Citizens reiterates Market Perform rating on Okta stock after strong Q2

Published 27/08/2025, 09:56
Citizens reiterates Market Perform rating on Okta stock after strong Q2

Investing.com - Citizens analyst Trevor Walsh reiterated a Market Perform rating on Okta, Inc (NASDAQ:OKTA) following the company’s better-than-expected fiscal second-quarter 2026 results. According to InvestingPro data, 41 analysts have recently revised their earnings expectations upward for the upcoming period.

Okta reported non-GAAP earnings per share of $0.93, exceeding the consensus estimate of $0.84, while revenue reached approximately $728.0 million, up 13% year-over-year and ahead of the $711.6 million consensus.

The identity management company achieved a non-GAAP operating margin of 27.7%, outperforming the consensus expectation of 25.9% for the quarter.

CEO Todd McKinnon emphasized the company’s strategy, stating, "Our strategy is to be the one-stop shop for identity. That’s what customers want. They want fewer identity vendors." McKinnon noted that one of the world’s largest high-tech companies is replacing 50 identity vendors with Okta.

Okta stock has gained approximately 23% year-to-date, including a roughly 6% increase in after-hours trading following the results, outperforming the Russell 3000 index’s 9.2% gain during the same period.

In other recent news, Okta Inc . reported its earnings for the second quarter of fiscal year 2026, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.91, exceeding the forecasted $0.84. This represents an 8.33% earnings surprise. Okta also reported a revenue of $728 million, which surpassed projections of $711.19 million. These results highlight the company’s strong financial performance in the recent quarter. The earnings announcement led to a positive reaction in the market, as indicated by the stock price movement in aftermarket trading. These developments are significant for investors monitoring Okta’s financial health and performance.

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