TLDR
- Okta reported Q1 FY2027 EPS of $0.91, beating the $0.85 estimate, with revenue of $765M vs. $752M expected
- The stock surged ~27.7%, trading above $115, clearing its previous 52-week high of $107.84
- Multiple analysts raised price targets, ranging from $100 to $130
- Current remaining performance obligations (cRPO) grew 12% year-over-year, ahead of the 10% consensus
- Okta raised all FY2027 guidance metrics and flagged strong early traction with AI Agents
Okta (OKTA) stock jumped roughly 27.7% on Thursday after the identity management company posted better-than-expected Q1 fiscal 2027 results. The stock was trading around $115.94, pushing past its previous 52-week high of $107.84 and lifting its market cap to approximately $20 billion.
The company reported EPS of $0.91 against the $0.85 consensus estimate, a beat of about 7%. Revenue came in at $765 million, topping the $752 million forecast by roughly 1.7%.
Current remaining performance obligations — a key forward-revenue indicator — grew 12% year-over-year. That matched Q4’s growth rate and beat both guidance and consensus expectations of 10%.
For Q2, Okta guided cRPO growth of 11% year-over-year, also ahead of the 10% consensus and one point better than Q1 guidance. The company raised all of its full-year FY2027 guidance metrics.
Analysts Lift Price Targets
The earnings report triggered a wave of price target increases from Wall Street.
UBS analyst Roger Boyd raised his target to $130 from $115. DA Davidson also moved to $130 from $110, though it kept a Neutral rating. Raymond James analyst Adam Tindle had one of the bigger moves, lifting his target to $115 from $85.
RBC Capital’s Matthew Hedberg raised his target to $122 from $108. Cantor Fitzgerald moved to $125 from $100. Stifel went to $120 from $92. Jefferies hit $120 as well. Mizuho’s Gregg Moskowitz, who reiterated a Buy, raised his target to $110 from $100 — though that now sits below where the stock is trading.
Wells Fargo analyst Richard Poland lifted his target to $100 from $85.
Jefferies analyst Joseph Gallo, flagged by TipRanks as the most accurate analyst on OKTA, holds a Buy rating with a $120 target. His one-year success rate on the stock sits at 100% with an average return of 15.57%.
AI Agents Flagged as Growth Driver
DA Davidson pointed to AI Agents as a factor showing strong early traction. The firm expects that, combined with ongoing sales productivity improvements and improving OIG traction, this could drive cRPO growth acceleration going forward.
Mizuho’s Moskowitz credited large enterprise customers and new products for driving the strong quarter.
Stifel cited growth in enterprise metrics specifically. Jefferies highlighted the growth in calculated remaining performance obligations as a key positive.
Despite the bullish tone across most coverage, DA Davidson’s analyst maintained a Neutral rating even while raising the target, noting the stock looks overvalued relative to InvestingPro’s Fair Value estimate at current levels.
At $115.94, OKTA is trading roughly 8% above its previous 52-week high.
The post Okta Stock Jumps 27% After Earnings — Here’s Why Wall Street Is Upgrading Fast appeared first on CoinCentral.
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