Okta (OKTA) Stock Forecast & Price Target

Okta reported a 13% year-on-year revenue growth, totaling $682 million, surpassing both management's and consensus forecasts, indicating a robust financial performance. The company experienced a significant rise in its customer base, with OIG customers increasing approximately 30% half-over-half, reflecting the success of its workforce and customer offerings. Okta's solid quarterly results also prompted management to raise its FY26 revenue growth guidance from 7% to a range of 9%-10%, further supporting a positive outlook for the company's financial trajectory.

Okta's recent financial performance reveals potential vulnerabilities, particularly with Interest and Other Income falling short of forecasts, indicating challenges in revenue generation. Although the Non-GAAP EPS exceeded guidance and estimates, concerns persist regarding deal closure volatility and reliance on large enterprises that may favor on-premises solutions amidst economic slowdowns. Additionally, integration issues may lead to attrition in the sales force, while any high-profile security breaches could tarnish Okta's reputation, further complicating growth prospects.