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Research Alert: Okta Delivers Strong Beats And Raises Outlook Amid Agentic Drive Demand

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

OKTA delivered solid Q1 FY 27 results, with non-GAAP EPS of $0.91 beating consensus by $0.06 and total revenue of $765M growing 11% Y/Y, exceeding expectations by $13.2M. Subscription revenue of $750M also grew 11% Y/Y, while key metrics showed healthy momentum as cRPO grew 12% Y/Y to $2.499B with sequential acceleration of 40 bps, and total RPO increased 16% Y/Y to $4.719B. We believe go-to-market specialization initiatives are driving tangible results, including continued strength with large enterprises and improved sales productivity. Management raised FY 27 guidance, lifting full-year revenue projections to $3.185-$3.205B and non-GAAP EPS to $3.79-$3.87, both above Street estimates. We think OKTA's outlook reflects strengthening demand as identity security solutions become critical protection capabilities. The company demonstrated strong cash generation with operating cash flow of $277M (36% margin) and free cash flow of $271M (35% margin).

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