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Investing.com - Bernstein SocGen Group lowered its price target on Okta, Inc (NASDAQ:OKTA) to $129.00 from $132.00 while maintaining an Outperform rating. According to InvestingPro data, 41 analysts have recently revised their earnings expectations upward, with price targets ranging from $75 to $142.
The price target adjustment follows Okta’s fiscal second quarter 2026 earnings report, which delivered the company’s strongest revenue beat in a year at 2.4% above guidance. Okta raised its full-year outlook by nearly 50% more than the quarterly beat amount. The company maintains impressive gross profit margins of 76.7% and has earned a "GOOD" overall financial health rating from InvestingPro, which offers 10+ additional exclusive insights about Okta’s performance.
Bernstein noted that Okta experienced less impact from macroeconomic concerns than anticipated, with enterprises re-accelerating IT spending after a pause in April and early May. The company also reported better visibility into DOGE’s impact on U.S. Federal business, expected to strengthen in the third quarter.
In U.S. State and Federal segments, Okta outperformed expectations, with first-half renewals making up more of the downsell gap than expected through added features as government entities modernize digital citizen engagement.
The company’s non-GAAP operating margin reached a new record at 27.8%, exceeding consensus by 190 basis points and showing a 600 basis point improvement year-over-year, though Bernstein lowered expectations for new customer re-acceleration while largely maintaining existing customer expansion forecasts.
In other recent news, Okta, Inc reported strong fiscal second-quarter 2026 results, surpassing analysts’ expectations. The company achieved non-GAAP earnings per share of $0.93, exceeding the consensus estimate of $0.84, and revenue of approximately $728.0 million, which was up 13% year-over-year and above the $711.6 million consensus. Okta’s current remaining performance obligations (cRPO) grew by 13.5% year-over-year, outpacing Wall Street’s expectations of around 10.5%. Following these results, Cantor Fitzgerald reiterated its Overweight rating on Okta with a price target of $130, highlighting the company’s strong performance across multiple financial metrics.
Similarly, Mizuho maintained its Outperform rating and $120 price target, attributing Okta’s success to solid execution and robust public sector activity. RBC Capital also raised its price target for Okta to $115 from $113, maintaining an Outperform rating due to the company’s better-than-expected cRPO growth. However, BofA Securities maintained an Underperform rating with a $75 price target, citing competitive concerns despite Okta’s alignment with market expectations for upcoming quarters. Citizens analyst Trevor Walsh reiterated a Market Perform rating, acknowledging Okta’s impressive quarter but maintaining a cautious outlook. These recent developments reflect a range of analyst opinions on Okta’s future prospects.
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