10-Q · May 28, 2026
Okta's Q1 FY27 performance exceeded expectations with revenue of $765 million and EPS of $0.91, surpassing estimates of $751.7 million in revenue and $0.74 in EPS. The results were bolstered by a strong subscription…
Earnings analysis · 10-Q
OKTA earnings analysis
Filed August 26, 2026 · Our reading of the company's report
The latest report
Okta delivered a strong quarter, with $805 million of revenue, $1.05 of non-GAAP diluted EPS and $227 million of free cash flow, while GAAP operating margin expanded to 13% from 6% year over year. Liquidity remained…
Read full summary
Okta delivered a strong quarter, with $805 million of revenue, $1.05 of non-GAAP diluted EPS and $227 million of free cash flow, while GAAP operating margin expanded to 13% from 6% year over year. Liquidity remained substantial at $2.299 billion, and the company eliminated the remaining $350 million of convertible-note principal at maturity. The principal offsets are continued cash deployment through $125 million of repurchases and exposure to interest-rate-sensitive investment income. The 10-Q reports no material changes to the risk factors in the 2026 Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.05
- Operating margin
- 13%
What stood out
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Revenue and EPS beat estimates
Revenue was $805 million and non-GAAP diluted EPS was $1.05, exceeding consensus estimates of $792.849 million and $0.86, respectively. Revenue beat estimates by approximately 1.5% and EPS beat by approximately 22.1%.
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Operating margin expanded
GAAP operating margin improved to 13% from 6% in the year-ago period, a 7-percentage-point expansion.
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Strong free cash flow generation
Free cash flow was $227 million during the quarter, supporting continued liquidity despite ongoing capital deployment.
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Substantial liquidity position
Cash, cash equivalents and short-term investments totaled $2.299 billion as of July 31, 2026, including $2.066 billion invested in government securities, money market funds, corporate debt securities and certificates of deposit.
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Convertible debt maturity resolved
Okta settled the remaining $350 million principal amount of its 2026 Notes in cash on June 15, 2026, eliminating the associated convertible-note and capped-call market risks.
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Share repurchases continued
Okta repurchased 1.542 million shares for $125 million at an average price of $81.06 during the quarter, with approximately $555 million remaining under the $1 billion authorization.
What to watch
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Interest income remains rate sensitive
The company held $2.299 billion in cash, cash equivalents and short-term investments, of which $2.066 billion was invested in interest-rate-sensitive securities. Management states that future investment income may fall short of expectations if rates change.
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Cash deployment reduces flexibility
Okta used cash to settle the remaining $350 million principal amount of its 2026 Notes and spent approximately $125 million repurchasing 1.542 million shares during the quarter, reducing cash available for other corporate purposes.
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Foreign-exchange exposure persists
The filing states that a hypothetical 10% change in foreign currency exchange rates would not have had a material impact during the six months ended July 31, 2026, but operating expenses remain exposed to currencies including the U.S. dollar, Canadian dollar, British pound and Australian dollar.
Management's outlook
The 10-Q excerpt does not provide quantitative revenue or EPS guidance; outlook was provided in the accompanying earnings release rather than the filing.
Earlier filings 4
10-K · March 5, 2026
Okta presents a strategy to expand its Okta and Auth0 platforms (including early-access products for AI agents) and to capture identity market share via integrations, partner channels and developer-focused offerings.…
10-Q · December 3, 2025
Okta reported Q3 (three months ended October 31, 2025) revenue of $742 million, up $77 million (11.6%) year-over-year and $14 million (1.9%) sequentially, with gross margin of 77.1% and operating income of $23 million.…
10-Q · May 28, 2025
Okta reported Q1 revenue of $688.0M (up $71M, +11.5% YoY from $617.0M) and GAAP diluted EPS of $0.35 (vs. $(0.24) prior year), driven by subscription revenue of $673.0M. Gross profit rose to $533.0M (gross margin…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.