Latest news with #Okta
Yahoo
a day ago
- Business
- Yahoo
Why Okta, Inc. (OKTA) Went Down On Wednesday
We recently published a list of . In this article, we are going to take a look at where Okta, Inc. (NASDAQ:OKTA) stands against other worst-performing stocks. Okta Inc. declined by 16.16 percent on Wednesday to end at $105.22 apiece as investors soured on the company's weak outlook guidance for the rest of the year. In a statement, Okta, Inc. (NASDAQ:OKTA) said it is now 'factoring in potential risks related to the uncertain economic environment' for the remainder of fiscal year 2026. In the first quarter, Okta, Inc. (NASDAQ:OKTA) swung to a net income of $62 million from a $40 million net loss in the same period last year. Revenues were higher by 11.5 percent to $688 million from $617 million year-on-year. A mobile application developer programming on a tablet, illustrating the power of the company's adaptive multi-factor authentication. For the second quarter, the company expects revenues to grow by 10 percent to a range of $710 million to $712 million, as well as revenues of $2.85 billion to $2.86 billion for the full fiscal year of 2026. 'The world's biggest organizations continue to turn to Okta to solve identity security across their workforces, customers, and AI use cases. We remain focused on driving profitable growth, accelerating innovation, and delivering the only modern, unified identity security platform for our customers,' said Okta, Inc. (NASDAQ:OKTA) CEO Todd McKinnon. Overall, OKTA ranks 2nd on our list of worst-performing stocks. While we acknowledge the potential of OKTA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OKTA and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Stifel Raises Okta Price Target to $130 Following Strong Q1 Performance
On May 28, Stifel bumped up its price target for Okta, Inc. (NASDAQ:OKTA) to $130 from $120. The firm also reiterated a Buy rating on the shares. This adjustment comes hot on the heels of Okta's Q1 2026 results, which exceeded both company guidance and analyst expectations. A computer programmer working on a holographic digital twin technology software solution. Okta's (NASDAQ:OKTA) Q1 revenue jumped by 12% year-over-year to $688 million, with the largest share of the growth emanating from increased subscription revenue. The company posted a record GAAP operating income of $39 million, compared to a GAAP operating loss of $47 million in Q1 2025. According to management, the solid start to FY26 is thanks to the world's biggest organizations turning to the company to 'solve identity security across their workforces, customers, and AI use cases.' Stifel analysts also noted this fact as one of many positive aspects in Okta's earnings report. The others include early signs of successful go-to-market strategy changes, increased traction with Auth0 and new logos, and continued momentum across newer product offerings. Okta, Inc. is the leading independent identity management company. It provides secure, cloud-based solutions to help organizations control who can access their apps and data. Its key products include tools for Single Sign-On (SSO), Multi-Factor Authentication (MFA), and user lifecycle management. While we acknowledge the potential of Okta, Inc. (NASDAQ:OKTA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OKTA and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Okta Declines 16% Post Q1 Earnings: Buy, Sell or Hold the Stock?
