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Okta (OKTA - Free Report) closed the most recent trading day at $194.02, moving +2.15% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq lost 0.02%.

Shares of the cloud identity management company witnessed a loss of 0.73% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.28%, and underperforming the S&P 500's gain of 0.67%.

Market participants will be closely following the financial results of Okta in its upcoming release. On that day, Okta is projected to report earnings of $0.93 per share, which would represent year-over-year growth of 13.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $815.52 million, up 9.91% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.93 per share and a revenue of $3.22 billion, signifying shifts of +12.29% and +10.44%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Okta is carrying a Zacks Rank of #2 (Buy).

From a valuation perspective, Okta is currently exchanging hands at a Forward P/E ratio of 48.36. This indicates a discount in contrast to its industry's Forward P/E of 49.76.

One should further note that OKTA currently holds a PEG ratio of 2.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security industry had an average PEG ratio of 2.89 as trading concluded yesterday.

The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Bitzero (NASDAQ:AIBZ – Get Free Report) and Okta (NASDAQ:OKTA – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Valuation and Earnings
This table compares Bitzero and Okta”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue
Price/Sales Ratio
Net Income
Earnings Per Share
Price/Earnings Ratio

Bitzero
$7.50 million
16.82
-$12.09 million
($0.24)
-9.71

Okta
$2.92 billion
11.22
$235.00 million
$1.66
112.81

Okta has higher revenue and earnings than Bitzero. Bitzero is trading at a lower price-to-earnings ratio than Okta, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Bitzero and Okta’s net margins, return on equity and return on assets.

Net Margins
Return on Equity
Return on Assets

Bitzero
N/A
-167.23%
-56.70%

Okta
9.63%
4.50%
3.34%

Insider & Institutional Ownership
86.6% of Okta shares are held by institutional investors. 4.6% of Okta shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations
This is a breakdown of recent ratings and price targets for Bitzero and Okta, as provided by MarketBeat.com.

Sell Ratings
Hold Ratings
Buy Ratings
Strong Buy Ratings
Rating Score

Bitzero
1
0
0
0
1.00

Okta
0
11
31
1
2.77

Okta has a consensus target price of $202.38, indicating a potential upside of 8.08%. Given Okta’s stronger consensus rating and higher possible upside, analysts clearly believe Okta is more favorable than Bitzero.

Summary
Okta beats Bitzero on 13 of the 14 factors compared between the two stocks.

About Bitzero
(Get Free Report)

Bitzero Holdings Inc. is a provider of IT energy infrastructure and power for data centers. It provides Bitcoin mining, as well as hosts and provides space and operating and maintenance services to third-party mining companies. The company has four data centers in the North American and Scandinavian regions. Bitzero Holdings Inc. is based in Vancouver, Canada.

About Okta
(Get Free Report)

Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials. It also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Lifecycle Management enables IT organizations or developers to manage a user's identity throughout its lifecycle; Okta Identity Governance provides identity access management and identity governance solutions; Advanced Server Access offers access management to secure cloud infrastructure; Okta Privileged Access enables organizations to reduce risk with unified access and governance management for on-premises and cloud resources; and Okta Workforce Identity Workflows. In addition, the company offers Universal Login, which allows customers to provide login experience across different applications and devices; and Attack Protection, a suite of security capabilities that protects customers from different types of malicious traffic. Further, it provides Adaptive Multi-Factor Authentication, Passwordless, Machine to Machine, Private Cloud, Organizations, Actions and Extensibility, and Enterprise Connections. The company sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

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On October 14, 2026, Okta Inc OKTA shares fell 6.5% to $211.91, a notable decline amid a 52-week trading range of $62.66 to $235.00. This downward movement raises questions about the stock's current valuation.

GF Value™ verdict: Current price of $211.91 is 96.0% above the fair value estimate of $108.12.GF Score™ of 62/100 indicates the stock is above average in overall performance.Insider activity shows a net selling of $57.9 million over the past 12 months, with $0.3 million in purchases.Is OKTA Overvalued or Undervalued?According to the GF Value™, Okta Inc is significantly overvalued, with the current price of $211.91 far exceeding the fair value estimate of $108.12. The substantial difference of $103.79 suggests a lack of margin of safety for prospective investors. The GF Value™ is GuruFocus' proprietary intrinsic-value estimate, which integrates historical trading multiples, past business growth, and predictions for future performance. Given the current valuation, investors face considerable risk if they enter at this inflated price point.

The overvaluation is further underscored by the GF Valuation label, which categorizes the stock as significantly overvalued. Such a designation signals caution for those considering an investment, as it implies that the stock price may not sustain itself in the face of market corrections or disappointing business performance.

How Does OKTA's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)128.1x103.1xForward P/E48.8x-Okta's current P/E ratio of 128.1x is 24% above its 5-year median P/E of 103.1x, indicating that the stock is trading at a premium compared to its historical valuation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the conclusion that Okta is overvalued at present.

What Does OKTA's GF Score™ Tell Us?The GF Score™ evaluates a stock's financial strength, profitability, growth potential, valuation, and momentum. For Okta Inc, the GF Score™ of 62/100 suggests it is above average overall, but there are significant variances in its sub-ranks.

MetricRatingGF Score™62Financial Strength9/10Profitability4/10Growth7/10Valuation1/10Momentum3/10The strongest area for Okta is its financial strength, rated at 9/10, indicating a solid balance sheet and financial stability. However, the valuation rank of 1/10 is concerning, reflecting the current overvaluation issue. The profitability rank of 4/10 suggests that while the company is generating profits, it is not performing exceptionally compared to its peers.

What Are Gurus and Insiders Doing with OKTA?Currently, five gurus hold shares of Okta, with two increasing their positions and five reducing their stakes in recent quarters. This mixed activity indicates a cautious sentiment among institutional investors regarding the stock's future performance.

In terms of insider trading, over the past 12 months, insiders bought a mere $0.3 million worth of shares while selling $58.2 million, resulting in a net selling of $57.9 million. This pattern of significant insider selling relative to buying raises red flags and suggests that even those closest to the company may not be confident in its short-term prospects.

What This Means for InvestorsTaking into account the GF Value™ analysis, Okta Inc appears to be significantly overvalued at the current price of $211.91, which is a stark contrast to the GF Value™ estimate of $108.12. The high P/E ratio and the concerning insider selling pattern further underscore the risks associated with investing in the stock at this time. For a deeper dive into Okta's financials and performance metrics, you can visit the Okta Inc OKTA stock page.

Frequently Asked QuestionsWhat is OKTA's GF Score™?

OKTA has a GF Score™ of 62/100, indicating it is performing above average relative to its peers.

Is OKTA overvalued or undervalued?

According to the GF Value™ verdict, OKTA is currently significantly overvalued, with a price well above the fair value estimate.

What is OKTA's P/E ratio?

The P/E ratio for OKTA is 128.1x, which is significantly higher than its 5-year median of 103.1x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Choosing between CrowdStrike (CRWD -0.35%) and Okta (OKTA +0.18%) in 2026 requires balancing high-octane growth against established profitability. Both companies are central to modern digital defense but serve different security needs.

