Okta Posts 6% EPS Surprise and Sets $3.78 FY27 EPS Guideline
Okta delivered adjusted EPS of $0.90, beating consensus by $0.05, and reported 11% year-over-year revenue growth to $761 million, exceeding estimates by 1.6%. For fiscal 2027, it set full-year adjusted EPS guidance at $3.78 midpoint above consensus, while revenue guidance of $3.17–3.19 billion matches expectations and reflects a 1% headwind.
1. Q4 Earnings Beat
Okta reported adjusted EPS of $0.90, beating the $0.85 estimate by 6.0%, and delivered revenue of $761 million, up 11% year-over-year and 1.6% above consensus, driven by strong subscription sales.
2. AI Momentum
The company cited accelerating adoption of its AI agents within its unified identity platform as a key growth driver, enhancing customer engagement and fueling incremental deal momentum among enterprise clients.
3. Fiscal 2027 Guidance
For fiscal 2027, Okta guided to full-year adjusted EPS of $3.74 to $3.82 (midpoint $3.78), above the $3.67 consensus, while revenue guidance of $3.17 to $3.19 billion aligns with expectations and incorporates a one-percentage-point headwind from shifting professional services to partners.
4. Balance Sheet and Backlog
Okta ended the quarter with $2.553 billion in cash and equivalents, generated $252 million in free cash flow, and reported remaining performance obligations of $4.827 billion, up 15% year-over-year, underscoring strong deferred revenue visibility.