Okta, a prominent software company, is set to announce its Fiscal Q1 2026 earnings after market hours on Tuesday, May 27, 2025. Analysts predict that the company’s earnings per share (EPS) will reach $0.77, with estimates ranging from $0.72 to $0.84. Revenue is anticipated to be approximately $680.28 million. In the same quarter last year, Okta reported an EPS of $0.65 and revenue of $617 million, both surpassing expectations.
Investors will be paying close attention to metrics such as remaining performance obligations (RPO) and current RPO (cRPO), both of which saw year-over-year growth of 25% and 15%, respectively, in the last quarter of FY 2025. The company’s recent success is largely attributed to its commitment to identity governance and access management, which has led to over 20% of bookings in Q4 being related to new products.
Moreover, Okta has made significant headway through its partnership with AWS Marketplace, achieving over $1 billion in total contract value, with revenue from this channel increasing by more than 80% in FY 2025. Improvements in the interconnectivity of Okta’s products are expected to create more upselling opportunities, thereby enhancing their market position.
Investors will also be keenly observing Okta’s performance with large enterprise clients, particularly in light of potential constraints from slower IT spending and shifts in security budgets. As Okta’s stock currently trades well below its previous highs, positive earnings results—especially better-than-expected profit margins or subscription growth—could help boost the stock price. Conversely, guidance falling short of expectations might heighten concerns regarding the company’s growth trajectory.
On the options market, traders are forecasting a potential 12% price movement in either direction following the earnings release, indicating a $124 strike price with call options at $7.50 and put options at $7.46. Analysts provide a consensus rating of Moderate Buy on Okta stock, derived from 21 Buys, 14 Holds, and one Sell, with an average price target suggesting a modest upside potential of 0.8% to $124.65 per share.
In summary, while Okta faces challenges in the current economic climate, its strategic focus on identity management and strong growth in partnership revenues might present an opportunity for recovery and growth in the upcoming earnings report.