CrowdStrike focuses on stopping breaches at the endpoint and cloud level, while Okta specializes in identity as the primary security perimeter. They are often compared because both utilize software-as-a-service models to protect large enterprises from sophisticated cyberattacks. This comparison examines their financials, valuations, and risks to help you decide.

The case for CrowdStrikeCrowdStrike sells its AI-native Falcon platform as a subscription to protect endpoints, cloud workloads, and identities. It serves a global customer base across various industries, including the government and technology sectors. Following an incident in July 2024, the company faced some contract terminations and deferred purchases. To mitigate these impacts, it now provides customer commitment packages that include subscription extensions and discounts. This platform remains a central part of the broader tech stocks landscape.

In FY 2026, revenue reached nearly $4.8 billion, representing growth of approximately 21.7% over the previous year. However, the company reported a net loss of roughly $162.5 million for the period. This represents a widening loss compared to the previous fiscal year, when the net loss was closer to $19.3 million. Despite the reported loss, the company continues to invest heavily in expanding its platform capabilities.

As of its January 2026 balance sheet, the debt-to-equity ratio was approximately 0.2x. This ratio compares total debt to the value owned by shareholders, with lower numbers generally suggesting less financial risk. The current ratio, which measures the ability to pay short-term debts with current assets, was about 1.8x. Free cash flow was close to $1.3 billion. Note that stock-based compensation represented roughly 68% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

The case for OktaOkta provides identity solutions to over 20,000 customers globally, including large enterprises and government agencies. It secures digital access for humans, machines, and artificial intelligence agents. The company generates revenue primarily through multi-year subscriptions sold directly or through a partner ecosystem of resellers and cloud marketplaces. Its focus on neutral, cloud-independent identity management allows it to integrate with thousands of different applications.

In FY 2026, revenue reached nearly $2.9 billion, a growth rate of about 11.8% year over year. The company reported a net income of approximately $235.0 million during this period. This shows a notable increase from the prior fiscal year, when net income was close to $28.0 million. The transition to consistent profitability is a significant milestone for the company as it scales its workforce and customer identity segments.

As of its January 2026 balance sheet, the debt-to-equity ratio was roughly 0.1x. This metric measures total debt against shareholder equity, showing how much a company relies on borrowing to fund its operations. The current ratio, which shows if a company has enough liquid assets to cover its upcoming bills, was approximately 1.4x. Free cash flow for the period was nearly $905.0 million, reflecting a business that generates significant cash from its operations.

Risk profile comparisonThe July 19, 2024, content configuration update incident has materially harmed the reputation and financial results for CrowdStrike. This event led to ongoing securities litigation and class action lawsuits. The company also faces intense competition from Microsoft (MSFT +1.34%) and large cloud-based security firms like Palo Alto Networks (PANW -0.94%). Furthermore, it relies heavily on Amazon (AMZN +0.28%) for data center infrastructure, which creates vulnerability to service disruptions.

Okta faces significant risks from intense competition, particularly from Microsoft, which may bundle identity products with other software at lower prices. Past unauthorized access to customer support systems has created reputational risks and potential legal liability. The company is also vulnerable to service interruptions in its third-party hosted infrastructure. Additionally, its dual-class share structure concentrates voting power among specific stockholders, which limits the influence of other investors on corporate decisions.

Valuation comparisonOkta appears significantly cheaper on both earnings and sales multiples, while CrowdStrike continues to command a steep premium for its faster revenue growth and market scale.

MetricCrowdStrikeOktaForward P/E219.5x59.1xP/S ratio51.9x12.5xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

The Forward P/E ratio compares a company's stock price to its future earnings estimates for the coming year. The P/S ratio measures the market value of a company against its sales over the past twelve months.

I'd go with CrowdStrike, and after its recent standout quarter, it's difficult to find a reason to look elsewhere. The CEO called it the best quarter in company history, with record net new annual recurring revenue growing more than 50% year over year, record free cash flow, and a substantially raised full-year outlook. Every enterprise adding AI workloads creates new security vulnerabilities, which means CrowdStrike's addressable market keeps expanding alongside the AI build-out itself.

Okta had its own strong quarter to point to. In Q2 fiscal 2027, the company posted record bookings for a non-Q4 quarter, beat estimates by a wide margin, and saw its stock surge nearly 20% after the report. New AI-focused identity products are gaining traction, and the company has eliminated its remaining convertible debt. For a company that spent years navigating a difficult stretch after a high-profile breach, that kind of quarter signals something has shifted.

Both companies are worth owning. But CrowdStrike is growing faster, with a broader platform and an addressable market that AI keeps making bigger.

What happened Okta, Inc. (NASDAQ: OKTA) said Chief Accounting Officer Shibu Ninan sold 14,677 shares of Class A Common Stock on 2026-10-07 and 2026-10-08. The shares were sold at weighted-average prices from $216.35 to $220.00 per share, for about $3.20 million in total. Three sales were reported on 2026-10-07 and one on 2026-10-08.

The first 2026-10-07 sale left Ninan with 23,048 shares, before later trades cut that to 11,071. The filing says the trades were made under a Rule 10b5-1 trading plan adopted on July 8, 2026.

Key numbers Metric Latest Change Source Shares sold 14,677 shares SEC Form 4 Sale price range $216.35 to $220.00 per share SEC Form 4 Total sale value about $3.20 million SEC Form 4 Shares held after sale 11,071 shares SEC Form 4 Sale as share of pre-trade holding 57.0% Calculated from SEC Form 4 Read more: Okta (OKTA) stock analysis and investment case Why it matters OptimistFi's case is that Okta works if independent, cloud-neutral identity remains a must-have security layer and if management keeps converting that subscription base into durable GAAP profit and cash flow. This filing leaves that case unchanged because the transaction was preplanned under Rule 10b5-1, which makes it harder to read as a fresh statement about the business.

The sale covered 14,677 shares, about 57.0% of Ninan's pre-trade holding, so it was a large position move even though the post-trade holding remained 11,071 shares. That matters because the filing is a direct read on insider positioning, not on company performance. Because the filing shows a sale rather than a purchase, it trims the insider's direct share count, but it does not change Okta's reported business. For investors, that keeps the focus on operations, not the Form 4 itself.

The caveat is the one the filing itself provides: a scheduled trading plan can produce a sale without any new information about operations or outlook. The plan date was 2026-07-08, so the sale fits a scheduled pattern rather than a surprise.

Browse: stock research on every company OptimistFi covers

What's next Okta's next quarterly report is the next scheduled test of whether the business still supports OptimistFi's case. Stronger operating profit and cash flow would matter more than this preplanned sale. Weaker results would make the insider trade look even less important than the operating trend, while a clean follow-through would keep the thesis intact.

This filing is about ownership, not operations, and the next report will matter more.

