Okta Posts Q3 Beat, Guidance Miss: Analyst Says ‘Sustainable Growth Remains Hazy’
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, …
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