OKTA

Okta reported Q1 earnings that topped consensus estimates while the cybersecurity firm's guidance for a key metric came in above views.

The company reported better-than-expected earnings but analysts are focused on the AI product pipeline.

Okta OKTA 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-eps-surprise-chart | Okta, Inc. Quote 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. 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 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. For the second quarter of fiscal 20...

June S&P 500 E-Mini futures (ESM26) are trending up +0.18% this morning as investors became more confident that the U.S. and Iran are nearing a deal. The U.S. and Iran have reportedly reached a tentative deal to extend the ceasefire by 60 days, which would include the reciprocal reopening of the Strait of Hormuz during the first 30 days. It would mark the first phase of a multistage framework, which the U.S. hopes will result in Iran scaling back its nuclear program for decades. “We perhaps have the makings of a deal here,” Treasury Secretary Scott Bessent said on Thursday. A deal is reportedly awaiting approval from U.S. President Donald Trump. The price of WTI crude fell over -1% on Friday. ARM Stock Is Valued for Eternity, But Silicon Has an Expiration Date Ford Stock Is Moving Like Tesla Now. Its Results Can’t Justify the Premium. S&P 500 and Nasdaq 100 Post Record Highs on US-Iran Truce Reports Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! “If a deal is agreed upon, we should see another leg higher in risky assets and lower in rates. Positioning suggests that the rates market should see a greater reaction than equities,” said Mohit Kumar at Jefferies. Sentiment was also supported by some positive corporate news. Dell Technologies (DELL) popped over +37% in pre-market trading after the hardware maker posted upbeat Q1 results and raised its full-year revenue guidance amid surging demand for servers that power AI workloads. Also, Okta (OKTA) climbed more than +7% in pre-market trading after the company reported stronger-than-expected Q1 results and boosted its annual guidance. In yesterday’s trading session, Wall Street’s major indices closed higher, with the S&P 500 and Nasdaq 100 notching new record highs. Chip stocks climbed, with Arm Holdings (ARM) jumping more than +10% and Advanced Micro Devices (AMD) rising over +4%. Also, Snowflake (SNOW) popped over +36% after the data warehousing company reported strong Q1 results, raised its full-year product revenue guidance, and expanded its collaboration with Amazon Web Services. In addition, Agilent Technologies (A) surged more than +16% and was among the top percentage gainers on the S&P 500 after the company posted upbeat FQ2 results and raised its full-year guidance. On th...

Okta (NASDAQ:OKTA) moved sharply higher in pre-market trading on Friday, gaining more than 7% and building on a 4.7% rise in after-hours dealings after the identity and access management specialist delivered stronger-than-expected fiscal first-quarter 2027 results. The company reported revenue of $765 million for the quarter ended April 2026, representing year-on-year growth of 11% and exceeding the $752 million consensus estimate highlighted by Raymond James. Adjusted earnings reached $0.91 per share, comfortably ahead of analyst expectations of $0.85. Subscription revenue rose 11.4% from a year earlier to $750 million, reflecting continued demand for Okta’s identity security solutions. Investors also focused on remaining performance obligations, a key indicator of future revenue. Current remaining performance obligations increased 12% year-on-year to $2.50 billion, slightly ahead of Raymond James’ buyside estimate of $2.49 billion. Total remaining performance obligations climbed 16% to $4.72 billion, while the company’s dollar-based net retention rate improved to 107%, accelerating by 100 basis points from the previous quarter. Okta continued to expand its presence among larger customers during the quarter. The company added 80 new customers with annual contract values exceeding $100,000, bringing the total number of large enterprise clients to 5,180, an increase of 6% compared with the same period last year. According to Raymond James, recently launched products accounted for approximately 25% of first-quarter bookings. Transactions that included at least one newer product generated roughly 40% higher annual contract value than standard deals. The company also delivered strong cash generation, reporting operating cash flow of $277 million and free cash flow of $271 million. Management credited the company’s revised sales strategy and product expansion efforts for the strong performance. “Last year’s go-to-market specialization is driving tangible results, including continued strength with large enterprises and increased sales productivity,” Chief Financial Officer Brett Tighe said. “The success of our new product portfolio, particularly Okta Identity Governance, validates that Okta’s unified identity platform is resonating with customers.” During the earnings call, executives highlighted growing customer interest in artificial intelligence-related identit...

