We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Okta (OKTA - Free Report) posted first-quarter fiscal 2027 earnings of 91 cents per share, up 5.8% year over year, and surpassed the Zacks Consensus Estimate by 6.75%.
Revenues rose 11.2% from the year-ago quarter to $765 million, beating the Zacks Consensus Estimate by 1.82%. The uptick can be attributed to steady subscription momentum, which increased 11% year over year to $750 million, continuing to account for the vast majority of the top line. Professional services and other revenues were $15 million, unchanged from the year-ago quarter, underscoring how product-led growth is driving the quarter’s revenue cadence.
Location-wise, revenues from the United States contributed 83% to total revenues in the fiscal first quarter. The figure increased 11.15% year over year to $608 million. International revenues contributed 21.6% to total revenues. The figure increased 11.35% year over year to $157 million.
Okta stock gained 8.19% in the pre-market trading.
Okta ended the quarter with remaining performance obligations (RPO) of $4.719 billion, up 16% year over year, highlighting continued strength in contracted subscription backlog. Current RPO, which captures the portion expected to be recognized over the next 12 months, rose 12% year over year to $2.499 billion.
Customers with more than $100K in Annual Contract Value increased 6% year over year to 5,180. The dollar-based retention rate for the trailing 12 months was 107%, down 1% year over year.
Okta’s Q1 Operating Details
First-quarter fiscal 2026 non-GAAP gross margin decreased 30 basis points (bps) on a year-over-year basis to 82%.
As a percentage of revenues, research and development expenses increased 40 bps year over year to 15.9%. General and administrative expenses decreased 170 bps year over year to 9%. Sales and marketing expenses increased 290 bps year over year to 31.6%.
Non-GAAP operating margin contracted 180 bps year over year to 25% in the reported quarter.
Okta’s Balance Sheet
Okta had $2.589 billion in cash, cash equivalents and short-term investments as of April 30, 2026.
Net cash provided by operating activities was $277 million, or 36% of revenue, while free cash flow was $271 million, or 35% of revenue.
In the first quarter of fiscal 2027, the company also returned capital to shareholders during the quarter, including $248 million of common stock repurchases.
OKTA’s Outlook Calls for Steady Expansion in Fiscal 2027
For the second quarter of fiscal 2027, Okta expects revenues in the range of $790-$794 million, implying 9% year-over-year growth. The company expects non-GAAP diluted net income per share between 95 cents and 97 cents, free cash flow of $155-$165 million and a free cash flow margin of 20%-21%.
For the full year, management raised the framework around steady top-line expansion, guiding revenues in the range of $3.185-$3.205 billion, or 9%-10% growth year over year. Okta also expects non-GAAP diluted net income per share of $3.79-$3.87 and free cash flow of $855-$885 million, while noting an approximately one-percentage-point headwind to total revenue growth tied to accelerating the shift of professional services work to partners.
Shares of Applied Materials have surged 75% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up 9 cents over the past seven days. This indicates a 27.6% year-over-year surge.
Shares of Celestica have gained 19.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 13.6% over the past 30 days. This indicates a year-over-year jump of 67.93%.
Amphenol shares have risen 9.6% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 10.9% over the past 30 days. This indicates a year-over-year increase of 42.51%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Zacks
OKTA Shares Jump on Solid Q1 Earnings Beat, Revenues Increase Y/Y
Key Takeaways
Okta (OKTA - Free Report) posted first-quarter fiscal 2027 earnings of 91 cents per share, up 5.8% year over year, and surpassed the Zacks Consensus Estimate by 6.75%.
Revenues rose 11.2% from the year-ago quarter to $765 million, beating the Zacks Consensus Estimate by 1.82%. The uptick can be attributed to steady subscription momentum, which increased 11% year over year to $750 million, continuing to account for the vast majority of the top line. Professional services and other revenues were $15 million, unchanged from the year-ago quarter, underscoring how product-led growth is driving the quarter’s revenue cadence.
Location-wise, revenues from the United States contributed 83% to total revenues in the fiscal first quarter. The figure increased 11.15% year over year to $608 million. International revenues contributed 21.6% to total revenues. The figure increased 11.35% year over year to $157 million.
Okta stock gained 8.19% in the pre-market trading.
Okta, Inc. Price, Consensus and EPS Surprise
Okta, Inc. price-consensus-eps-surprise-chart | Okta, Inc. Quote
Okta’s Q1 Top-Line Details
Okta ended the quarter with remaining performance obligations (RPO) of $4.719 billion, up 16% year over year, highlighting continued strength in contracted subscription backlog. Current RPO, which captures the portion expected to be recognized over the next 12 months, rose 12% year over year to $2.499 billion.
Customers with more than $100K in Annual Contract Value increased 6% year over year to 5,180. The dollar-based retention rate for the trailing 12 months was 107%, down 1% year over year.
Okta’s Q1 Operating Details
First-quarter fiscal 2026 non-GAAP gross margin decreased 30 basis points (bps) on a year-over-year basis to 82%.
As a percentage of revenues, research and development expenses increased 40 bps year over year to 15.9%. General and administrative expenses decreased 170 bps year over year to 9%. Sales and marketing expenses increased 290 bps year over year to 31.6%.
Non-GAAP operating margin contracted 180 bps year over year to 25% in the reported quarter.
Okta’s Balance Sheet
Okta had $2.589 billion in cash, cash equivalents and short-term investments as of April 30, 2026.
Net cash provided by operating activities was $277 million, or 36% of revenue, while free cash flow was $271 million, or 35% of revenue.
In the first quarter of fiscal 2027, the company also returned capital to shareholders during the quarter, including $248 million of common stock repurchases.
OKTA’s Outlook Calls for Steady Expansion in Fiscal 2027
For the second quarter of fiscal 2027, Okta expects revenues in the range of $790-$794 million, implying 9% year-over-year growth. The company expects non-GAAP diluted net income per share between 95 cents and 97 cents, free cash flow of $155-$165 million and a free cash flow margin of 20%-21%.
For the full year, management raised the framework around steady top-line expansion, guiding revenues in the range of $3.185-$3.205 billion, or 9%-10% growth year over year. Okta also expects non-GAAP diluted net income per share of $3.79-$3.87 and free cash flow of $855-$885 million, while noting an approximately one-percentage-point headwind to total revenue growth tied to accelerating the shift of professional services work to partners.
OKTA’s Zacks Rank & Stocks to Consider
Okta currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Applied Materials have surged 75% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up 9 cents over the past seven days. This indicates a 27.6% year-over-year surge.
Shares of Celestica have gained 19.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 13.6% over the past 30 days. This indicates a year-over-year jump of 67.93%.
Amphenol shares have risen 9.6% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 10.9% over the past 30 days. This indicates a year-over-year increase of 42.51%.