Okta OKTA shares dropped 16.16% on Wednesday to close at $105.22 following first-quarter fiscal 2026 results on Tuesday. Although the company reported impressive earnings and revenue growth, the decline in shares can be attributed to slowing top-line growth expectations for the fiscal second quarter as well as fiscal 2026. Okta expects second-quarter fiscal 2026 revenues between $710 million and $712 million, indicating 10% year-over-year growth (11.5% year-over-year growth in first-quarter fiscal 2026). The current portion of the company's remaining performance obligations (RPOs) is expected in the 10-11% range. Okta anticipates non-GAAP earnings between 83 cents and 84 cents per fiscal 2026, OKTA still expects revenues between $2.85 billion and $2.86 billion, indicating 9-10% growth from the figure reported in fiscal 2025. Uncertainty in the federal business, along with challenging macroeconomic conditions, are headwinds for the company. However, Okta expects fiscal 2026 non-GAAP earnings between $3.23 and $3.28 per share, up from previous guidance between $3.15 and $3.20 per share. Year to date, Okta shares returned 33.5%, outperforming the broader Zacks Computer & Technology and close peers, including Microsoft MSFT, International Business Machines IBM and CyberArk CYBR. Shares of International Business Machines, CyberArk and Microsoft returned 18.4%, 14.5% and 8.5%, respectively. Image Source: Zacks Investment Research For second-quarter fiscal 2026, the Zacks Consensus Estimate for OKTA's earnings has been steady at 79 cents per share over the past 30 days. The earnings figure suggests 9.72% year-over-year growth. Okta, Inc. price-consensus-chart | Okta, Inc. Quote For fiscal 2026, the Zacks Consensus Estimate for Okta's earnings has been steady at $3.19 per share over the past 30 days. The earnings figure suggests 13.52% growth over the figure reported in fiscal earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 13.53%. Okta benefits from strong demand for its new products, including Identity Governance, Privileged Access, Device Access, Fine Grained Authorization, Identity Security Posture Management, and Identity Threat Protection with Okta AI. Okta's Identity Security Posture Management and Privileged Access solutions are helping enterprises tackle non-human identities that comprise service accounts, shared accounts, machines and tokens. OKTA's innovative portfolio is helping the company win clients, driving top-line growth. It exited first-quarter fiscal 2026 with roughly 20,000 customers and $4.084 billion in RPOs, reflecting strong growth prospects for subscription revenues. Customers with more than $100 thousand in Annual Contract Value increased by 70 sequentially to 4,870. Okta's offerings include Okta AI, a suite of AI-powered capabilities embedded across several products, which empowers organizations to harness AI to build better experiences and protect against cyberattacks. Okta Platform and Auth0 Platform are compatible with public clouds, on-premises infrastructures and hybrid clouds. The Auth0 platform comprises the Auth0 Platform, Fine Grain Authorization, Highly Regulated Identity and Self Service. The combined governance portfolio of Okta Identity Governance, Lifecycle Management, and Workflows has surged 400% over the past three years to nearly $40 billion at the end of the fiscal first quarter. Okta is benefiting from a rich partner base that includes the likes of Amazon Web Services, CrowdStrike, Google, LexisNexis Risk Solutions, Microsoft, Netskope, Palo Alto Networks, Plaid, Proofpoint, Salesforce, ServiceNow, VMware, Workday, Yubico and Zscaler. Okta shares are overvalued, as suggested by the Value Score of F. In terms of forward Price/Cash Flow, OKTA is trading at 24.59X compared with the broader sector's 19.8X, suggesting a premium valuation. Image Source: Zacks Investment Research The stock is currently trading below the 50-day and 200-day moving averages, indicating a bearish trend. Image Source: Zacks Investment Research Despite having an innovative portfolio and expanding clientele OKTA suffers from challenging macroeconomic condition and a stretched valuation that makes the stock risky in the near currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report Okta, Inc. (OKTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Stifel Raises Okta Price Target to $130 Following Strong Q1 Performance
On May 28, Stifel bumped up its price target for Okta, Inc. (NASDAQ:OKTA) to $130 from $120. The firm also reiterated a Buy rating on the shares. This adjustment comes hot on the heels of Okta's Q1 2026 results, which exceeded both company guidance and analyst expectations. A computer programmer working on a holographic digital twin technology software solution. Okta's (NASDAQ:OKTA) Q1 revenue jumped by 12% year-over-year to $688 million, with the largest share of the growth emanating from increased subscription revenue. The company posted a record GAAP operating income of $39 million, compared to a GAAP operating loss of $47 million in Q1 2025. According to management, the solid start to FY26 is thanks to the world's biggest organizations turning to the company to 'solve identity security across their workforces, customers, and AI use cases.' Stifel analysts also noted this fact as one of many positive aspects in Okta's earnings report. The others include early signs of successful go-to-market strategy changes, increased traction with Auth0 and new logos, and continued momentum across newer product offerings. Okta, Inc. is the leading independent identity management company. It provides secure, cloud-based solutions to help organizations control who can access their apps and data. Its key products include tools for Single Sign-On (SSO), Multi-Factor Authentication (MFA), and user lifecycle management. While we acknowledge the potential of Okta, Inc. (NASDAQ:OKTA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OKTA and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Okta Declines 16% Post Q1 Earnings: Buy, Sell or Hold the Stock?
