Okta Inc (NASDAQ:OKTA) shares were climbing on Wednesday after the company reported upbeat third-quarter results.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
BMO Capital Markets On Okta
Analyst Keith Bachman reiterated a Market Perform rating while lifting the price target from $103 to $105.
Okta generated revenue growth of 14% year-on-year, exceeded consensus of 11%, Bachman said in a note. "We believe Okta executed well against a macro that remains characterized by ongoing scrutiny and software rationalization, consistent with the past few quarters," he added.
The company provided a conservative guidance for fiscal 2026, which "sets an achievable bar," particularly for revenue growth of 7%, the analyst stated. "While this quarter is a step in the right direction, we continue to harbor concerns on long-term product expansion and competition," he further wrote.
Needham On Okta
Analyst Mike Cikos maintained a Buy rating while raising the price target from $100 to $115.
Okta’s results exhibited "improved execution, with solid performance from Large Customers, Partners, and New Products," Cikos said. The quarter indicated "early signs of product adoption," with the company's offering significantly expanding in recent quarters, as well as easing headwinds from the "COVID cohort," he added.
Investors may be "caught off-guard" by the company's preliminary guidance of revenues between $2.77 billion and $2.78 billion in fiscal 2026, which missed the consensus estimate of $2.81 billion, the analyst stated. "However, we see the preliminary outlook as just that — preliminary; which is conservative based on management’s typical approach to guidance — setting for cRPO," he further wrote.
Stifel On Okta
Analyst Adam Borg reiterated a Buy rating while raising the price target from $108 to $115.
Okta delivered strong results for the third quarter with all key metrics above guidance, "although several metrics including NRR and new logo additions remain softer," Borg said. The company's fourth-quarter guidance was above expectations, and its full-year guidance was raised by more than the beat, he added.
Okta’s 2026 outlook "will prove conservative as the year plays out," the analyst stated. "Given Okta’s broadening workforce/customer identity portfolio, the company plans to build out GTM specializations next year to reinvigorate growth, moves we support," he further wrote.
Piper Sandler On Okta
Analyst Rob Owens reaffirmed a Neutral rating while raising the price target from $85 to $90.
Okta's subscription revenue of $651 million represented a deceleration to 14% year-on-year growth "but beat our estimate of $635M," Owens said. The company's total revenue came in higher than the midpoint of guidance by 2.5%, "slightly above last quarter’s beat but below the one-year average," he added.
The company reported cRPO of $2.062 billion, which topped the guidance midpoint by $75 million, the analyst stated. "Commentary surrounding down-sell pressures on renewals potentially easing in 2H’26 was encouraging, but clarity on the sustainable growth remains hazy," he further wrote.
Check out other analyst stock ratings.
Goldman Sachs On Okta
Analyst Gabriela Borges maintained a Buy rating while raising the price target from $97 to $107.
Okta reported its quarterly revenues, EBIT and cRPO higher than consensus by 2%, 15% and 4%, respectively, Borges said. "New products represented 15% of bookings, up from last year as Okta has an expanded product portfolio, she added.
Its fourth-quarter revenue and EBIT guidance came in 3% and 10% above the Street, while cRPO guidance is 1% high, the analyst stated. Although management's initial fiscal 2026 revenue guidance is 1% below the Street, "we believe is consistent with investor expectations at +7% yoy," she further wrote.
Guggenheim Securities On Okta
Analyst John DiFucci maintained a Buy rating and price target of $130.
Okta "easily exceeded" the consensus estimates and guided above the Street, DiFucci said. He added, however, that the company's preliminary fiscal 2026 revenue growth guidance of 7% came in below consensus of 9%.
"Although management noted that it was no longer incorporating additional conservatism into guidance due to the incident of October 2023, we estimate that a meaningful amount of conservatism is still included in preliminary FY26 numbers," the analyst wrote.
Management indicated continued seeing pressure on seat number in deals, "but this is at least partially being offset by growth in new product sales," he further stated.
RBC Capital Markets On Okta
Analyst Matthew Hedberg had an Outperform rating and a price target of $101.
"Okta delivered another solid quarter relative to expectations," Hedberg wrote in a note, as well as that cRPO grew by 13%, higher than guidance of 9%.
The company's fourth-quarter cRPO guidance of 9% year-on-year "looks conservative," the analyst stated. "The FY/26 early look includes a sales org shift to specialized selling, a disappointing/conservative 7% revenue growth vs prior consensus at 9.6% and at least 22%/24% OI/FCF margins that was in-line with consensus," he further wrote.
Oppenheimer On Okta
Analyst Ittai Kidron reiterated an Outperform rating and price target of $125.
Okta's third-quarter results were strong and fourth-quarter guidance came above consensus, Kidron said. "Large customer trends and product cross-sell activity remain healthy and are offsetting ongoing macro headwinds on new customer adds (+150 QoQ) and existing customer seat/license/MAU expansion," he added.
While management maintained a cautious tone regarding the macro environment, they were increasingly positive on product and cross-sell opportunities, the analyst stated. "Consistent with this, Okta is investing (new products, GSI/channel, etc.), and evolving its GTM (specialization), which bodes well for continued near-term upside driven by existing customers," he further wrote.
KeyBanc Capital Markets On Okta
Analyst Eric Heath reiterated a Sector Weight rating on the stock.
Okta's beat on cRPO, revenue, and margins was "solid," Heath said. The company guided its fourth-quarter cRPO $26 million above consensus versus guiding below in the prior two quarters, he added.
Management does not expect the outperformance from the initial revenue guide for fiscal 2025 to repeat in fiscal 2026, the analyst stated. "Assuming typical seasonal cRPO growth and consistent cRPO coverage, it may suggest a similar degree of upside," he further wrote.
OKTA Price Action: Shares of Okta had risen by 4.39% to $85.22 at the time of publication on Wednesday.
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