Okta Reports Q1 Double Beat, Maintains FY26 Revenue Guidance: Retail Cries Foul Over After-Hours Stock Drop

Okta, Inc. (OKTA) shares fell sharply in Tuesday’s after-hours trading as the identity and access management company’s full-year revenue guidance came in slightly shy of estimates and the growth in key performance metrics cooled off. The company, however, reported quarterly top and bottom-line beats.

The San Francisco, California-based company reported adjusted earnings per share (EPS) of $0.86 for the first quarter of the fiscal year 2026, exceeding the $0.77 Finchat-compiled consensus estimate.

Revenue climbed 12% year over year (YoY) to $688 million versus the average analysts’ estimate of $680.08 million and guidance of $678 million-$680 million.

Among the key user metrics, remaining performance obligations (RPO) climbed 21% YoY to $4.084 billion, slowing from the 25% growth in the previous quarter. Current RPO (cRPO), which represents subscription backlog expected to be recognized over the next 12 months, totaled $2.227 billion, exceeding the guidance.

The company ended the quarter with a cash position of $2.725 billion. 

“Okta had a solid start to FY26 highlighted by record operating profit and another quarter of robust free cash flow,” said Todd McKinnon, Chief Executive Officer and co-founder of Okta.

The company’s first quarter guidance calls for revenue of $710 million to $712 million, marking a further slowdown in the YoY growth to 10%. However, it exceeded the consensus estimate of $708.83 billion.

It expects adjusted EPS of $0.83-$0.84 (consensus $0.79).

Okta maintained its fiscal year revenue guidance at $2.850 billion-$2.860 billion, trailing the $2.862 billion consensus estimate. However, it raised the adjusted EPS guidance to $3.23-$3.28 from $3.15-$3.20, above the consensus estimate of $3.20.

On Stocktwits, retail sentiment toward Okta stock was ‘extremely bullish’ (98/100) by late Tuesday, with the message volume ‘extremely high.’ The stock is among the top 10 trending tickers on the platform.

A bullish user fretted that the stock dropped regardless of the earnings. “Manipulation at the best,” they said.

Another user hoped the stock would move between $112 and $115, as they focused on the earnings and revenue beat.

Okta stock ended Tuesday’s regular session up 1.44% at $125.50 and retreated 12.84% in the after-hours session. The stock is up about 60% so far this year.

If the after-hours losses carry over to the regular session, the stock is on track to record its biggest single-day loss since Aug. 2024, according to Koyfin.

For updates and corrections, email newsroom[at]stocktwits[dot]com.