Okta (OKTA) Stock Forecast & Price Target

Okta reported a 13% year-over-year revenue growth, totaling $682 million, which surpassed both management's guidance and consensus expectations, highlighting strong financial performance. The company's commitment to future growth is evident with its calculated committed remaining performance obligations (cRPO), which experienced a 15% increase, reflecting a robust customer base that has shown significant expansion, specifically in the OIG segment with a roughly 30% increase in customers. Additionally, Okta has revised its FY26 revenue growth outlook upward from 7% to 9%-10%, driven by improved execution, a stabilizing macroeconomic environment, and upcoming product releases, further strengthening its positive growth trajectory.

Okta's recent financial performance reveals potential challenges, particularly with Interest and Other Income falling short of expectations at $23 million compared to the forecast of $26 million. While the firm reported a strong Non-GAAP EPS of $0.78, exceeding both guidance and analyst estimates, concerns remain regarding volatility in quarterly business deal closures, which could hinder future revenue stability. Additionally, Okta's reliance on large enterprises that may favor on-premise solutions in a potentially slowing economic environment raises risks, as does the possibility of integration issues and reputational damage from high-profile security incidents.