More from OptimistFi OKTA stock: the Okta thesis, its status and the next test to watch Levi Strauss & Co. (NYSE: LEVI) Raises Profit as Wholesale Outruns DTC Park Aerospace Corp. (NYSE: PKE) Expands Profit as Sales Rise Helen of Troy Limited (NASDAQ: HELE) Lifts Profit as Cash Flow Rebounds Stock research on every company OptimistFi covers Latest stock research and investment-case updates OptimistFi: evidence-first equity research Sources SEC Form 4 — Reporting person Shibu Ninan sold 14,677 shares of Okta Class A Common Stock under a Rule 10b5-1 plan. Read the full OptimistFi thesis on Okta, Inc.: https://optimistfi.com/stocks/OKTA

See what would break the Okta, Inc. thesis and track it live on the OptimistFi Thesis-Break Engine.

Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.

The full Okta, Inc. investment case, its status and the next test to watch live on the Okta, Inc. thesis page.

Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.

]The S&P 500 technology sector had a strong September, delivering a return of approximately 5.1%. Notably, among all 11 sectors, tech was the only one to register a positive performance during the month. Amid this, it’s not surprising to see that technology stocks topped the list of the most upgraded names by Wall Street analysts. These are three stocks that analysts showered with praise last month, and what price targets say about their potential going forward.

Get Dell Technologies alerts:

Meta’s Big Comeback: Muse Is Winning Over Markets and AnalystsMeta Platforms Stock Forecast Today12-Month Stock Price Forecast:
$791.86
6.56% Upside

Moderate Buy
Based on 57 Analyst Ratings

Current Price$743.12High Forecast$1,000.00Average Forecast$791.86Low Forecast$580.00Meta Platforms Stock Forecast Details

Over recent months, Meta Platforms NASDAQ: META has experienced arguably the largest positive shift in sentiment of any AI stock. Following its Q2 earnings report, META closed at approximately $538, leaving shares down 18% on the year. However, Meta now trades well above $700 and has seen its year-to-date return exceed 10%.

The most critical factor in this shift has been the release of its Muse Personal AI agent. According to Sensor Tower, Muse reached 5 million app downloads in just 22 days, less than half the 56 days it took ChatGPT to achieve this. Clearly, Muse is generating strong interest as Meta targets the agentic e-commerce market that could be worth hundreds of billions of dollars over the coming years.

Muse’s release helped Meta become one of the most upgraded stocks in September, receiving more than 15 upgrades or price target increases. Following this, the MarketBeat consensus price target of $791.86 implies limited upside of less than 10%. However, the average of targets updated in September is dramatically higher, at nearly $858, implying upside of about 15%.

Analysts Shower Dell in Upgrades After Record EarningsDell Technologies Stock Forecast Today12-Month Stock Price Forecast:
$571.12
-0.46% Downside

Moderate Buy
Based on 36 Analyst Ratings

Current Price$573.79High Forecast$735.00Average Forecast$571.12Low Forecast$289.00Dell Technologies Stock Forecast Details

Unlike Meta, Dell Technologies NYSE: DELL has experienced a strong rally throughout most of 2026. Shares are up more than 350% year to date as the company sees strong demand for its AI servers.

The company’s Q2 earnings report at the beginning of September was a huge upside catalyst. Shares soared 15.8% following this report, as Dell posted record revenue and record earnings per share (EPS). Its sales of $47 billion were more than $2 billion higher than anticipated, and its EPS of $7.04 walloped estimates of $4.91. The company says it now has a record AI backlog of $95 billion, and that its pipeline of potential deals is multiple times larger than this.

The company’s record results led to analysts upgrading the stock en masse, with Dell receiving approximately 15 upgrades or price target increases in September. The MarketBeat consensus price target of $571.12 sits roughly in line with recent trading levels. However, the average moves up moderately to just under $600 when isolating September updates, putting those targets modestly above recent trading levels. September updates also show a relatively wide range, with Deutsche Bank’s $480 target the lowest and Melius Research’s $735 the highest.

Okta Leads the Pack on September UpgradesOkta Stock Forecast Today12-Month Stock Price Forecast:
$200.72
-8.22% Downside

Moderate Buy
Based on 43 Analyst Ratings

Current Price$218.68High Forecast$245.00Average Forecast$200.72Low Forecast$60.00Okta Stock Forecast Details

Okta NASDAQ: OKTA, one of the largest players in the cybersecurity industry, takes the cake as September’s most upgraded stock, per MarketBeat data. During the month, Okta received more than 25 analyst upgrades or price target increases, and shares are up approximately 150% in 2026. The vast majority of Okta’s September upgrades came after the company’s Oktane conference. This comes as Okta provided more details on one of its key initiatives: Okta for AI Agents.

As the use of AI agents expands, the product allows companies to track where agents are, what they can do, what they are actually doing, and decide how to respond. Notably, the company’s CEO, Todd McKinnon, said that the market for securing AI agents could be larger than the entire Identity and Access Management (IAM) market is today. Grand View Research estimates that the IAM market was worth around $26.8 billion in 2025.

After Okta’s gains and upgrades, the MarketBeat consensus price target of nearly $201 implies moderate downside in shares. However, the average of targets updated in September is considerably higher, near $225.

12-Month Targets Often Don’t Tell the Full StoryWhile average price targets across Meta, Dell, and Okta imply somewhat limited upside, these are 12-month forecasts. This is important to understand, given that these companies are targeting markets that have a long potential growth runway.

For example, Okta believes the market for securing AI agents could be larger than the entire IAM market today. However, Okta for AI Agents has only been generally available since April, and the firm has not provided specific revenue numbers for the product yet. As it relates to Meta, Morgan Stanley estimates that AI agents could account for up to 20% of e-commerce in 2030, compared to just 1% today. And, although the AI server market is already very large, Grand View Research estimates it could grow from $157 billion in 2026 to $598 billion by 2033.

The moral of the story is that because price targets only look 12 months out, they do not necessarily capture the long-term growth opportunities of each company. In turn, they may not fully capture the long-term opportunities in the share prices of these firms.

Should You Invest $1,000 in Dell Technologies Right Now?Before you consider Dell Technologies, you'll want to hear this.

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Okta (OKTA - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this cloud identity management company have returned +24% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Security industry, to which Okta belongs, has gained 14.6% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Okta is expected to post earnings of $0.93 per share for the current quarter, representing a year-over-year change of +13.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $3.93 for the current fiscal year indicates a year-over-year change of +12.3%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $4.44 indicates a change of +13% from what Okta is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Okta.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Okta, the consensus sales estimate of $815.52 million for the current quarter points to a year-over-year change of +9.9%. The $3.22 billion and $3.55 billion estimates for the current and next fiscal years indicate changes of +10.4% and +10.1%, respectively.

Last Reported Results and Surprise HistoryOkta reported revenues of $805 million in the last reported quarter, representing a year-over-year change of +10.6%. EPS of $1.05 for the same period compares with $0.91 a year ago.

Compared to the Zacks Consensus Estimate of $792.14 million, the reported revenues represent a surprise of +1.62%. The EPS surprise was +9.38%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Okta is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Okta. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Okta (OKTA - Free Report) .

Okta currently has an average brokerage recommendation (ABR) of 1.49, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 43 brokerage firms. An ABR of 1.49 approximates between Strong Buy and Buy.

Of the 43 recommendations that derive the current ABR, 31 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 72.1% and 7% of all recommendations.

Brokerage Recommendation Trends for OKTA

Check price target & stock forecast for Okta here>>>

The ABR suggests buying Okta, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in OKTA?In terms of earnings estimate revisions for Okta, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $3.93.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Okta. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Okta.

