Okta Raises FY25 EPS and FY26 Revenue Views, Boosts Consensus Estimates

Okta has raised its FY25 EPS view to $3.33-$3.38 from $3.23-$3.28 and FY26 revenue view to $2.875B-$2.885B from $2.85B-$2.86B, exceeding the consensus estimate of $3.29 and $2.86B, respectively.

Okta Inc. (OKTA) reported its fiscal Q2 revenue grew 13% year-over-year (YoY), exceeding analyst expectations. The company's GAAP net income for Q2 rose to $67 million from $29 million in the same period last year. Additionally, Okta announced an acquisition of Axiom Security, which is expected to have an immaterial impact on its financial guidance.

Okta's Q3 revenue is expected to be between $728 million and $730 million, representing a 9% to 10% YoY increase. The company forecasts Q3 non-GAAP operating income of $160 million to $162 million and non-GAAP EPS of $0.74 to $0.75. For the full fiscal year 2026 (FY26), Okta anticipates revenue of $2.875 billion to $2.885 billion, non-GAAP operating income of $730 million to $740 million, and non-GAAP EPS of $3.33 to $3.38. The company also expects a non-GAAP free cash flow margin of 28% for FY26.

The primary drivers of Okta's Q2 revenue growth were strong adoption of new products, particularly in the public sector and Auth0 platform, and continued strength in public sector engagements. The company's Q2 revenue beat the consensus estimate by $728 million, with actual revenue of $711.80 million, compared to the consensus estimate of $711.80 million. The company's EPS for Q2 was $0.37, and net income was $67 million.

The current analyst coverage for Okta Inc. is positive, with an average rating of "buy" and 28 "strong buy" or "buy" recommendations, 16 "hold" recommendations, and 2 "sell" or "strong sell" recommendations. The average consensus recommendation for the IT services & consulting peer group is also "buy." Wall Street's median 12-month price target for Okta Inc. is $120.00, about 23.9% above its August 25 closing price of $91.35. The stock recently traded at 27 times the next 12-month earnings versus a P/E of 34 three months ago.

Okta has raised its FY25 EPS view to $3.33-$3.38 from $3.23-$3.28 and FY26 revenue view to $2.875 billion to $2.885 billion from $2.85 billion to $2.86 billion, exceeding the consensus estimate of $3.29 and $2.86 billion, respectively.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX4DFC67:0-cybersecurity-firm-okta-q2-revenue-beats-estimates/