Okta (OKTA) Stock Forecast & Price Target

Okta demonstrated robust financial performance, with a 13% year-over-year revenue growth reaching $682 million, surpassing both management’s guidance and consensus forecasts. The company's customer growth, particularly in its OIG segment, increased approximately 30% half-over-half, indicating strong demand for its identity and access management services. Additionally, the significant rise in current remaining performance obligations (cRPO) by 15% and the upward revision of FY26 revenue growth expectations from 7% to 9%-10% reflect improving operational execution and positive market conditions.

Okta's recent financial performance reflects concerns that could negatively impact the company's outlook, particularly with Interest and Other Income falling short of expectations at $23 million compared to the forecasted $26 million. The firm's dependence on subscription-based sales from large enterprises, which may still favor on-premise solutions, raises the risk of declining revenues, especially in a potentially slowing economic environment. Additionally, issues related to integration and sales force attrition could hinder operational efficiency, while reputational risks tied to high-profile customer security breaches further compound the uncertainties surrounding Okta's market position.