Identity management firm Okta's Q3 revenue beats expectations

Okta

02/12/2025 21:11

Overview

Okta Q3 fiscal 2026 revenue grows 12% yr/yr, beating analyst expectations

GAAP net income for Q3 fiscal 2026 was $43 mln, with EPS of $0.24

Company reports strong cash flow with $218 mln operating cash flow in Q3

Outlook

Okta expects Q4 revenue between $748 mln and $750 mln, up 10% year-over-year

Company forecasts full-year revenue of $2.906 bln to $2.908 bln, up 11% year-over-year

Okta anticipates Q4 non-GAAP operating income of $189 mln to $191 mln

Result Drivers

LARGE CUSTOMER SEGMENTS - Okta cites continued strength with large customers as a driver for Q3 results

NEW PRODUCT ADOPTION - Adoption of new products like Okta Identity Governance contributed to Q3 growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$742 mln
$730.36 mln (39 Analysts)
Q3 EPS
$0.24
Q3 Net Income
$43 mln
Q3 Subscription Revenue
$724 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 30 "strong buy" or "buy", 13 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Okta Inc is $120.00, about 32.8% above its December 1 closing price of $80.64

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nBw3wvXsma

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)