Okta shares surge after first-quarter earnings beat, raised guidance

Proactive

Fri, May 29, 2026 astatine 9:42 AM CDT 2 min read

Okta Inc (NASDAQ:OKTA) shares jumped 24% connected Friday aft the individuality information institution reported first-quarter results that topped Wall Street estimates and raised its full-year outlook, with analysts pointing to accelerating request and an emerging artificial quality tailwind.

The San Francisco-based institution posted gross of $765 cardinal for its fiscal archetypal 4th of 2027, up 11% year-over-year and up of expert estimates of $752 million.

Adjusted net per stock came successful astatine $0.91, beating the statement estimation of $0.85. Subscription gross roseate 11% to $750 million, portion escaped currency travel reached $271 million, representing a 35% margin.

Current remaining show obligations, a intimately watched indicator of near-term demand, grew 12% year-over-year to $2.5 billion, beating the midpoint of guidance by astir 2 percent points. Net gross retention accelerated to 107% from 106% successful the anterior quarter.

Okta raised its full-year fiscal 2027 gross guidance to a midpoint of $3.195 billion, up astir $15 cardinal from anterior guidance and modestly supra the statement estimation of $3.186 billion. The institution projected full-year adjusted EPS of $3.79 to $3.87 and a non-GAAP escaped currency travel borderline of 27% to 28%.

For the 2nd quarter, Okta guided gross of $790 cardinal to $794 cardinal and adjusted EPS of $0.95 to $0.97.

Jefferies analysts called the second-quarter cRPO guidance a bullish awesome and describing the valuation arsenic charismatic astatine 4.8 times estimated calendar 2027 revenue. The slope cited broad-based spot successful caller products, which represented astir 25% of first-quarter bookings, on with improved transmission spouse contributions pursuing Okta's strategical determination to trim its accent connected nonrecreational services.

Jefferies noted that if Okta follows its humanities signifier of beating guidance, second-quarter cRPO maturation could scope astir 13% year-over-year, marking a 2nd consecutive 4th of acceleration. The slope added that the uptick does not look to beryllium driven by agentic information products, characterizing that class arsenic a much apt tailwind successful fiscal 2028.