Cybersecurity remains a top priority for businesses facing sophisticated digital threats in 2026. Choosing between CrowdStrike (CRWD +2.82%) and Okta (OKTA +3.58%) requires a close look at growth versus profitability.

CrowdStrike provides an AI-native platform designed to stop data breaches across various cloud environments and endpoints. Okta focuses on identity management, ensuring that only authorized users can access specific applications. Both companies are essential components of modern security stacks, but they offer very different financial profiles for investors.

The case for CrowdStrikeCrowdStrike utilizes an AI-native cybersecurity platform through its Falcon SaaS offering. The company operates in the broader landscape of tech stocks where speed and automation are the standard. Its commercial model serves global enterprises and government agencies, using a vast channel partner network to distribute its security subscriptions.

In its latest annual report, covering FY 2026, revenue reached nearly $4.8 billion. This represents approximately 21.7% growth compared to the previous year. Despite this top-line expansion, the company reported a net loss of approximately $162.5 million, resulting in a net margin of nearly -3.4%.

As of its January 2026 balance sheet, CrowdStrike maintains a current ratio of nearly 1.8x, which assesses a company's ability to cover its short-term bills with its short-term assets. The debt-to-equity ratio of roughly 0.2x measures total debt relative to shareholder equity. Free cash flow was nearly $1.3 billion, though note that stock-based compensation represented roughly 68% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

The case for OktaOkta operates as a leader in identity and access management, securing human and machine identities for over 20,000 customers. The company utilizes a direct sales force alongside an integration network that connects with thousands of third-party applications. This approach allows Okta to serve a diverse range of clients, from small businesses to global government agencies.

In its latest annual report for FY 2026, revenue reached nearly $2.9 billion. This reflects close to 11.8% growth over the prior fiscal period. Unlike its peer, Okta achieved a net income of approximately $235.0 million, yielding a net margin of roughly 8.1%.

As of its January 2026 balance sheet, Okta carries a debt-to-equity ratio of approximately 0.1x. Its current ratio is nearly 1.4x, indicating its ability to meet short-term obligations. Free cash flow for the period reached nearly $905.0 million, which represents cash from operations minus capital expenditures.

Risk profile comparisonCrowdStrike faces significant risks from the July 19, 2024, incident, which continues to impact its brand reputation and drive ongoing litigation. Competition is intense, especially from larger vendors that possess broader product portfolios and advanced artificial intelligence capabilities. Furthermore, the company relies heavily on third-party cloud infrastructure from Amazon (AMZN -1.41%), creating an operational dependency that could be vulnerable to service interruptions.

Okta faces its own set of challenges, particularly intense competition from Microsoft (MSFT -1.35%) and other established identity providers. The company is vulnerable to macroeconomic downturns that might cause businesses to tighten their IT budgets. Additionally, Okta remains a prime target for security incidents, as any breach of its identity services could severely damage the trust it has built with its global customer base.

Valuation comparisonOkta carries a significantly lower price tag than CrowdStrike based on both future earnings estimates and sales over the past twelve months.

MetricCrowdStrikeOktaForward P/E201.3x50.0xP/S ratio47.6x10.6xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

I'd go with CrowdStrike. And here is what makes it especially interesting right now: Every enterprise adding AI workloads also adds new entry points that need protecting, and that dynamic keeps expanding CrowdStrike's addressable market in ways that feel almost automatic. The financial results reflect that tailwind, with record annual recurring revenue, free cash flow approaching a third of total revenue, and a platform that continues to deepen its relationships with existing customers.

Okta is a strong player in cybersecurity. It just delivered a record-breaking quarter, beating estimates by a wide margin and seeing its stock surge nearly 20% after earnings. New AI-focused identity products are gaining traction, and the company has eliminated its remaining convertible debt.

But Okta is growing revenue at a more modest pace than CrowdStrike, and the identity security market, while important, is narrower than the broader endpoint and cloud security platform CrowdStrike has built. CrowdStrike's scale and platform depth simply make it the stronger long-term foundation.

A month has gone by since the last earnings report for Okta (OKTA - Free Report) . Shares have added about 19.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Okta due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Okta, Inc. before we dive into how investors and analysts have reacted as of late.

OKTA Q2 Earnings Beat on Subscription Growth, FY27 View RaisedOkta reported second-quarter fiscal 2027 earnings of $1.05 per share, which increased 15.4% year over year and beat the Zacks Consensus Estimate by 9.38%.

Revenues increased 10.6% year over year to $805 million, beating the consensus mark by 1.62%. Subscription momentum supported the quarter, with subscription revenues rising 12% to $793 million.

Location-wise, revenues from the United States contributed 87.6% to total revenues in the fiscal second quarter. The figure increased 10.19% year over year to $638 million. International revenues contributed 22.9% to total revenues. The figure increased 12.08% year over year to $167 million.

OKTA's Subscription Growth Supports the Top LineSubscription revenues accounted for nearly all of the top line, while Professional services and other revenues were $12 million, down 29.4% year over year from $17 million. Management said growth benefited from steady momentum across its core Workforce and Customer Identity businesses and contributions from newer products, led by Okta Identity Governance.

Workforce Identity represented 59% of annual contract value, or ACV, at quarter-end and grew 11% year over year. Customer Identity accounted for the remaining 41% and increased 13%, underscoring balanced growth across Okta’s two core identity businesses.

Okta's Backlog and Large Customers ExpandIn the second quarter of fiscal 2027, remaining performance obligations, which represent subscription backlog, increased 17% year over year to $4.858 billion. Current remaining performance obligations (cRPO), a key indicator of future subscription revenues, advanced 14% year over year to $2.585 billion.

Customers generating more than $100,000 in ACV increased 6% year over year to 5,255. The trailing-12-month dollar-based net retention rate was 107%, up one percentage point from the year-ago period, reflecting expansion within the existing customer base after accounting for contractions and churn.

OKTA's Profitability Shows Operating LeverageNon-GAAP gross margin was 81.9%, up 40 basis points year over year, while non-GAAP subscription gross margin improved 20 basis points to 83.9%.

On a non-GAAP basis, operating expenses increased 10.7% year over year to $434 million. Research and development expenses rose 16.5% to $127 million, while sales and marketing expenses increased 17.6% to $241 million. General and administrative expenses declined 15.4% to $66 million.

Non-GAAP operating income increased 11.9% year over year to $226 million. Non-GAAP operating margin expanded 50 basis points to 28.2%, highlighting continued profitability despite growth investments.

Okta's Cash Generation Remains StrongOkta ended July 31, 2026, with $2.299 billion in cash, cash equivalents and short-term investments compared with $2.589 billion as of April 30, 2026.

Net cash provided by operating activities was $234 million, representing 29% of revenues, compared with $167 million, or 23%, a year ago. Free cash flow increased to $227 million from $162 million, while the free cash flow margin expanded to 28% from 22%.

