[REVISION HISTORY]

Okta, Inc. financial performance and stock valuation

Updated 7 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-01 18:31 UTC → 2026-10-02 21:56 UTC · added ~~removed~~

Okta, Inc. has experienced updates regarding its stock valuation and financial reporting. Financial institutions have issued increased price targets for the company, with Barclays raising its target from $170.00 to $180.00 while maintaining an ‘overweight’ rating. Other institutions, including Jefferies Financial Group and Susquehanna, have also set updated targets of $200.00 and $110.00, respectively. Following the company’s second quarter fiscal 2027 earnings call, Okta shares surged nearly 29% after reporting results that exceeded Wall Street expectations and included an upward revision of its full-year revenue outlook. The company reported revenue of $805 million, an 11% increase year-over-year, while subscription revenue rose 12% to $793 million. Adjusted earnings per share reached $1.05, surpassing the $0.97 forecast. Profitability showed significant improvement, with GAAP operating income rising to $107 million from $41 million in the previous year, doubling the GAAP operating margin to 13%. Growth indicators also improved, with remaining performance obligations (RPO) increasing 17% to $4.86 billion, while current RPO increased 14% to $2.59 billion. CEO Todd McKinnon noted that the expansion of artificial intelligence is driving demand for identity security, with new products accounting for nearly a third of total bookings and the company securing dozens of AI-focused deals. ~~This momentum, alongside strong earnings from CrowdStrike, contributed~~ Bank of America analysts upgraded Okta to ~~gains across the~~ a neutral rating, citing accelerating AI growth, though they noted broader ~~cybersecurity sector, including Palo Alto Networks, Zscaler, and Rubrik, as businesses increase spending to combat AI-driven cyber threats.~~ adoption is in its preliminary stages. At the Oktane 2026 event, Okta unveiled its ‘Secure Agentic Enterprise’ strategy, signaling an intent to expand beyond application access control to governing the actions of AI agents within businesses. The proposed framework includes agent discovery, identity governance, an Agent Gateway, and runtime response capabilities such as token revocation. While the blueprint addresses containing misbehaving agents, industry leaders noted that end-to-end data and system recovery remains a collaborative requirement involving cloud and network providers.

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