Okta OKTA is set to release first-quarter fiscal 2027 results on May 28.
For the fiscal first quarter of 2027, Okta expects revenues in the range of $749-$753 million, indicating year-over-year growth of 9%. Non-GAAP earnings are anticipated to be in the range of 84-86 cents per share.
The Zacks Consensus Estimate for earnings has remained steady at 85 cents per share over the past 30 days, indicating a year-over-year decline of 1.16%. The consensus mark for revenues is pegged at $751.34 million, indicating an increase of 9.21% from the year-ago quarter’s reported figure.
Okta’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise being 8.81%.
Okta, Inc. Price and EPS Surprise
Okta, Inc. price-eps-surprise | Okta, Inc. Quote
Let’s see how things have shaped up for Okta prior to this announcement:
Factors to Note for Okta
OKTA’s expanding product portfolio, especially in security and identity governance, is expected to have helped it win clients, driving top-line growth in the to-be-reported quarter. In the fourth quarter of fiscal 2026, customers with more than $100K in Annual Contract Value increased 6% year over year to 5,100. The dollar-based retention rate for the trailing 12 months was 106%, down 1% year over year.
Okta exited the fourth quarter of fiscal 2026 with more than 20,000 customers and $4.827 billion in Remaining Performance Obligations (RPOs), reflecting strong growth prospects for subscription revenues. Current RPO jumped 12% year over year to $2.513 billion, highlighting the company’s strong forward 12-month revenue visibility. For the first quarter of fiscal 2027, the current RPO is expected to be between $2.440 billion and $2.450 billion, suggesting year-over-year growth of 10%.
A major driver for Okta’s anticipated growth is the rapid adoption of its new and innovative products, particularly those focused on AI security. Products such as Okta Identity Governance, Okta Privileged Access and the newly introduced Auth0 for AI Agents and Okta for AI Agents have seen strong early demand. In the fourth quarter of fiscal 2026, these new offerings accounted for approximately 30% of bookings, with deals involving these products delivering an average contract uplift of about 40%. This is expected to have driven significant value for customers in the to-be-reported quarter.
Okta is benefiting from a rich partner base that includes the likes of Amazon Web Services (AWS), CrowdStrike, Google, LexisNexis Risk Solutions, Microsoft, Netskope, Palo Alto Networks, Plaid, Proofpoint, Salesforce, ServiceNow, VMware, Workday, Yubico and Zscaler. An expanding partner base, a strong backlog, and an innovative portfolio are expected to have driven Okta’s top-line growth.
However, challenging macroeconomic uncertainties and stiff competition do not bode well for the company.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Okta has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Kinsoft Cloud KC currently has an Earnings ESP of +3.57% and a Zacks Rank #2.
Kingsoft Cloud shares have gained 37.5% in the year-to-date period. Kingsoft Cloud is scheduled to release its first-quarter 2026 results on May 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies DELL has an Earnings ESP of +3.79% and a Zacks Rank #2 at present.
Dell Technologies shares have surged 134.5% in the year-to-date period. Dell Technologies is set to report first-quarter fiscal 2027 results on May 28.
Autodesk ADSK presently has an Earnings ESP of +0.35% and a Zacks Rank #3.
Autodesk shares have plunged 18.6% in the year-to-date period. Autodesk is scheduled to release first-quarter fiscal 2027 results on May 28.
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This article originally published on Zacks Investment Research (zacks.com).