Why? Because the company “failed” to provide a fiscal 2027 update. But what business typically provides its subsequent fiscal year guidance with its Q3 release?
I am downgrading Okta to a 'hold' after its Q3 FY26 earnings, despite beating revenue and earnings estimates. Unimpressive forward guidance and slowing cRPO growth undermine confidence in a near-term revenue reacceleration, despite management's optimism in their product innovation. Okta's growth lags CyberArk, with consensus forecasting high single-digit revenue growth versus CYBR's superior trajectory.
Okta Inc (NASDAQ:OKTA) reported third quarter fiscal 2026 results that exceeded Wall Street expectations across key metrics, including revenue, earnings per share, and forward guidance. The cloud-based identity management service reported revenue of $742 million, up roughly 12% year-over-year and above analyst estimates of around $730 million.
While the top- and bottom-line numbers for Okta (OKTA) give a sense of how the business performed in the quarter ended October 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Okta's Q3 beat on revenue, margins, and FCF, but the stock slipped as rich pre-earnings valuation left no room for merely "good" results. Despite AI product launches and strong partner channel growth, OKTA's business remains low-double-digit growth, with Q4 cRPO guidance decelerating to 9% YoY. My FY2027 sales estimate of $3.17 billion is only ~0.3% above consensus, suggesting limited upside for estimates and continued pressure on Okta's premium sales multiple.
Okta, Inc. (OKTA) Q3 2026 Earnings Call Transcript
Okta (OKTA) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.67 per share a year ago.
Cybersecurity company Okta forecast fourth-quarter revenue above Wall Street estimates on Tuesday, betting on growing demand for its identity and access management solutions.
Okta on Tuesday topped Wall Street third-quarter estimates and issued an upbeat outlook as customers adopt identity management solutions. For the current quarter, the cybersecurity company expects revenues between $748 million and $750 million and adjusted earnings of 84 cents to 85 cents per share, both ahead of analyst expectations.
Okta, Inc. remains central to cybersecurity, providing cloud-based identity access tools amid rising infrastructure attacks. Despite the sector's critical importance, OKTA shares have declined ~67% over five years, sharply underperforming both SPY and iShares Expanded Tech-Software Sector ETF. Recent quarters showed 12–14% YoY revenue growth, but this marks a significant deceleration versus OKTA's historical high-growth profile.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Get a deeper insight into the potential performance of Okta (OKTA) for the quarter ended October 2025 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.