What to Expect from Okta's Earnings

Okta OKTA is set to give its latest quarterly earnings report on Tuesday, 2025-05-27. Here's what investors need to know before the announcement.

Analysts estimate that Okta will report an earnings per share (EPS) of $0.77.

The market awaits Okta's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

In the previous earnings release, the company beat EPS by $0.04, leading to a 24.27% increase in the share price the following trading session.

Here's a look at Okta's past performance and the resulting price change:

Performance of Okta Shares

Shares of Okta were trading at $123.91 as of May 22. Over the last 52-week period, shares are up 28.67%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Okta

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Okta.

The consensus rating for Okta is Buy, derived from 33 analyst ratings. An average one-year price target of $124.48 implies a potential 0.46% upside.

Comparing Ratings with Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Twilio, GoDaddy and MongoDB, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Twilio, with an average 1-year price target of $130.8, suggesting a potential 5.56% upside.
• Analysts currently favor an Neutral trajectory for GoDaddy, with an average 1-year price target of $215.0, suggesting a potential 73.51% upside.
• Analysts currently favor an Buy trajectory for MongoDB, with an average 1-year price target of $278.9, suggesting a potential 125.08% upside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Twilio, GoDaddy and MongoDB, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Okta ranks highest in Gross Profit and Revenue Growth among its peers. It has the lowest Return on Equity. In terms of Consensus, Okta is positioned in the middle compared to its peers.

Discovering Okta: A Closer Look

Okta is a cloud-native security company that focuses on identity and access management. The San Francisco-based firm went public in 2017 and focuses on two key client stakeholder groups: workforces and customers. Okta's workforce offerings enable a company's employees to securely access its cloud-based and on-premises resources. The firm's customer offerings allow its clients' customers to securely access the client's applications.

Unraveling the Financial Story of Okta

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Positive Revenue Trend: Examining Okta's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.73% as of 31 January, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Okta's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.37% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Okta's ROE excels beyond industry benchmarks, reaching 0.36%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Okta's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.25%, the company showcases efficient use of assets and strong financial health.

Debt Management: Okta's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.15.

To track all earnings releases for Okta visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.