CrowdStrike Holdings CRWD is scheduled to report its first-quarter fiscal 2027 results on June 3, 2026. CrowdStrike anticipates revenues between $1.36 billion and $1.364 billion for the first quarter of fiscal 2027. The Zacks Consensus Estimate for CrowdStrike’s fiscal first-quarter revenues is pegged at $1.36 billion, indicating year-over-year growth of 23.5%. For the fiscal first quarter, the company expects non-GAAP earnings per share between $1.06 and $1.07. The Zacks Consensus Estimate for CrowdStrike’s fiscal first-quarter earnings is pegged at $1.07 per share, implying a year-over-year increase of 46.6%. The consensus mark for earnings has remained unchanged over the past 30 days. Image Source: Zacks Investment Research CrowdStrike’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.7%. CrowdStrike price-eps-surprise | CrowdStrike Quote Our proven model does not conclusively predict an earnings beat for CrowdStrike this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. CrowdStrike has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. CrowdStrike’s first-quarter fiscal 2027 results are likely to benefit from the robust demand for its cybersecurity products, given the increasing number of threat incidents across the globe. As a rising number of employees log into the enterprise's network, the vulnerabilities of cyber breaches lead to a greater need for security. These factors are likely to have spurred the demand for CrowdStrike’s products in the fiscal first quarter. CrowdStrike’s Falcon Flex subscription model is expected to have remained a major growth driver. Annual recurring revenue (ARR) from Flex accounts crossed $1.69 billion, growing more than 120% year over year during the fourth quarter of fiscal 2026, showing strong adoption across enterprise customers. Falcon Flex helps customers adopt new modules without long contract steps, which leads to faster platform usage. This structure is leading to larger deals. During the fourth quarter, CrowdStrike highlighted several Falcon Flex expan...

Okta (OKTA) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.75%. A quarter ago, it was expected that this cloud identity management company would post earnings of $0.85 per share when it actually produced earnings of $0.9, delivering a surprise of +5.88%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Okta, which belongs to the Zacks Security industry, posted revenues of $765 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.82%. This compares to year-ago revenues of $688 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Okta shares have added about 3.5% since the beginning of the year versus the S&P 500's gain of 9.9%. While Okta has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Okta was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be inte...

Image source: The Motley Fool. Thursday, May 28, 2026 at 5 p.m. ET Chief Executive Officer and Cofounder — Todd McKinnon Chief Financial Officer — Brett Tighe President and Chief Operating Officer — Eric Kelleher Vice President, Investor Relations — Dave Gennarelli Todd McKinnon, our chief executive officer and cofounder and Brett Tighe, our chief financial officer. Eric Kelleher, our President and Chief Operating Officer will join the Q&A portion of the meeting. At around the same time the earnings press release hit the wire, we posted supplemental commentary to our IR website. Todd's meeting will include forward looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 2000. Including, but not limited to, statements regarding our financial outlook and market positioning. Forward looking statements involve known and unknown risks and uncertainties. That may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward looking statements. Forward-looking statements represent our management's beliefs and assumptions only as of the date made. Information on factors that could affect our financial results is included in our filings with the SEC from time to time, including the section titled Risk Factors in our previously filed Form 10 ks. In addition, during today's meeting, we will discuss non GAAP financial measures. Though we may not state it explicitly during the meeting, all references to profitability are non GAAP. These non GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. The reconciliation between GAAP and non GAAP financial measures and a discussion of the limitations of using non GAAP measures versus their closest GAAP equivalents are available in our earnings release. May also find detailed information in our supplemental financial materials which include trended financial statements and key metrics posted on our Investor Relations website. In today's meeting, we will quote a number of numeric or growth changes as we discuss our financial performance. And then unless otherwise noted, each such reference represents a year over year comparison. And now I would like to turn the meeting over to Todd McKinnon. Todd? Todd McKinnon: Thanks,...

