Okta Inc - Class A
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.16%.
Did OKTA Beat Earnings? Q3 2026 Results
Okta delivered a strong third quarter of fiscal 2026, beating on both the top and bottom lines as improving profitability and disciplined expense management drove results ahead of Wall Street expectations. The identity security company posted revenue of $742 million, up 11.6% year-over-year, while non-GAAP diluted EPS of $0.82 cleared the $0.7566 consensus estimate by 8.38% — a meaningful beat that sent shares up nearly 5% in after-hours trading. The outperformance was underpinned by subscription revenue of $724 million and a notable swing to GAAP operating profitability, with operating income reaching $23 million compared to a $16 million loss in the year-ago quarter. For investors still weighing <a href="https://247wallst.com/investing/2026/01/22/oktas-profits-are-up-but-its-credibility-still-hasnt-recovered/">Okta's longer-term recovery story</a>, the quarter offered tangible evidence of operating leverage. Remaining performance obligations grew 17% to $4.29 billion, reinforcing forward visibility, while Q4 revenue guidance of $748–$750 million and full-year EPS guidance of $3.43–$3.44 signaled continued, if measured, momentum heading into fiscal year-end.
- Continued strength with large customers
- Adoption of new products like Okta Identity Governance
- Strong cash flow generation with 29% operating cash flow margin
- Non-GAAP operating margin expansion to 24% from 21% YoY
- RPO grew 17% YoY to $4.292 billion, indicating strong forward revenue visibility
- cRPO grew 13% YoY to $2.328 billion
“We delivered another quarter of solid results highlighted by continued strength with large customers, adoption of new products like Okta Identity Governance, and strong cash flow.”
Okta CEO, on the earnings call
Forward Guidance & Outlook
For Q4 FY26, Okta expects total revenue of $748–$750 million (10% YoY growth), current RPO of $2.445–$2.450 billion (9% YoY growth), non-GAAP operating income of $189–$191 million (25% margin), non-GAAP diluted EPS of $0.84–$0.85 on ~185 million diluted shares, and non-GAAP free cash flow margin of approximately 31%. For the full year FY26, Okta expects total revenue of $2.906–$2.908 billion (11% YoY growth), non-GAAP operating income of $753–$755 million (26% margin), non-GAAP diluted EPS of $3.43–$3.44, and non-GAAP free cash flow margin of approximately 29%. Management notes a prudent approach to guidance given current market conditions.
OKTA YoY Financials
OKTA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.