Okta beats fourth-quarter estimates, but issues weak guidance

March 4, 2026

TL;DR

Okta reported adjusted earnings per share of 90 cents, exceeding the LSEG estimate of 85 cents.
Fourth-quarter revenue reached $761 million, surpassing the expected $749 million and marking an 11% increase year-over-year.
The company reported a net income of $63 million, or 35 cents per share, up from $23 million, or 13 cents, a year prior.
Okta's first-quarter guidance for revenue ($749 million-$753 million) and adjusted earnings (84 cents-86 cents) was lower than analyst expectations.
Management cited market conditions for its cautious forecast, a phrase used in the previous quarter's outlook.
Okta is experiencing increased demand due to the proliferation of agentic agents and their associated security needs.
Despite benefits from AI, the cybersecurity sector has faced pressure, with Okta's stock down 17% year-to-date.
CEO Todd McKinnon views agentic AI as a significant opportunity and expressed confidence in Okta's security infrastructure reputation.
Remaining performance obligations (subscription backlog) rose 15% to $4.83 billion, exceeding the $4.62 billion estimate.
For the full year, Okta anticipates revenue between $3.17 billion and $3.19 billion, aligning with analyst estimates.

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