In the countdown to another pivotal earnings season, all eyes are turning to Okta (OKTA), the leading independent identity management service. The company is scheduled to release its second-quarter fiscal year 2026 results after the market closes on Tuesday, Aug. 26.
In recent quarters, OKTA stock has faced pressure whenever management issued cautious guidance, and the latest period followed the same trend. Even so, the company continues to see expanding market opportunities as artificial intelligence (AI) adds new layers of complexity to identity management.
With sentiment balancing between measured near-term outlooks and the promise of a growing market, the upcoming earnings disclosure will be a key moment in gauging Okta’s position and its ability to navigate current conditions while pursuing longer-term growth.
About Okta Stock
Okta (OKTA) is headquartered in San Francisco, California, and operates as an independent identity management service with two main product lines, Okta Information Technology Products and Okta for Developers. With a market cap of roughly $15.6 billion, the company provides neutral, cloud-based identity solutions that integrate seamlessly with virtually any application, service, or cloud platform.
From a performance perspective, OKTA stock has slipped nearly 3.7% over the past 52 weeks. Yet in 2025, it has advanced almost 17%, comfortably ahead of the S&P 500 Index’s ($SPX) year-to-date (YTD) gain of 9.8%.
OKTA trades at 27.15 times forward-adjusted earnings and 5.46 times sales. These multiples sit above industry averages but remain below their own five-year historical levels, which some investors could view as a relative discount.
Okta Surpasses Q1 Earnings
On May 27, Okta delivered its first-quarter fiscal 2026 results, which surpassed Wall Street’s expectations. Revenue rose 11.5% year-over-year (YoY) to $688 million, beating the consensus estimate of $680 million. Subscription revenue also increased 11.6%, reaching $673 million.
Remaining performance obligations climbed to $4.084 billion, up 21% YoY, a signal of solid contracted demand ahead. The profitability picture was equally telling. Net income reached $62 million, reversing a loss of $40 million from the prior year’s quarter, while adjusted EPS grew 32.3% to $0.86, topping the $0.77 estimate.
Despite these beats, management opted to keep guidance steady, underscoring a cautious approach in the face of macroeconomic and enterprise-spending uncertainties.
For the second quarter of fiscal 2026, Okta has projected revenue of between $710 million and $712 million, representing a 10% YoY growth, and a current remaining performance obligation (RPO) of between $2.2 billion and $2.205 billion, also reflecting a 10% to 11% growth. Non-GAAP diluted net income per share is guided to a range of $0.83 to $0.84.
For the full fiscal year 2026, Okta expects revenue of $2.85 billion to $2.86 billion, translating to 9% to 10% growth, and non-GAAP diluted EPS between $3.23 and $3.28.
Meanwhile, analysts' forecasts for the second quarter of fiscal 2026 call for EPS of $0.33, marking a 57.1% increase from the prior year’s period. For the full fiscal year 2026, projections point to earnings of $1.22, a 205% jump from fiscal 2025. Looking further ahead, fiscal 2027 earnings are expected to climb another 26.2% to $1.54.
What Do Analysts Expect for Okta Stock?
Analyst sentiment toward OKTA leans positive, with the stock carrying an overall “Moderate Buy” rating. Of the 41 analysts covering it, 21 call it a “Strong Buy,” two rate it a “Moderate Buy,” 16 recommend to “Hold,” one advises a “Moderate Sell,” and one “Strong Sell.”
OKTA’s average price target of $122.63 represents potential upside of 37.3%. Meanwhile, the Street-high target of $148 suggests a potential climb of 65.7% from current levels.
