Okta 2026 Q3 Earnings Record High Net Income Surges 168.8%

Okta (OKTA) reported fiscal 2026 Q3 earnings on Dec 2, 2025, with results exceeding expectations and an upbeat outlook. The company raised full-year guidance, driven by strong subscription growth and new product traction.

Revenue

Okta’s total revenue rose 11.6% year-over-year to $742 million, fueled by robust demand for its identity management solutions. Subscription revenue, the company’s core segment, climbed 11% to $724 million, reflecting sustained enterprise adoption. Professional services and other revenue added $18 million, rounding out the total.

Earnings/Net Income

Earnings surged with a 166.7% EPS increase to $0.24, reflecting strong profitability growth. Net income reached $43 million, a 168.8% year-over-year jump, marking a 10-year high for the quarter.

Post-Earnings Price Action Review

The strategy of buying Okta shares post-earnings and holding for 30 days underperformed the market over three years, returning -21.75% versus 73.97% for the benchmark. While the maximum drawdown was 0.00%, the strategy failed to capture gains, resulting in a -8.56% CAGR.

CEO Commentary

CEO Todd McKinnon highlighted strength in large customer upsells and innovations like Okta Identity Governance. He emphasized strategic investments in AI security, calling it a “business imperative” and a growth catalyst.

Guidance

Okta projected Q4 revenue of $748–$750 million and FY2026 revenue of $2.906–$2.908 billion, both exceeding analyst estimates. Non-GAAP EPS guidance was raised to $3.43–$3.44 for FY2026.

Additional News

Okta’s recent momentum aligns with broader cybersecurity sector trends. Major M&A activity in the industry, including Palo Alto Networks’ and Google’s acquisitions, highlights growing demand for identity and access management solutions. Additionally, Okta’s focus on AI security—such as its newly launched Auth0 for AI Agents—positions it as a leader in securing next-gen enterprise workflows.

Article Polishing

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