Okta Q1 Revenue Rises 11% to $765M, Price Target Raised to $120
OKTA•Macquarie raised its price target for Okta to $120 after the identity management leader reported Q1 revenue of $765 million, an 11% increase, and adjusted EPS of $0.91. The company also saw cRPO climb 12% to $2.5 billion and raised its fiscal 2027 revenue outlook to up to $3.205 billion.
1. Analyst Reiterates Rating and Raises Price Target
Macquarie reiterated an Outperform rating and raised Okta's price target to $120 from $100, citing strong execution and market leadership. The firm highlighted Okta's growing position in AI-driven identity security as a key driver for the upgrade.
2. Q1 Fiscal 2027 Results Exceed Expectations
Okta delivered Q1 revenue of $765 million, up 11% year-over-year, and posted adjusted earnings per share of $0.91, surpassing consensus estimates of $0.85. The growth stemmed from expanded enterprise contracts and increased adoption of cloud-based authentication tools.
3. Future Revenue Indicators Strengthen Outlook
Current remaining performance obligations grew 12% to $2.5 billion, reflecting robust contracted future revenue. Okta also raised its full-year revenue guidance to a range of $3.185 billion to $3.205 billion, underscoring confidence in sustained momentum.
4. Stock Hits 52-Week High on AI Security Demand
Following the earnings report and target increase, Okta's share price reached a 52-week high of $123.52. Investors attributed the rally to strong earnings momentum and accelerating demand for AI-enhanced security solutions within Okta's platform.
