Okta Q4 Sales Up 11% to $761M with Record EPS of $0.90
Okta posted Q4 revenue of $761 million, up 11% year over year, and record EPS of $0.90, beating estimates, as remaining performance obligations rose 15%. Q1 FY27 revenue guidance of 9% growth and tempered full-year forecast have drawn caution as customer additions slowed and analysts trimmed targets.
1. Q4 Financial Results
Okta delivered Q4 revenue of $761 million, an 11% increase year over year, and achieved EPS of $0.90, a 15% improvement. Remaining performance obligations rose 15% YoY while current RPO climbed 12%, underscoring strong subscription backlog.
2. Profitability and Cash Flow
The company recorded record free cash flow of $252 million, up 11% from the prior year, and maintained robust non-GAAP operating margins. These results reflect efficient operational execution as enterprise customers expanded use of Okta’s unified identity security platform.
3. Guidance for Q1 FY27 and FY27
Okta guided Q1 FY27 revenue growth of 9% and projected current RPO growth of 10%, with non-GAAP operating margins of 23%–24% and free cash flow margins of 33%–35%. Full-year FY27 targets include 9% sales growth, 25%–26% non-GAAP margins and 27%–28% free cash flow margins.
4. Analyst Responses and Market Impact
Despite the beat, slowing net retention rates and decelerated customer additions prompted analysts to lower price targets. The stock rallied roughly 10% on earnings as investors weighed the growth outlook against competitive pressures.