The beat is solid but the key driver is the raised guidance and cRPO momentum. However, Q2 revenue guidance of 9% YoY implies deceleration from Q1's 11% — watch the earnings call for signs of demand softening or FX headwinds. The $248M share repurchase is capital return positive but not a fundamental growth driver. The stock likely trades positively on the beat and raised guide, but the deceleration narrative caps upside.
Price Chart
Executive Summary
Okta reported Q1 FY27 revenue of $765M (+11% YoY) and non-GAAP EPS of $0.91, beating consensus of $0.85 (+5.9%). Total RPO grew 16% YoY to $4.719B and cRPO grew 12% to $2.499B. FY27 revenue guidance was raised modestly to $3.185-3.205B (from prior $3.170-3.190B), and non-GAAP EPS guidance was raised to $3.79-3.87 (from $3.74-3.82). Operating cash flow was $277M (36% margin) and FCF was $271M (35% margin). The beat is modest and the growth trajectory remains steady at 11% — the key positive is cRPO strength and the raised guidance, but the guidance range implies deceleration to ~9% growth in Q2.
Key Financial Metrics
Key Facts
- Q1 FY27 total revenue $765M (+11% YoY), subscription revenue $750M (+11% YoY)
- Non-GAAP diluted EPS $0.91 vs consensus $0.85 (+5.9% beat)
- Total RPO $4.719B (+16% YoY), cRPO $2.499B (+12% YoY)
- GAAP operating income $56M (7% margin) vs $39M (6% margin) last year
- Non-GAAP operating income $191M (25% margin) vs $184M (27% margin) last year
- Operating cash flow $277M (36% margin), FCF $271M (35% margin)
- FY27 revenue guidance raised to $3.185-3.205B (9-10% YoY) from prior $3.170-3.190B
- Non-GAAP EPS guidance raised to $3.79-3.87 from prior $3.74-3.82
- Q2 FY27 revenue guidance $790-794M (9% YoY), below Q1's 11% growth rate
- Stock repurchases of $248M during Q1
Financial Impact
Modest beat on both revenue and EPS; raised full-year guidance by ~$15M revenue and ~$0.05 EPS; Q2 guidance suggests deceleration to 9% growth
Risk Factors
- Revenue growth deceleration from 11% in Q1 to guided 9% in Q2
- Non-GAAP operating margin declined from 27% to 25% YoY despite higher revenue
- Sales & marketing expense grew 17% YoY, outpacing revenue growth of 11%
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001660134-26-000050 |
| Document: okta-20260528.htm | 0001660134-26-000050 |
| Document: 0001660134-26-000050-index-headers.html | 0001660134-26-000050 |
| Document: 0001660134-26-000050-index.html | 0001660134-26-000050 |
| Document: 0001660134-26-000050.txt | 0001660134-26-000050 |
| 8-K Data (Synthetic) | 0001660134-26-000050 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 23, 2026 14w ago | 8-K | $118.58 $190.02 | ▲ +60.25% | ▲ +57.41% | $211.49 (+78.35%) |
May 28, 2026 18w ago | 8-K | $123.27 $130.97 | ▲ +6.25% | ▲ +5.06% | $211.49 (+71.57%) |
May 7, 2026 21w ago | DEFA14A | $83.85 $141.57 | ▲ +68.83% | ▲ +66.11% | $211.49 (+152.22%) |
Mar 23, 2026 27w ago | 8-K | $80.69 $116.27 | ▲ +44.09% | ▲ +29.60% | $211.49 (+162.09%) |
Mar 19, 2026 28w ago | Insider Cluster | $80.71 $117.58 | ▲ +45.68% | ▲ +31.34% | $211.49 (+162.03%) |
Mar 19, 2026 28w ago | Insider Cluster | $80.71 $117.58 | ▼ −45.68% | ▼ −31.34% | $211.49 (−162.03%) |
Mar 11, 2026 29w ago | 8-K | $78.63 $118.72 | ▲ +50.98% | ▲ +40.28% | $211.49 (+168.96%) |
Mar 4, 2026 30w ago | 8-K | $79.30 $139.79 | ▲ +76.27% | ▲ +64.97% | $211.49 (+166.69%) |
Feb 23, 2026 31w ago | Court Ruling | $69.51 $85.70 | ▼ −23.29% | ▼ −15.77% | $211.49 (−204.26%) |
US Market Status
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