Okta (OKTA) reported fiscal Q1 non-GAAP net income late Thursday of $0.91 per diluted share, up from

Interested in Okta, Inc.? Here are five stocks we like better. Okta’s AI agent strategy is a major focus, with executives saying customers are highly interested in using Okta to discover, govern and manage AI agents as “first-class identities.” The company said early pipeline interest is strong, but the new AI products are not yet contributing materially to results. Newer products are becoming more important to the business, accounting for about 25% of Q1 bookings, up sharply from a year ago. Okta Identity Governance led the mix, while privileged access is also gaining traction. Okta guided for 9% revenue growth in fiscal Q2 and 9% to 10% growth for the full year fiscal 2027, alongside healthy operating and free cash flow margins. The company also highlighted strong enterprise and partner momentum, plus continued share buybacks and a solid cash position. Okta and CrowdStrike Could Be the Backbone of AI Security Okta (NASDAQ:OKTA) executives said the identity security company began fiscal 2027 with strong first-quarter momentum, citing large enterprise demand, partner engagement and contributions from newer products, while emphasizing artificial intelligence agents as a major emerging opportunity for the business. Chief Executive Officer and Co-Founder Todd McKinnon said Okta’s core business remained durable across both the Okta and Auth0 platforms. He told investors that the company’s AI strategy was the top area of interest among customers and investors, describing AI agents as “the fastest-growing identity in the enterprise, but also the least governed.” → Rocket Lab Keeps Making Headlines and Highs—Here's What's Driving the Latest Move Okta Earnings Beat, But Growth Questions Remain McKinnon said Okta is positioning itself to manage AI agents as “first-class identities” within existing identity management systems. He said enterprises will need to answer three questions: where their agents are, what they can connect to and what they can do. Okta for AI Agents became generally available last month, according to McKinnon. The product is designed to give enterprises a control plane to discover, govern and manage agents. Auth0 for AI Agents is aimed at developers building secure agents into B2B, B2C and internal applications. → Quantum Stocks Just Got a Lifeline—Who Benefits Most? After a Brutal Selloff, Are These 3 SaaS Giants About to Bounce? McKinnon said p...

Okta (OKTA) reported $765 million in revenue for the quarter ended April 2026, representing a year-over-year increase of 11.2%. EPS of $0.91 for the same period compares to $0.86 a year ago. The reported revenue represents a surprise of +1.82% over the Zacks Consensus Estimate of $751.34 million. With the consensus EPS estimate being $0.85, the EPS surprise was +6.75%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Okta performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Current remaining performance obligations (cRPO): $2.5 billion versus the six-analyst average estimate of $2.45 billion. Remaining performance obligations: $4.72 billion versus $4.62 billion estimated by five analysts on average. Total Customers: 20,000 compared to the 20,791 average estimate based on three analysts. Revenue- Subscription: $750 million versus $738.1 million estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a +11.4% change. Revenue- Professional services and other: $15 million versus the 10-analyst average estimate of $13.09 million. The reported number represents a year-over-year change of 0%. View all Key Company Metrics for Okta here>>> Shares of Okta have returned +17.5% over the past month versus the Zacks S&P 500 composite's +5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Okta, Inc. (OKTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Palo Alto Networks, Inc. PANW is scheduled to report its third-quarter fiscal 2026 results on June 2. Palo Alto Networks projects its fiscal third-quarter revenues in the range of $2.941-$2.945 billion, which suggests a year-over-year increase of 28-29%. The Zacks Consensus Estimate is pegged at $2.94 billion, which implies growth of 28.6% from the year-ago reported figure. For the fiscal third quarter, the company expects non-GAAP earnings per share between 78 cents and 80 cents. The consensus mark for PANW’s fiscal third-quarter non-GAAP earnings has remained unchanged at 81 cents per share over the past 30 days, which indicates a 1.3% increase from the year-ago quarter’s earnings. Image Source: Zacks Investment Research Palo Alto Networks’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.8%. Palo Alto Networks, Inc. price-eps-surprise | Palo Alto Networks, Inc. Quote Our proven model does not conclusively predict an earnings beat for Palo Alto Networks this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. Palo Alto Networks has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. Palo Alto Networks’ third-quarter fiscal 2026 performance is likely to have benefited from the robust traction stemming from deal wins, along with continued progress in its platformization strategy. The increased adoption of its AI-powered XSIAM, SASE and software firewall offerings, which enable enterprises to advance zero-trust network security, is expected to have contributed to the growing share of incremental Next-Generation Security (NGS) Annual Recurring Revenues (ARR). Through its platformization strategy, Palo Alto Networks is enabling larger customers to adopt its full security platform, which is helping the company grow faster and secure bigger deals. In the second quarter of fiscal 2026, PANW’s NGS ARR grew 33% year over year to $6.33 billion, where the platformization strategy was a key driver. In the second quarter of fiscal 2026, PANW added about 110 net new platform customers. The total number of p...