Okta OKTA shares dropped 16.16% on Wednesday to close at $105.22 following first-quarter fiscal 2026 results on Tuesday. Although the company reported impressive earnings and revenue growth, the decline in shares can be attributed to slowing top-line growth expectations for the fiscal second quarter as well as fiscal 2026. Okta expects second-quarter fiscal 2026 revenues between $710 million and $712 million, indicating 10% year-over-year growth (11.5% year-over-year growth in first-quarter fiscal 2026). The current portion of the company's remaining performance obligations (RPOs) is expected in the 10-11% range. Okta anticipates non-GAAP earnings between 83 cents and 84 cents per share. For fiscal 2026, OKTA still expects revenues between $2.85 billion and $2.86 billion, indicating 9-10% growth from the figure reported in fiscal 2025. Uncertainty in the federal business, along with challenging macroeconomic conditions, are headwinds for the company. However, Okta expects fiscal 2026 non-GAAP earnings between $3.23 and $3.28 per share, up from previous guidance between $3.15 and $3.20 per share. Year to date, Okta shares returned 33.5%, outperforming the broader Zacks Computer & Technology and close peers, including Microsoft MSFT, International Business Machines IBM and CyberArk CYBR. Shares of International Business Machines, CyberArk and Microsoft returned 18.4%, 14.5% and 8.5%, respectively. OKTA Stock's Performance Earnings Estimates Revision Trend Steady for OKTA For second-quarter fiscal 2026, the Zacks Consensus Estimate for OKTA's earnings has been steady at 79 cents per share over the past 30 days. The earnings figure suggests 9.72% year-over-year growth. For fiscal 2026, the Zacks Consensus Estimate for Okta's earnings has been steady at $3.19 per share over the past 30 days. The earnings figure suggests 13.52% growth over the figure reported in fiscal 2025. Okta's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 13.53%. OKTA Benefits From Strong Demand for Identity Solutions Okta benefits from strong demand for its new products, including Identity Governance, Privileged Access, Device Access, Fine Grained Authorization, Identity Security Posture Management, and Identity Threat Protection with Okta AI. Okta's Identity Security Posture Management and Privileged Access solutions are helping enterprises tackle non-human identities that comprise service accounts, shared accounts, machines and tokens. OKTA's innovative portfolio is helping the company win clients, driving top-line growth. It exited first-quarter fiscal 2026 with roughly 20,000 customers and $4.084 billion in RPOs, reflecting strong growth prospects for subscription revenues. Customers with more than $100 thousand in Annual Contract Value increased by 70 sequentially to 4,870. Okta's offerings include Okta AI, a suite of AI-powered capabilities embedded across several products, which empowers organizations to harness AI to build better experiences and protect against cyberattacks. Okta Platform and Auth0 Platform are compatible with public clouds, on-premises infrastructures and hybrid clouds. The Auth0 platform comprises the Auth0 Platform, Fine Grain Authorization, Highly Regulated Identity and Self Service. The combined governance portfolio of Okta Identity Governance, Lifecycle Management, and Workflows has surged 400% over the past three years to nearly $40 billion at the end of the fiscal first quarter. Okta is benefiting from a rich partner base that includes the likes of Amazon Web Services, CrowdStrike, Google, LexisNexis Risk Solutions, Microsoft, Netskope, Palo Alto Networks, Plaid, Proofpoint, Salesforce, ServiceNow, VMware, Workday, Yubico and Zscaler. Here's Why Okta Stock is a Hold Now Okta shares are overvalued, as suggested by the Value Score of F. In terms of forward Price/Cash Flow, OKTA is trading at 24.59X compared with the broader sector's 19.8X, suggesting a premium valuation. Price/Cash Flow F12M The stock is currently trading below the 50-day and 200-day moving averages, indicating a bearish trend. OKTA Stock Trades Below 50-Day & 200-Day SMAs Despite having an innovative portfolio and expanding clientele OKTA suffers from challenging macroeconomic condition and a stretched valuation that makes the stock risky in the near term. Okta currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report Okta, Inc. (OKTA): Free Stock Analysis Report
