Okta Posts Q1 Beat, Outlook Hit By Heightened Macro Uncertainty, Analysts Revise Price Target

Shares of Okta Inc OKTA tanked in early trading on Wednesday despite the company’s upbeat quarterly results on Tuesday.

Here are some key analyst takeaways.

Guggenheim Securities On Okta

Analyst John DiFucci reiterated a Buy rating while reducing the price target from $140 to $138.

Okta's subscription and total revenues rose 12% year-on-year to $673 million and $688 million, beating expectations by 80 basis points (bps) and 1.2 bps, respectively, DiFucci said in a note. Despite the beat, the results reflected "another quarter of deceleration from the year-ago period," he added.

Management maintained its full-year guidance, which means that none of the first-quarter beats flowed through, the analyst stated. This seems "prudent" given "the heightened uncertainty in the selling environment," he further wrote.

Stifel On Okta

Analyst Adam Borg maintained a Buy rating while raising the price target from $120 to $130.

Okta delivered solid quarterly results, with all key metrics coming in above the guidance, Borg said. Although cRPO (current remaining performance obligation) grew 14% year-on-year, beating guidance of 12%, it came in below some expectations of 15%-16%, he added.

The analyst also stated that the stock was impacted by the company’s guidance to cRPO for the fiscal second quarter, slightly below consensus. "Regarding the macro/guidance, management notes of no impacts in the April quarter (and early May), but is baking in additional conservatism to guidance," he wrote.

DA Davidson On Palo Okta

Analyst Rudy Kessinger reaffirmed a Buy rating while cutting the price target from $145 to $140.

Okta reported revenues and earnings of $688.0 million and 86 cents per share, beating consensus of $680.1 million and 77 cents per share, respectively, Kessinger said. The company guided to revenue and earnings of $711.0 million and 84 cents per share for the fiscal second quarter, higher than consensus of $708.8 million and 79 cents per share, he added.

The analyst stated that the guidance implies rev growth of +10% year-on-year. "FY26 growth guidance continues to look very conservative in light of recent CRPO growth and other factors."

Goldman Sachs On Okta

Analyst Gabriela Borges reiterated a Buy rating while raising the price target from $123 to $137.

Okta's revenue was 1% higher than Street expectations, while cRPO was 2% above and EBIT margin surpassed estimates by around 200bps, Borges said. The revenue guidance for the fiscal second quarter came in line with expectations, but the cRPO outlook missed by 1%, she added.

Management maintained their full-year revenue and EBIT margin guidance, the analyst stated. "NRR (net recurring revenue) was 106% (down from 107% in 4QFY) and is expected to stay within the 106-108% range for the balance of FY26," Borges further wrote.

Needham On Okta

Analyst Mike Cikos maintained a Buy rating while lifting the price target from $115 to $125.

Okta's results surpassed the guidance and its pipelines strengthened during March and April, Cikos said. He added, however, that investors are likely to focus on cRPO growth in the July quarter, which was guided to $2,200-$2,205 billion, missing sell-side projections of $2.229 billion.

This was the first time management guided to a sequential decline in cRPO for the second quarter. "Management embedded additional conservatism into the guide to account for the uncertain economic environment," he further wrote.

Check out other analyst stock ratings.

RBC Capital Markets On Okta

Analyst Matthew Hedberg reiterated an Outperform rating, while reducing the price target from $143 to $135.

Okta reported "a good quarter," and is seeing healthy traction around its go-to-market changes, Hedberg said. Although the company did not experience any macro pressures, it kept its full-year guidance unchanged due to macro uncertainties, he added.

"We also think Q2/26 cRPO, which was guided lower, was mismodeled by the Street," the analyst wrote.

Stephens On Okta

Analyst Todd Weller maintained an Equal-Weight rating and price target of $127.

Okta delivered a strong revenue performance, beating the consensus, "with growth continuing to trend positively," Weller said. The company's profitability was strong, with non-GAAP operating margin and free cash flow margin coming in at 26.7% and 34.6%, respectively, he added.

Okta took a prudent approach for guidance due to "potential risks related to its go-to-market specialization that was recently rolled out" and risks related to the uncertain environment, he stated.

Roth Capital Partners On Okta

Analyst Taz Koujalgi reiterated a Buy rating and price target of $119.

While Okta delivered revenues above its guidance and consensus estimates, the beat was lighter versus prior quarters, Koujalgi noted. cRPO was also better than the guidance, but was "at the low end of buyside expectations," he added.

Okta said April had been a good month and that and May was "off to a good start," the analyst stated. "But, similar to many other cybersecurity companies that have reported so far, it cited macro uncertainty driving an extra degree of conservatism in its guide," Koujalgi wrote.

WestPark Capital On Okta

Analyst Casey Ryan maintained a Buy rating and price target of $140.

Okta's cRPO grew 15% year-on-year to $2.2 billion, while total RPO grew 21% to $4.1 billion, Ryan said. "We view it as a positive that both backlog metrics grew faster than revenues," he wrote.

"We believe the trend in agentic computing identities will drive demand across almost all end customer use cases," the analyst further stated.

JMP Securities On Okta

Analyst Trevor Walsh reiterated a Market Perform rating on the stock.

For the fiscal second quarter, Okta provided guidance of $710.0-$712.0 million versus a consensus of $708.3 million, Walsh said. The non-GAAP earnings outlook came in at 83-84 cents per share, above the consensus of 79 cents per share, he added.

While there were "no discernible disruptions from tariffs" during the quarter, management chose to take a conservative approach to guidance due to "general uncertainty" in the environment, the analyst stated.

Raymond James On Okta

Analyst Adam Tindle reaffirmed a Market Perform rating on the stock.

Okta's cRPO guidance implied a sequential decline for two consecutive quarters, Tindle said.

"This is relevant as software models can waterfall off growth from the balance sheet for a while, but this metric suggests real-time growth of the business is in decline which has implications for the valuation multiple," he wrote.

OKTA Price Action: At the time of publication on Wednesday, shares of Okta had declined by 14.12% to $107.78.

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