OKTA Raises Its Fiscal 2027 OutlookFor the third quarter of fiscal 2027, OKTA expects revenues of $813-$817 million, implying 10% year-over-year growth. cRPO is projected at $2.59-$2.60 billion, implying growth of 11-12%. Non-GAAP earnings are expected between 92 cents and 94 cents per share, with free cash flow of $175-$185 million.

For fiscal 2027, management raised its revenue outlook to $3.216-$3.226 billion, suggesting 10-11% growth, from the prior $3.185-$3.205 billion range. Non-GAAP earnings are now projected at $3.90-$3.94 per share compared with the previous $3.79-$3.87 range. Free cash flow guidance increased to $910-$930 million from $855-$885 million, with an expected margin of 28-29%.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 6.16% due to these changes.

VGM ScoresCurrently, Okta has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Okta has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Wall Street just handed Okta a coordinated vote of confidence tied to one bold bet on AI agents, and the price targets analysts set reveal exactly how high they think this identity play can run.

Bank of America (BofA) raised its price target on Okta Inc (NASDAQ:OKTA) to $220 from $200 after the company unveiled new AI-agent security and identity capabilities at its Oktane 2026 conference.

The bank said Okta’s ambition to become the identity control plane for AI agents was reinforced by new offerings including Agent SSO, runtime enforcement features and support for third-party identity providers.

The bank has retained its ‘neutral’ rating on the US-based identity and access management company.

BofA described the announcements as a continuation of early momentum rather than a change to its core investment thesis, while calling them another positive step for Okta’s AI strategy.

Agent SSO, now available at no additional cost within Okta’s core SSO offering, uses short-lived, identity-governed tokens instead of stored credentials and gives each supported agent a first-class identity.

Bank of America noted that this broadens adoption and creates a funnel into paid governance and runtime security controls.

Okta for AI Agents, which includes Shadow AI Agent Discovery, Agent Gateway and Agent-to-Agent Connections, extends Okta beyond authentication into agent governance and runtime enforcement.

Features such as permission mapping and a kill switch for deactivated agents are expected to strengthen monetization.

The report also highlighted Okta’s support for third-party identity providers, including Microsoft Entra ID.

BofA said support for third-party identity providers could expand Okta’s total addressable market by allowing it to sell AI-agent security alongside competing workforce identity platforms.

This strategy positions Okta to sell adjacent controls such as privileged access and runtime detection without needing to dominate the core identity system.

BofA said the AI-agent enhancements strengthen Okta’s opportunity to provide identity security across disparate systems.

Okta, Inc. (OKTA) Discusses Industry Dynamics and Competitive Positioning in Governance and Orchestration September 23, 2026 2:00 PM EDT

Company Participants

Dave Gennarelli - Senior Vice President of Investor Relations
Todd McKinnon - Co-Founder, Chairman & CEO
Richard Smith - President of Products and Technology
Jon Addison - Chief Revenue Officer

Conference Call Participants

Keith Bachman - BMO Capital Markets Equity Research
Brian Essex - JPMorgan Chase & Co, Research Division
Eric Heath - KeyBanc Capital Markets Inc., Research Division
Gray Powell - BTIG, LLC, Research Division
Richard Poland - Wells Fargo Securities, LLC, Research Division
Joshua Tilton - Wolfe Research, LLC
Fatima Boolani - Citigroup Inc., Research Division
Saket Kalia - Barclays Bank PLC, Research Division
Shrenik Kothari - Robert W. Baird & Co. Incorporated, Research Division
Steven Koenig - Macquarie Research
Michael Cikos - Needham & Company, LLC, Research Division
Gregg Moskowitz - Mizuho Securities USA LLC, Research Division
Yun Suk Kim - Loop Capital Markets LLC, Research Division
Robbie Owens - Piper Sandler & Co., Research Division
Nasr Islam - Deutsche Bank AG, Research Division
Rudy Kessinger - D.A. Davidson & Co., Research Division
Imtiaz Koujalgi - ROTH Capital Partners, LLC, Research Division
John DiFucci - Guggenheim Securities, LLC, Research Division

Presentation

Operator

This presentation contains forward-looking statements. We reserve the right to change the information in this presentation. More information can be found in our securities filings.

Dave Gennarelli
Senior Vice President of Investor Relations

Good morning, everybody. Welcome to Investor Summit at Oktane '26. So we've got Todd McKinnon, our Co-Founder and CEO; we've got Ric Smith, our President of Products and Technology; and Jon Addison, our CRO. So we're going to do a tight 60 minutes. But before we take questions, I'm going to turn it over to Todd for some quick opening commentary.

Todd McKinnon
Co-Founder, Chairman & CEO

[Audio Gap]

Lots of new vendors. There's going to be different dynamics in

Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting SeasonOkta NASDAQ: OKTA outlined its strategy for securing artificial intelligence agents at its Oktane event, introducing an industry “Blueprint Alliance,” expanding its Agent SSO standardization efforts and highlighting the generally available Okta for AI Agents platform.

The company said AI agents can improve efficiency and create new capabilities, but their growing access to enterprise systems also creates security and governance risks. Okta’s keynote speaker argued that enterprises need “visibility and control” to avoid choosing between locking down AI systems and allowing them broad, unmanaged access.

Get Okta alerts:

Blueprint Alliance Targets Agent Security Okta Stock Surges 29%—Is $200 the Next Stop?Okta said it has formed a Blueprint Alliance with technology companies including AWS, CrowdStrike and Salesforce to address what it described as market confusion around AI-agent security. The alliance’s framework centers on four questions:

Where are an organization’s agents? What can they do? What are they actually doing? How should an organization respond when something goes wrong? The blueprint calls for an agent registry that assigns unique identities, access governance to ensure agents retain only appropriate permissions, runtime monitoring and observability, and response capabilities such as a “kill switch” to disconnect an agent. It also includes common risk signals and standardized formats for sharing telemetry across participating technologies.

5 Stocks to Buy in September Before Wall Street Catches OnChet Kapoor, vice president at Amazon, said AI agents differ from traditional software because they are probabilistic rather than deterministic. He said organizations need controls that let them deploy agents at speed without relying on additional manual reviews and approval gates.

Kapoor said enterprises should verify each agent’s identity and owner, use task-scoped access, monitor and trace activity in real time, and contain an agent without affecting the rest of the environment. He also described the blueprint as a way to avoid vendor lock-in as customers use agents from cloud providers, software vendors and their own internal development teams.

Agent SSO and Cross App Access Okta also presented Agent SSO, which it said is available at no additional charge across its products. The capability is designed to allow AI agents to access enterprise resources without requiring users to repeatedly enter credentials and approve individual consent prompts.

During a demonstration, Mallory Sword Glenn, Okta’s director of product marketing, showed an AI workflow that needed access to Atlassian, GitHub and Slack. Without Agent SSO, the workflow required separate logins and approvals for each application. With Agent SSO, she said, the AI system was already connected to those resources after the user signed in through Okta FastPass.

Okta said Agent SSO is based on an open standard called Cross App Access. Rather than relying on a conventional OAuth consent flow for each connection, Cross App Access allows an enterprise identity provider to supply a predefined authorization policy for the agent.

