Okta Raises FY27 Guidance After Q1 Beat With 11% Revenue Growth
OKTA•Okta reported Q1 fiscal 2027 revenue of $765M, up 11% year-on-year, beating estimates, and delivered adjusted EPS of $0.91. It raised full-year revenue guidance midpoint to $3.195B, projected Q2 sales of $790–794M and EPS of $0.95–0.97, while free cash flow margin reached 35%.
1. Q1 Fiscal 2027 Performance
Okta posted first-quarter revenue of $765 million, marking 11% year-over-year growth, and delivered adjusted earnings per share of $0.91. Subscription revenue reached $750 million, free cash flow hit $271 million (35% margin), and net revenue retention accelerated to 107%.
2. Full-Year and Q2 Guidance
Management increased full-year fiscal 2027 revenue guidance midpoint by $15 million to $3.195 billion and forecast adjusted EPS of $3.79 to $3.87. For the second quarter, Okta projects revenue between $790 million and $794 million with EPS of $0.95 to $0.97.
3. Demand Trends and Product Momentum
Current remaining performance obligations grew 12% to $2.5 billion, exceeding guidance midpoint, while new products accounted for roughly 25% of Q1 bookings. Executives noted accelerating AI-related identity demand and analysts highlighted improved channel partner contributions and attractive valuation metrics.
