% year over year.
Okta’s Q4 Operating Details
Fourth-quarter fiscal 2026 non-GAAP gross margin increased 20 basis points (bps) on a year-over-year basis to 82%.
As a percentage of revenues, research and development expenses decreased 60 bps year over year to 15.2%. General and administrative expenses decreased 210 bps year over year to 10.5%. Sales and marketing expenses increased 100 bps year over year to 29.7%.
Non-GAAP operating margin expanded 190 bps year over year to 26.5% in the reported quarter.
Okta’s Balance Sheet
Okta had $2.55 billion in cash, cash equivalents, and short-term investments as of Jan. 31, 2026.
Net cash provided by operations was $258 million in the reported quarter, while free cash flow was $252 million.
Okta Offers Positive Guidance
For fiscal first-quarter 2027, Okta expects revenues in the $749-$753 million range, indicating year-over-year growth of 9%. Current RPO is expected to be between $2.440 billion and $2.450 billion, suggesting year-over-year growth of 10%.
Non-GAAP operating income is expected to be in the range of $176-$180 million. Operating margin is expected to be in the range of 23% to 24%. Non-GAAP earnings are anticipated to be in the range of 84-86 cents per share, assuming diluted weighted-average shares outstanding of approximately 185 million.
Non-GAAP free cash flow margin is expected to be approximately between 33% and 35%.
For fiscal 2027, revenues are expected to be in the range of $3.17-$3.19 billion, indicating year-over-year growth of 9%. Non-GAAP operating income is expected to be in the range of $795-$815 million, while the operating margin is expected to be 25%-26%. Non-GAAP earnings are anticipated to be between $3.74 and $3.82 per share, assuming diluted weighted-average shares outstanding of approximately 185 million.
Non-GAAP free cash flow margin is expected to be approximately 27%-28%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Okta has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Okta has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Okta (OKTA) Up 0.7% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Okta (OKTA - Free Report) . Shares have added about 0.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Okta due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Okta, Inc. before we dive into how investors and analysts have reacted as of late.
OKTA Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
Okta reported fiscal fourth-quarter 2026 earnings of 90 cents per share, which beat the Zacks Consensus Estimate by 6.36% and increased 15.4% year over year.
Total revenues increased 11.6% year over year to $761 million, surpassing the consensus mark by 1.59%. The year-over-year upside can be attributed to higher subscription revenues, which rose 11.5% year over year to $747 million and accounted for 98.2% of total revenues. Professional services and other revenues (1.8% of total revenues) jumped 16.7% year over year to $14 million.
Location-wise, revenues from the United States contributed 83% to total revenues in the fiscal fourth quarter. The figure increased 12.04% year over year to $605 million. International revenues contributed 21.4% to total revenues. The figure increased 9.86% year over year to $156 million.
Okta’s Q4 Top-Line Details
Customers with more than $100K in Annual Contract Value increased 6% year over year to 5,100. The dollar-based retention rate for the trailing 12 months was 106%, down 1% year over year.
Remaining Performance Obligations (RPO) totaled $4.827 billion, up 15% year over year. The current RPO, expected to be recognized over the next 12 months, was $2.513 billion, up 12% year over year.
Okta’s Q4 Operating Details
Fourth-quarter fiscal 2026 non-GAAP gross margin increased 20 basis points (bps) on a year-over-year basis to 82%.
As a percentage of revenues, research and development expenses decreased 60 bps year over year to 15.2%. General and administrative expenses decreased 210 bps year over year to 10.5%. Sales and marketing expenses increased 100 bps year over year to 29.7%.
Non-GAAP operating margin expanded 190 bps year over year to 26.5% in the reported quarter.
Okta’s Balance Sheet
Okta had $2.55 billion in cash, cash equivalents, and short-term investments as of Jan. 31, 2026.
Net cash provided by operations was $258 million in the reported quarter, while free cash flow was $252 million.
Okta Offers Positive Guidance
For fiscal first-quarter 2027, Okta expects revenues in the $749-$753 million range, indicating year-over-year growth of 9%. Current RPO is expected to be between $2.440 billion and $2.450 billion, suggesting year-over-year growth of 10%.
Non-GAAP operating income is expected to be in the range of $176-$180 million. Operating margin is expected to be in the range of 23% to 24%. Non-GAAP earnings are anticipated to be in the range of 84-86 cents per share, assuming diluted weighted-average shares outstanding of approximately 185 million.
Non-GAAP free cash flow margin is expected to be approximately between 33% and 35%.
For fiscal 2027, revenues are expected to be in the range of $3.17-$3.19 billion, indicating year-over-year growth of 9%. Non-GAAP operating income is expected to be in the range of $795-$815 million, while the operating margin is expected to be 25%-26%. Non-GAAP earnings are anticipated to be between $3.74 and $3.82 per share, assuming diluted weighted-average shares outstanding of approximately 185 million.
Non-GAAP free cash flow margin is expected to be approximately 27%-28%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Okta has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Okta has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.