David Soria Parra, a member of the technical staff at Anthropic and a co-creator of the Model Context Protocol, or MCP, said open standards give enterprises choice and enable the industry to build secure agent infrastructure together. He said enterprise-managed authorization can shift security decisions from end-user consent screens to IT administrators while maintaining a smoother user experience.

Okta said Claude now supports Cross App Access with Okta as its first identity provider. The company encouraged other software vendors and identity providers to adopt the protocol.

Okta for AI Agents Expands Okta said its flagship Okta for AI Agents product has been generally available since April. The platform is intended to provide the identity-related components of the broader agent-security blueprint, including unique agent identities, ownership, access controls and runtime governance.

The company said it has released 25 major features since April. Among the highlighted additions were Shadow AI Agent Discovery for Endpoints, Agent Gateway and support for third-party identity providers.

Harish Peri, Okta’s senior vice president and general manager for AI security, said each agent is treated as a “unique first-class identity” in Okta’s Universal Directory, rather than as a user or service account. He said the platform can identify agents across environments including endpoints, AWS, Salesforce, browsers and unapproved MCP servers.

Peri demonstrated how Okta’s Identity Security Posture Management capabilities could discover an unregistered endpoint agent and MCP server, register them in Universal Directory and map the agent’s connections to resources. He said the system is designed to provide traceability across a chain involving a user, agent, sub-agent, MCP server and resource.

Okta’s Agent Gateway acts as a centralized control point for MCP server connections, according to the presentation. Sword Glenn said it can apply granular policy to agent tool calls, log activity in real time and block access when an agent attempts an unauthorized action. In the demonstration, a sales agent was prevented from sending Salesforce-derived account information to a personal email address, and its Salesforce connection was severed.

Okta also said its platform now supports organizations that use another identity provider for human identities while using Okta for AI agent identities. The company said it is also supporting customer-facing agentic commerce through Auth0 for the Universal Commerce Protocol, which is intended to allow AI systems such as Gemini to interact with participating e-commerce services.

Customers Discuss Agent Deployments Okta cited deployments at Ramp, Yahoo and Dell Technologies. The company said Ramp uses an internal AI agent called Glass for employee productivity, while Yahoo uses Okta for AI Agents to broker connections between an internal software-engineering agent system and virtual MCP servers.

Dell Technologies CIO and President Doug Schmitt said Dell began digitizing processes years ago and later built AI platforms focused on supply chain, direct sales, services and research and development. He said agent identities and observability became necessary as Dell sought to track where agents were used, what they were doing and who was using them.

Schmitt said AI adoption is more than a technology shift and should be led across the company rather than solely by IT. “Business models are changing,” he said, adding that the pace of change continues to accelerate.

Okta said it uses an internal AI agent called Dex to connect to internal systems and automate operational work. The company said it expects Dex to save 250,000 hours this year. It also said capabilities shown in its demonstrations are either currently available or expected to be available by January.

About Okta (NASDAQ:OKTA)Okta, Inc provides cloud-based identity and access management solutions for organizations. Its platform helps businesses securely connect employees, customers, partners and applications while managing authentication, authorization and user access across cloud, on-premises and mobile environments.

The company's offerings include single sign-on, multifactor authentication, adaptive access controls, lifecycle management, identity governance and privileged access capabilities. Through its Customer Identity Cloud, powered by Auth0, Okta also provides tools for developers and businesses to embed authentication and authorization features into applications and digital services.

Founded in 2009 by Todd McKinnon and Frederic Kerrest, Okta completed its initial public offering in 2017.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Okta, Inc. (NASDAQ:OKTA – Get Free Report) insider Eric Kelleher sold 6,395 shares of the company’s stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $183.58, for a total transaction of $1,173,994.10. Following the sale, the insider directly owned 18,668 shares in the company, valued at approximately $3,427,071.44. This trade represents a 25.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Eric Robert Kelleher also recently made the following trade(s):

On Friday, September 11th, Eric Kelleher sold 2,549 shares of Okta stock. The stock was sold at an average price of $168.55, for a total transaction of $429,633.95. Okta Trading Up 2.8% Okta stock opened at $196.62 on Wednesday. The firm has a 50 day simple moving average of $155.43 and a 200 day simple moving average of $117.49. Okta, Inc. has a 1-year low of $62.66 and a 1-year high of $198.09. The firm has a market capitalization of $34.37 billion, a price-to-earnings ratio of 118.45, a P/E/G ratio of 5.95 and a beta of 0.79.

Okta (NASDAQ:OKTA – Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The company reported $1.05 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.09. The firm had revenue of $805.00 million during the quarter, compared to analyst estimates of $793.00 million. Okta had a return on equity of 4.50% and a net margin of 9.63%.The business’s revenue for the quarter was up 10.6% on a year-over-year basis. During the same period last year, the company earned $0.91 earnings per share. Okta has set its FY 2027 guidance at 3.900-3.940 EPS and its Q3 2027 guidance at 0.920-0.940 EPS. On average, equities research analysts forecast that Okta, Inc. will post 1.92 EPS for the current year. Institutional Investors Weigh In On Okta Hedge funds have recently made changes to their positions in the business. Andra AP fonden purchased a new position in shares of Okta in the second quarter worth $961,000. Junto Capital Management LP purchased a new stake in shares of Okta during the second quarter valued at $45,486,000. National Pension Service increased its holdings in Okta by 23.2% in the 2nd quarter. National Pension Service now owns 43,893 shares of the company’s stock worth $5,989,000 after buying an additional 8,257 shares in the last quarter. NewEdge Advisors LLC increased its holdings in Okta by 521.5% in the 2nd quarter. NewEdge Advisors LLC now owns 2,828 shares of the company’s stock worth $386,000 after buying an additional 2,373 shares in the last quarter. Finally, GFG Capital LLC raised its position in Okta by 12.0% in the 2nd quarter. GFG Capital LLC now owns 33,971 shares of the company’s stock worth $4,635,000 after buying an additional 3,639 shares during the last quarter. 86.64% of the stock is currently owned by institutional investors.

Key Headlines Impacting Okta Here are the key news stories impacting Okta this week:

