Okta (OKTA) Q1 2026 Earnings
How Did OKTA Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +5.12%.
Did OKTA Beat Earnings? Q1 2026 Results
Yes. Okta reported Q1 2026 earnings of $0.86 a share on May 27, 2025, beating the $0.77 consensus estimate by 11.5%. Revenue was $688.0M against a $680.1M estimate.
Okta posted a convincing beat across the board in its fiscal first quarter of 2026, with earnings per share of $0.86 clearing the $0.77 consensus estimate by 11.49% and revenue of $688 million coming in ahead of expectations by 1.16% on 11.5% year-over-year growth. The headline driver behind the strong bottom line was a dramatic improvement in operating discipline — total operating expenses actually fell to $494 million from $516 million a year ago even as revenue grew, helping non-GAAP operating margin expand to 27% from 22% and pushing the company to GAAP profitability of $62 million in net income versus a $40 million loss in the prior-year period. RPO climbed 21% year-over-year to $4.08 billion, offering meaningful visibility into future revenue. For those tracking <a href="https://247wallst.com/investing/2026/01/22/oktas-profits-are-up-but-its-credibility-still-hasnt-recovered/">how far Okta has come</a> since its post-breach credibility challenges, the profitability milestone carries weight. Looking ahead, Okta guided Q2 revenue to $710–$712 million and full-year revenue to $2.85–$2.86 billion, with management noting macroeconomic uncertainty as a factor in its measured outlook.
- Subscription revenue grew 12% year-over-year
- Record GAAP and non-GAAP operating profitability
- RPO grew 21% year-over-year to $4.084 billion, indicating strong future revenue visibility
- Current RPO grew 14% year-over-year to $2.227 billion
- Non-GAAP operating margin expanded to 27% from 22% year-over-year
- Stock-based compensation expense decreased from $151 million to $128 million year-over-year
- Free cash flow of $238 million representing 35% margin
“Okta had a solid start to FY26 highlighted by record operating profit and another quarter of robust free cash flow.”
Okta CEO, on the earnings call
What Was Okta's Outlook in Q1 2026?
For Q2 FY26, Okta expects total revenue of $710-$712 million (10% YoY growth), cRPO of $2.200-$2.205 billion (10-11% growth), non-GAAP operating income of $183-$185 million (26% margin), non-GAAP diluted EPS of $0.83-$0.84, and non-GAAP free cash flow margin of approximately 19%. For full-year FY26, the company expects total revenue of $2.850-$2.860 billion (9-10% growth), non-GAAP operating income of $710-$720 million (25% margin), non-GAAP diluted EPS of $3.23-$3.28, and non-GAAP free cash flow margin of approximately 27%. Management is taking a prudent approach to guidance, factoring in the go-to-market specialization rollout and potential risks from the uncertain economic environment.
OKTA YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $688.0M | $617.0M | +11.5% |
| Gross Profit | $533.0M | $469.0M | +13.7% |
| Operating Income | $39.0M | $13.8M | +183.0% |
| Net Income | $62.0M | $17.5M | +255.0% |
OKTA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.