Okta (NASDAQ:OKTA) is gearing up to announce its quarterly earnings on Tuesday, 2025-08-26. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Okta will report an earnings per share (EPS) of $0.64.

The announcement from Okta is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.09, leading to a 16.16% drop in the share price on the subsequent day.

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

Performance of Okta Shares

Shares of Okta were trading at $92.05 as of August 22. Over the last 52-week period, shares are down 4.58%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analyst Insights on Okta

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

A total of 24 analyst ratings have been received for Okta, with the consensus rating being Neutral. The average one-year price target stands at $123.42, suggesting a potential 34.08% upside.

Analyzing Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Twilio, MongoDB and GoDaddy, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Twilio, with an average 1-year price target of $141.25, suggesting a potential 53.45% upside.
• Analysts currently favor an Buy trajectory for MongoDB, with an average 1-year price target of $276.35, suggesting a potential 200.22% upside.
• Analysts currently favor an Outperform trajectory for GoDaddy, with an average 1-year price target of $195.17, suggesting a potential 112.03% upside.

Peers Comparative Analysis Summary

In the peer analysis summary, key metrics for Twilio, MongoDB and GoDaddy are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Okta ranks in the middle for consensus rating. It ranks at the bottom for revenue growth. It ranks at the top for gross profit. It ranks at the bottom for return on equity.

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.

Key Indicators: Okta's Financial Health

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, Okta showcased positive performance, achieving a revenue growth rate of 11.51% as of 30 April, 2025. This reflects a substantial increase in the company's 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 excels beyond industry benchmarks, reaching 9.01%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Okta's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.96% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Okta's ROA stands out, surpassing industry averages. With an impressive ROA of 0.66%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Okta's debt-to-equity ratio is below the industry average. With a ratio of 0.14, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

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.