Companies /Technology

Okta Inc - Class A

NASDAQ: OKTA Software - Infrastructure
$169.72
▼ $3.19 (−1.85%) today
Markets open · 2:34pm ET

Q1 2026 Earnings

Reported May 27, 2025, 4:06pm ET · SEC source
$0.86
Beat +11.49%
EPS · est. $0.77
$688.0M
Beat +1.16%
Revenue · est. $680.1M
−10.1%
Trailing market
OKTA vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%0+6%+12%May 27May 28report 4:06pm ETearnings+0.9%−4.5%
−6%0+6%+12%May 27May 28earnings+0.9%−4.5%
OKTA −4.5%S&P 500 +0.9%
−6%0+6%+12%May 27May 28report 4:06pm ETearnings+1.4%−4.5%
−6%0+6%+12%May 27May 28earnings+1.4%−4.5%
OKTA −4.5%NASDAQ +1.4%
−7%0+7%+14%May 27Jun 4report 4:06pm ETearnings+0.7%−5.1%
−7%0+7%+14%May 27Jun 4earnings+0.7%−5.1%
OKTA −5.1%S&P 500 +0.7%
−7%0+7%+14%May 27Jun 4report 4:06pm ETearnings+1.4%−5.1%
−7%0+7%+14%May 27Jun 4earnings+1.4%−5.1%
OKTA −5.1%NASDAQ +1.4%
−16.16%
Day of report
+1.34%
Next session
+0.36%
One week
−4.99%
30 days

S&P 500 over the same 30 days: +5.12%.

Did OKTA Beat Earnings? Q1 2026 Results

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.

Key Takeaways
  • 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

Forward Guidance & Outlook

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

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$200.0M$400.0M$600.0M$617.0M$688.0MRevenue$469.0M$533.0MGross Profit$13.8M$39.0MOperating Income$17.5M$62.0MNet Income
$0$200.0M$400.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

OKTA Revenue by Segment

Subscription$673.0M+12.0%
Professional services and other$15.0M

Figures from SEC filings and company reports. Not investment advice.