Okta (OKTA) could deliver about 2 percentage points of upside to the midpoint of its fiscal Q2 2027 revenue guidance as sales execution improves and demand strengthens across its identity products, Oppenheimer said in a report Tuesday.
The firm cited "above plan" partner checks, better new-customer activity and "healthy" cross-selling and upselling, with Workforce Identity and Customer Identity performing well and "broader platform adoption" of Okta Identity Governance.
Okta for AI Agents is also "building momentum," with a strong pipeline, early revenue and competitive wins, the firm said. Because the product is not expected to contribute meaningfully to fiscal 2027 guidance, stronger "pipeline conversion could create upside," the report said.
The firm expects "modest upside" to Okta's Q2 revenue guidance midpoint of $792 million, which represents 8.8% year-over-year growth, and views current remaining performance obligations and remaining performance obligations as "key metrics" of whether the momentum can be sustained.
Oppenheimer has an outperform rating on Okta raised its price target to $170 from $125.
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