Positive Sentiment: AI-agent security is the primary catalyst. Okta introduced an AI agent runtime gateway and announced the Blueprint Alliance with AWS and CrowdStrike, aiming to establish a shared architecture for agent identity, access controls and governance. The initiatives support management’s effort to make AI security a new growth avenue. Okta adds AI agent runtime gateway and forms Blueprint Alliance Positive Sentiment: Wall Street continues raising expectations. Needham lifted its price target to $230 from $200 and maintained a Buy rating, while Robert W. Baird raised its target to $200 and retained an Outperform rating. Scotiabank also increased its target to $190 and assigned a Sector Outperform rating. The revisions reflect optimism about AI-agent traction, identity security and potential monetization beyond Okta’s traditional per-seat model. Needham raises Okta price target Positive Sentiment: Partner adoption reinforces Okta’s platform strategy. Aembit announced support for Okta’s Cross App Access protocol, extending enterprise identity controls to AI agents. The Blueprint Alliance and partner activity could help Okta build an ecosystem around agent governance and increase the commercial value of its identity platform. Aembit launches support for Okta Cross App Access Neutral Sentiment: Oktane 2026 is a key near-term event. Investors are watching the conference for product announcements, customer traction and evidence that AI-agent security can accelerate Okta’s growth. Media commentary and favorable attention from Jim Cramer have added visibility, but these signals are less substantive than revenue or guidance changes. Okta Oktane 2026 preview Negative Sentiment: Valuation and insider selling remain risks. Okta trades at a premium valuation after its rally, while The Information noted that the payoff from AI remains unproven. Insider Eric Kelleher sold 6,395 shares for approximately $1.17 million under a pre-arranged Rule 10b5-1 plan; the scheduled nature reduces its significance, but it may still weigh on sentiment. Analyst Upgrades and Downgrades A number of equities research analysts recently issued reports on OKTA shares. Royal Bank Of Canada increased their price objective on Okta from $166.00 to $195.00 and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Bank of America upped their target price on Okta from $170.00 to $200.00 and gave the stock a “neutral” rating in a research note on Friday, September 18th. Citizens Jmp raised their price target on Okta from $170.00 to $180.00 and gave the company a “market outperform” rating in a report on Thursday, August 27th. Needham & Company LLC boosted their price objective on Okta from $200.00 to $230.00 and gave the stock a “buy” rating in a report on Monday. Finally, KeyCorp upped their price objective on shares of Okta from $180.00 to $190.00 and gave the stock an “overweight” rating in a research report on Thursday, August 27th. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $177.61.

Get Our Latest Analysis on OKTA

About Okta (Get Free Report)

Okta, Inc provides cloud-based identity and access management solutions for organizations. Its platform helps businesses securely connect employees, customers, partners and applications while managing authentication, authorization and user access across cloud, on-premises and mobile environments.

The company’s offerings include single sign-on, multifactor authentication, adaptive access controls, lifecycle management, identity governance and privileged access capabilities. Through its Customer Identity Cloud, powered by Auth0, Okta also provides tools for developers and businesses to embed authentication and authorization features into applications and digital services.

Founded in 2009 by Todd McKinnon and Frederic Kerrest, Okta completed its initial public offering in 2017.

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AI safety warnings from the people building the models are landing inside cybersecurity revenue expectations, and the market is betting on which companies sit closest to where the risk actually lives.

Cybersecurity stocks are extending last week’s advance into Monday’s midday session, and the leaders today are identity and endpoint names rather than the network security franchise. CrowdStrike Holdings (NASDAQ:CRWD | CRWD Price Prediction) stock is up 4.02% to $247.20, running well ahead of the sector fund and the broader technology benchmark. Also gaining, Okta (NASDAQ:OKTA) shares are climbing 4.05% to $189.77 on the same artificial intelligence security theme.

Palo Alto Networks (NASDAQ:PANW) stock is rising 2.06% to $371.07, a more measured move that reflects Palo Alto’s distance from the identity and device exposure driving the trade. That gap matters, because it tells investors the trade is more about specific business models than about the label of cybersecurity.

For sector context, the First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR) is up 2.46% to $102.33. Meanwhile, the Invesco QQQ Trust (NASDAQ:QQQ) is trading 2.53% higher at $738.96, so the cybersecurity fund and the large-cap technology tape are moving in line with each other today.

AI Safety Warnings Drive the Move The catalyst dates to last week rather than this session. Dario Amodei, chief executive of the privately held artificial intelligence company Anthropic, published an essay on September 12 arguing that fully addressing artificial intelligence risk requires pacing the rate at which capabilities advance so risk prevention can keep up. Sam Altman, chief executive of the privately held OpenAI, said shortly afterward that he agreed, and CrowdStrike, Okta, and Palo Alto shares all rose through last week as those warnings circulated.

Todd McKinnon, co-founder and chief executive of Okta, framed the demand side plainly. McKinnon stated that threat actors are also using these models and aren’t pausing, that they’re coming after everything because they know the work is being done through artificial intelligence, that “the phone is ringing off the hook,” and that every organization knows it has to keep track of all these identities. Okta sits at the identity layer, which is exactly where autonomous software agents create new governance work for enterprise security teams.

Market logic applied to CrowdStrike, Okta, and Palo Alto is second-order. Warnings from the people building the models are being read as evidence that enterprises will spend more on defense, so a debate about artificial intelligence model safety arrives in these companies’ revenue expectations rather than in their reported results. For CrowdStrike, Okta, and Palo Alto, that means today’s move is priced on faith that the safety conversation converts into orders, and if it does, the multiples on these names get easier to defend.

Peer Read and Sector Divergence CrowdStrike sells endpoint protection, which places CrowdStrike close to where autonomous software actually touches enterprise systems. That focus helps explain why CrowdStrike stock is running ahead of both the cybersecurity fund and the QQQ today. CrowdStrike’s bull case is that a durable step up in enterprise security budgets is the kind of demand shift that compounds, and CrowdStrike collects that spend at the layer where machine identities and human users meet.

One complication for CrowdStrike is that the argument is entirely about expectations. Nothing in CrowdStrike’s reported results has changed, and the warnings driving the move came from people with no commercial relationship to CrowdStrike. The move is also more than a week old, which is the point where a theme either shows up in orders or fades.

Palo Alto’s franchise is anchored in network security, and Palo Alto stock is rising by less than CrowdStrike or Okta today. That separation places the trade in individual names rather than in a clean sector sweep, since the cybersecurity fund and the large-cap technology fund are tracking each other closely today. Okta shares are moving with CrowdStrike because Okta sells identity, which is the layer McKinnon described as ringing off the hook.

What to Watch Investors can watch for signs that cybersecurity leadership broadens across the CIBR basket into the afternoon, particularly if more identity and endpoint names join CrowdStrike and Okta above the sector fund’s move. Whether Palo Alto closes the gap with its faster-moving peers, or whether the split between network security and identity-endpoint exposure holds, is the tell for how the market is really scoring today’s story.

Traders may want to keep an eye on whether an artificial intelligence safety debate becomes an enterprise budget line or stays a conversation. Their positions built around this trade in CrowdStrike, Okta, or Palo Alto should be sized to allow for the possibility that the theme cools before it converts to bookings, since the underlying reported results at all three companies haven’t yet caught up to the expectations move. A follow-through data point, whether a supplier update or a security-focused analyst check, could solidify today’s rally into something more durable.

Contact [email protected] for any questions or corrections.

Shares of Okta (OKTA -3.39%) have popped 10% this week, according to data from S&P Global Market Intelligence. The authentication platform for enterprise security is riding high along with other cybersecurity names, and recently reported solid earnings.

Wall Street is optimistic about growing demand for authenticators like Okta because of the threats posed by artificial intelligence (AI). Does that make Okta stock a buy today?

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Increasing cyber importance The cybersecurity incidents coming from the AI labs such as Anthropic and OpenAI have the IT world on edge. But investors see a clear beneficiary from these developments: cybersecurity software. These stocks have soared in the past year, with Wall Street betting on major spending growth in the years ahead.

Okta is an authentication company that helps remote users -- and, in the future, maybe AI agents -- properly log in to enterprise systems. It helps people who should have access to systems log in from anywhere in the world, while keeping out those who shouldn't. AI agent bot swarms trying to access systems make Okta's services that much more important.

