Shares of Okta Inc (NASDAQ:OKTA) rose in early trading on Wednesday, after the company reported upbeat fiscal third-quarter results.
Here are some key analyst takeaways:
- Scotiabank analyst Patrick Colville maintained a Sector Perform rating, while reducing the price target from $105 to $85.
- Needham analyst Mike Cikos reiterated a Buy rating, while cutting the price target from $125 to $110.
- BTIG analyst Gray Powell reaffirmed a Buy rating, while slashing the price target from $142 to $116.
Check out other analyst stock ratings.
Scotiabank: Okta's cRPO (current remaining performance obligations) grew 13% in the quarter, the guidance for the fourth quarter "was less exciting and slightly below consensus," Colville said in a note. The guidance implies a year-on-year deceleration cRPO growth for the fourth consecutive quarter, he added.
Okta's operating margin came in above the guidance and management raised their full-year outlook by slightly more than the beat, the analyst stated. "This is important as Okta's bottom line discipline has helped support the stock given the slowing topline," he further wrote.
Needham: Okta's third-quarter results came in higher than the guidance and the company raised its full-year outlook by more than the beat, Cikos said. Management did not provide guidance for fiscal 2027, citing "material seasonality to Okta’s business," he added.
Management indicated that more than 100 existing customers, representing over $200 million in ARR (annual recurring revenue), "have already engaged with Okta – as organizations look for a single control plane to observe and manage AI Agents," the analyst wrote.
BTIG: Okta reported cRPO of $2,328 million, above consensus of $2,264 million, Powell said. The company guided to fiscal fourth quarter revenue of $749 million, beating Street expectations of $738 million, he added.
The fourth-quarter cRPO guidance guide of $2,447.5 million represents 8.9% year-on-year growth versus 12.9% in the third quarter and coming in below consensus of $2,453 million, the analyst stated. "We note OKTA faced a tough comparison against last year that many did not seem to factor into estimates," he further wrote.
OKTA Price Action: Shares of Okta had risen by 1.21% to $82.86 at the time of publication on Wednesday.
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