Okta 2026 Q3 Earnings Beats Expectations with 168.8% Net Income Growth

Okta (OKTA) reported fiscal 2026 Q3 earnings on Dec 2, 2025, exceeding revenue and EPS estimates. The company raised full-year guidance and highlighted strong performance in large customer adoption and AI-focused products.

Revenue

Okta’s total revenue rose 11.6% year-over-year to $742 million, driven by robust demand for its identity management solutions. Subscription revenue, the company’s core segment, grew to $724 million, while professional services and other revenue added $18 million.

Earnings/Net Income

Earnings surged with a 166.7% year-over-year increase in EPS to $0.24, and net income hit a 10-year high of $43 million, up 168.8% from $16 million. The company’s profitability strengthened, reflecting disciplined cost management and operational efficiency.

Price Action

Okta’s stock edged up 0.24% in the latest trading day, gained 3.44% for the week, but declined 6.87% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Okta shares post-earnings and selling 30 days later underperformed the market over three years, yielding -21.75% versus 73.97% for the benchmark. While the strategy avoided significant losses (0.00% maximum drawdown), it failed to capture gains, resulting in a CAGR of -8.56%.

CEO Commentary

CEO Todd McKinnon emphasized “continued strength with large customers” and adoption of AI-focused products like Auth0 for AI Agents. He expressed confidence in Okta’s identity platform as a critical tool for securing AI-driven workflows.

Guidance

Okta raised Q4 2026 revenue guidance to $748–750 million (10% YoY growth) and full-year revenue to $2.906–2.908 billion (11% YoY growth). Non-GAAP operating income and EPS guidance also increased, reflecting improved margins and cash flow.

Additional News

Okta’s Q3 results surpassed expectations, with non-GAAP EPS of $0.82 (beating by $0.06) and revenue of $742 million (beating by $11.56 million). The company raised full-year guidance, citing strong subscription growth and AI adoption. CEO Todd McKinnon highlighted Auth0 for AI Agents as a strategic differentiator, positioning Okta to capitalize on the AI transformation in identity security.