Image source: Getty Images.

Is Okta stock a buy? Last quarter, Okta's revenue grew a cool 11% year-over-year, with operating earnings also growing. Importantly, its remaining performance obligations grew 17%, indicating that this solid revenue growth will continue in the years ahead.

If you want a cybersecurity stock to bet on the AI revolution, Okta might just be a solid choice for your portfolio.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Okta. The Motley Fool has a disclosure policy.

Okta Co-Founder and CEO Todd McKinnon joins 'Mad Money' host Jim Cramer to talk AI agents, quarterly results, the future of cybersecurity and more.

Shares of Okta Inc. (NASDAQ:OKTA) are trading sharply higher Monday afternoon, tracking a broader rally in enterprise identity and AI security stocks. Here’s what investors need to know.

Okta stock is at critical resistance. What’s behind OKTA new highs? AI Deceleration Shift and Amodei Warnings Elevate Demand for Identity GuardrailsThe rally across cyber software follows weekend statements led by Anthropic CEO Dario Amodei, and supported by Sam Altman and Elon Musk, calling for a voluntary deceleration of frontier model development to prioritize safety alignment and system security.

Amodei specifically warned that unchecked model scaling creates severe cybersecurity vulnerabilities, arguing that defensive governance, identity controls and threat-monitoring frameworks must be fully integrated before the next phase of training begins.

As Wall Street reassesses near-term hardware CapEx, demand is accelerating for identity architecture that secures non-human identities and autonomous workflows, potentially positioning Okta’s Workforce Identity Cloud, Auth0 for AI Agents and Identity Threat Protection as critical layers for controlled enterprise AI deployment.

AI Agent SSO Adoption and Q2 FY27 Momentum Support Fundamental ThesisMonday’s upside builds on strong operational execution reported in Okta’s second-quarter fiscal 2027 update on August 26. The company posted revenue of $805 million, up 11% year-over-year, and total current remaining performance obligations of $2.585 billion, driven by rapid customer expansion across its Auth0 developer platform and Identity Threat Protection suite.

Crucially, enterprise adoption of Okta’s Agent Single Sign-On and continuous access evaluation frameworks doubled quarter-over-quarter as organizations moved to govern non-human identities and AI agents accessing core databases, reinforcing management’s raised full-year fiscal 2027 revenue guidance of $3.216 billion–$3.226 billion.

OKTA Stock Climbs Monday AfternoonOKTA Price Action: Okta shares were up 12.80% at $187.82 at the time of publication on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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Cybersecurity names like Palo Alto Networks (PANW), CrowdStrike (CRWD), and Okta Inc. (OKTA) among others rallied Monday morning after former and current executives from Anthropic and OpenAI raised concerns on current AI safety. Marley Kayden takes investors through the commentary and the subsequent selloff in Big Tech names like Nvidia (NVDA), Micron (MU), and AMD Inc. (AMD).

SAN FRANCISCO--(BUSINESS WIRE)--Okta, Inc. (NASDAQ: OKTA), the leading independent identity partner, today announced that it will webcast the Opening Keynote and Investor Summit on September 23, 2026. Each presentation will be webcast live on the investor relations section of Okta's website at investor.okta.com. Details for each event are as follows: Event: Oktane Opening Keynote Date: Wednesday, September 23, 2026 Time: 9:00 a.m. Pacific time (12:00 p.m. Eastern time) Event: Okta Investor Summ.

Okta (OKTA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this cloud identity management company have returned +10.4% over the past month versus the Zacks S&P 500 composite's -2% change. The Zacks Security industry, to which Okta belongs, has lost 7.8% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Okta is expected to post earnings of $0.93 per share for the current quarter, representing a year-over-year change of +13.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +6.2%.

The consensus earnings estimate of $3.93 for the current fiscal year indicates a year-over-year change of +12.3%. This estimate has changed +9.8% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $4.44 indicates a change of +13% from what Okta is expected to report a year ago. Over the past month, the estimate has changed +3.5%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Okta is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Okta, the consensus sales estimate of $815.52 million for the current quarter points to a year-over-year change of +9.9%. The $3.22 billion and $3.55 billion estimates for the current and next fiscal years indicate changes of +10.4% and +10.1%, respectively.

Last Reported Results and Surprise HistoryOkta reported revenues of $805 million in the last reported quarter, representing a year-over-year change of +10.6%. EPS of $1.05 for the same period compares with $0.91 a year ago.

Compared to the Zacks Consensus Estimate of $792.14 million, the reported revenues represent a surprise of +1.62%. The EPS surprise was +9.38%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Okta is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Okta. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

By

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Published: Sep 9, 2026, 11:41 GMT+00:00

$169.91

+1.38%

IT security company Okta, Inc. (OKTA) up 94% YTD on AI demand, strong inflows.

OKTA

+1.38%

OKTA offers an enterprise identity management platform, including single sign-on, multi-factor authentication, access gateway, API access management, authentication, adaptive MFA, lifecycle management, and AI agent security. OKTA’s second-quarter 2027 report showed $805 million in revenue (an 11% year-over-year gain), per-share earnings of $1.05 (a 15.4% sequential gain), and offered full-year revenue and operating margin guidance of up to $3.226 billion and 26%, respectively.

No wonder OKTA shares are up 94% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

Big Money Buying Okta Institutional volumes reveal plenty. In the last year, OKTA has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in OKTA shares. They reflect our proprietary inflow signal, pushing the stock higher:

Strong institutional inflows began in January but amplified in May, helping OKTA shares gain 80.8% in a year. Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Okta.

Okta Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, OKTA has had strong sales and earnings growth:

3-year sales growth rate (+16.3%) 3-year EPS growth rate (+383.6%) Source: FactSet

Also, EPS is estimated to ramp higher this year by +10.6%.

Now it makes sense why the stock has been generating Big Money interest. OKTA has a track record of strong financial performance.

Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.

Okta has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s had three Big Money outlier inflow signals in the last two years, gaining 42.3% since the first one in April 2025. The blue bars below shows when OKTA was a top pick…institutions are buyers:

Five outlier inflow signals in 2026 have helped boost OKTA shares by 94% in 2026. Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Okta Price Prediction The OKTA action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in OKTA at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.

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Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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Stock to Watch: Okta (OKTA - Free Report) Okta, Inc.’s cloud-based identity solutions allow customers to integrate with nearly any application, service or cloud that they choose through its secure, reliable, and scalable platforms: Okta Platform and Auth0 Platform. Okta AI Suite is infused into several products available on these two platforms.

OKTA is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. OKTA has a Growth Style Score of B, forecasting year-over-year earnings growth of 12.3% for the current fiscal year.

16 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.10 to $3.93 per share. OKTA boasts an average earnings surprise of +7.9%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, OKTA should be on investors' short list.

I'm reiterating Okta as a buy, with a new $182 price target, following strong Q2 2027 results and early AI-agent commercialization evidence. OKTA delivered 11% revenue growth, 28%+ non-GAAP operating and FCF margins, and improved net retention to 107%, maintaining robust Rule of 40 performance. AI-agent deals are gaining traction but remain immaterial to 2027 results; their impact is expected to become material from 2028 onward if adoption continues.