Okta's Shares Surge 48% YTD; Strong Growth Prospects Highlighted

Okta's shares have surged 48.2% YTD, driven by its innovative AI-powered solutions and a growing customer base. The company expects significant revenue growth in FY26, demonstrating solid market prospects for investors.

Date: 27-03-2025

AI Rating: 8

Earnings Per Share (EPS)
For fiscal 2026, Okta anticipates non-GAAP earnings between $3.15 and $3.20 per share, indicating growth compared to fiscal 2025. For the first quarter of fiscal 2026, the expected EPS is between 76 cents and 77 cents, also reflecting year-over-year growth.

Revenue Growth
Okta expects revenues for fiscal 2026 to be between $2.85 billion and $2.86 billion, representing a growth rate of 9-10% compared to fiscal 2025. For Q1 of fiscal 2026, anticipated revenue growth is about 10% year-over-year, pointing to ongoing strong demand for its services.

Free Cash Flow (FCF)
Okta has projected a free cash flow margin of 26% for fiscal 2026, which is indicative of its efficient cash generation capabilities. This high free cash flow margin is likely to positively influence investor sentiment and stock performance.

Overall Assessment
The report indicates a robust outlook for Okta with significant revenue and earnings growth estimates, coupled with strong demand for its innovative identity solutions. The company’s performance has been buoyed by its ability to add high-value customers and maintain a strong competitive position against major players such as Microsoft and IBM. The upward trend in earnings estimates suggests that analysts are optimistic about Okta’s future performance, which could translate to positive movements in stock prices. Moreover, the substantial appreciation in share price year-to-date reflects strong investor confidence in the company's growth trajectory.

Stocks: OKTA MSFT IBM CYBR