Key Highlights
- Okta delivered $765 million in Q1 FY2027 revenue, representing an 11% year-over-year increase and surpassing analyst projections of $752 million.
- Earnings per share (adjusted) reached $0.91, exceeding Wall Street’s consensus forecast of $0.85.
- Shares jumped 30% on May 29 in response to the earnings report and have climbed 63% since being highlighted as an investment opportunity in February.
- Full-year FY2027 revenue growth outlook was upgraded to 9–10%, with adjusted EPS guidance now at $3.79–$3.87.
- UBS analyst Roger Boyd increased his price target to $130 from $115, highlighting the artificial intelligence identity management market potential.
The identity management platform provider reported first-quarter fiscal 2027 revenue of $765 million, marking an 11% increase compared to the same period last year and exceeding analyst expectations of $752 million.
Adjusted earnings per share landed at $0.91, comfortably above the Street’s $0.85 consensus. The impressive results triggered a 30% single-day gain on May 29, following the earnings announcement. Since early February, OKTA shares have appreciated 63%, with approximately 81% gains recorded over the last month alone.
The wider software industry has experienced a rebound as well. The iShares Expanded Tech-Software Sector ETF (IGV) has risen 41% from its 2026 trough, though Okta’s performance has significantly exceeded this benchmark.
During the earnings conference call, artificial intelligence agents emerged as the dominant narrative. Chief Executive Todd McKinnon characterized the early-stage demand for Okta for AI Agents and Auth0 for AI Agents as “bigger than anything we’ve ever seen.”
Chief Financial Officer Brett Tighe noted that multi-cloud AI agent contracts secured to date have exceeded the company’s traditional average transaction size. Corporate clients are prioritizing AI security as a critical expenditure.
Ian Murray, who serves as president and portfolio manager at Ten Peak Capital, highlighted McKinnon’s enthusiasm regarding the expanding pipeline for AI agent identity management solutions. Murray anticipates Okta’s growth trajectory will accelerate during the latter half of 2026 as enterprise customers begin implementing these new capabilities.
Updated Financial Outlook
Okta increased its full-year FY2027 revenue growth projection to a range of 9% to 10%, up from the previous 9% target. The company also elevated its adjusted EPS guidance to $3.79–$3.87, compared to the earlier midpoint of $3.78.
During the past 60 days, two full-year earnings estimates have been revised upward while none have been lowered. The consensus full-year EPS estimate has moved from $3.79 to $3.80 over this period.
Wall Street Perspective
UBS analyst Roger Boyd maintained his buy recommendation while lifting his price target from $115 to $130. The revised target reflects a 24x multiple applied to Okta’s projected FY2027 free cash flow.
Boyd suggested that market participants may be underappreciating the extent to which Okta has broadened its platform to encompass comprehensive identity solutions. The company currently holds a Zacks Rank of #2 (Buy) alongside a Momentum Style Score of A.
Over the trailing week, OKTA has gained 33.64%, compared to a 6.76% advance for the Zacks Security industry. For the past quarter, the stock has surged 75.37%, substantially outpacing the S&P 500’s 10.8% increase during the same timeframe.
Okta Identity Governance has evolved from a cross-sell supplementary offering into a standalone solution, now attracting new clients seeking to transition away from legacy governance platforms.
The 20-day average trading volume for OKTA currently stands at 4,231,550 shares.
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