Okta stock tumbled on Tuesday after the cybersecurity firm reported first-quarter earnings and revenue that topped consensus estimates while July quarter revenue guidance came in slightly above views.
Reported after the market close, Okta earnings were 86 cents per share on an adjusted basis for the quarter ending April 30, up 32% from a year earlier. San Francisco-based Okta said revenue climbed 12% to $688 million.
Analysts had expected Okta earnings of 77 cents per share on revenue of $680.3 million.
A key financial metric, current remaining performance obligations, or CRPO, bookings topped views. In Q1, CRPO rose 14% to $2.227 billion vs. estimates of $2.184.6 billion. CRPO bookings are an aggregate of deferred revenue and order backlog.
For the current quarter ending in July, Okta predicted revenue of $711 million at the midpoint of guidance, up 10%, slightly above estimates of $709 million.
But despite the Q1 beat and solid Q2 guidance, Okta only maintained full-year guidance, citing macroeconomic uncertainty.
"Okta delivered a solid quarter and outperformed expectations on all metrics, with CRPO nicely ahead while fiscal 2026 guidance is unchanged to slightly higher, but now includes uncertainties around the macro (economy)," said RBC Capital analyst Matthew Hedberg in a report.
On the stock market today, Okta stock tumbled more than 11% to 111.14 in extended trading. OKTA had advanced 57% in 2025 prior to the earnings report.
The company's security software monitors and manages privileged accounts. Hackers often target employees or management with administrative access to company computer systems.
Heading into the earnings report, Okta owned a Relative Strength Rating of 95 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity, quantum computing and cloud computing.
