Okta Beats Q1 Earnings Estimates, Shares Tumble On Cautious Guidance Commentary

Okta Inc OKTA reported financial results for the first quarter after the market close on Tuesday. Here’s a rundown of the cloud-native cybersecurity company’s report.

Q1 Earnings: Okta reported first-quarter revenue of $688 million, beating analyst estimates of $680.25 million. The company reported adjusted earnings of 86 cents per share, beating analyst estimates of 77 cents per share.

Okta has a history of consistently beating analyst estimates on the top and bottom lines, according to Benzinga Pro.

Total revenue was up 12% on a year-over-year basis as subscription revenue also climbed 12%. Remaining performance obligations totaled $4.08 billion at quarter’s end, up 21% year-over-year.

Net cash provided by operations was $241 million, up from $219 million in the prior year's quarter. Okta generated free cash flow of $238 million in the first quarter, up from $214 million year-over-year.

The company ended the quarter with approximately $2.73 billion in cash, cash equivalents and short-term investments.

“Okta had a solid start to FY26 highlighted by record operating profit and another quarter of robust free cash flow. The world’s biggest organizations continue to turn to Okta to solve identity security across their workforces, customers, and AI use cases,” said Todd McKinnon, co-founder and CEO of Okta.

Guidance: Okta expects second-quarter revenue of $710 million to $712 million. The company anticipates second-quarter adjusted earnings of 83 to 84 cents per share.

“We remain focused on driving profitable growth, accelerating innovation, and delivering the only modern, unified identity security platform for our customers,” McKinnon said.

Okta expects full-year 2026 revenue to be in the range of $2.85 billion to $2.86 billion. The company expects full-year adjusted earnings of $3.23 to $3.28 per share.

Okta noted that the company is now factoring in potential risks related to macroeconomic uncertainty for the remainder of the year. Okta’s management team will further discuss the quarter on a conference call with investors and analysts at 5 p.m. ET.

OKTA Price Action: Okta shares were down 11.08% in Tuesday’s after-hours session, trading at $111.74 at the time of publication, according to Benzinga Pro.

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