Okta's Trading Volume Plummets to $10.30 Billion Despite Record Revenue and Profitability

On May 29, 2025, Okta's trading volume reached $10.30 billion, marking a 66.95% decrease from the previous day. The company's stock price rose by 1.34%.

Okta's shares experienced a significant decline following the release of its first-quarter fiscal 2026 results. The company reported a 12% year-over-year increase in revenue, reaching $688 million, with a substantial portion of this growth attributed to increased subscription revenue. Additionally, Okta posted a record GAAP operating income of $39 million, a notable improvement from the GAAP operating loss of $47 million in the same period last year.

Despite the positive financial performance, Okta's stock price dropped by 16.16% on Wednesday, closing at $105.22. This decline was attributed to investor concerns over the company's guidance for the second quarter, which was perceived as disappointing by some analysts. The median price target for Okta remains at $128, with most analysts maintaining a buy rating on the stock.

Analysts at DA Davidson lowered their price target for Okta to $140 from $145, while Stifel raised its price target to $130 from $120. Both firms reiterated their buy ratings on the stock. The adjustments in price targets reflect the mixed reactions to Okta's earnings report, with some analysts highlighting the company's strong revenue growth and improved profitability, while others expressed concerns over the guidance for the upcoming quarter.