Okta Shares Rise 8.7% After Earnings Beat Expectations

The cloud identity management company reported strong Q4 results and provided upbeat guidance for fiscal 2027.

Mar. 5, 2026 at 5:04pm by Ben Kaplan

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Okta, Inc.'s stock price rose 8.7% on Thursday after the cloud identity management company reported better-than-expected earnings for the fourth quarter. Okta posted Q4 EPS of $0.90, topping the consensus estimate of $0.85, and revenue of $761 million, above the expected $749.87 million. The company also provided upbeat guidance for fiscal 2027, projecting EPS in the range of $3.74 to $3.82 and Q1 2027 EPS of $0.84 to $0.86.

Why it matters

Okta's strong quarterly performance and positive outlook suggest the company is continuing to capitalize on the growing demand for secure identity and access management solutions as businesses increasingly shift to cloud-based operations. The stock buyback program also indicates management's confidence in Okta's long-term prospects.

The details

Okta reported a 11.6% year-over-year increase in revenue during the quarter. The company's return on equity was 3.77% and it had a net margin of 6.87%. Okta also announced a $1 billion stock buyback program, representing up to 6.8% of its outstanding shares.

  • Okta reported its Q4 2026 earnings on March 5, 2026.
  • Okta's board authorized a $1 billion stock buyback program on January 5, 2026.

The players

Okta, Inc.

An American cloud identity management company headquartered in San Francisco, California.

Todd McKinnon

The co-founder and chief executive officer of Okta.

Frederic Kerrest

The co-founder and chief operating officer of Okta.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

The takeaway

Okta's strong quarterly results and positive outlook demonstrate the company's ability to capitalize on the growing demand for secure identity and access management solutions as businesses continue to migrate to the cloud. The stock buyback program also signals management's confidence in Okta's long-term growth prospects.